Elan improves outlook on Q3 profits jump

Pharmaceutical giant Elan today reported profits of $52.3m (€35m) for the third quarter of 2009, compared to a loss of $83.5m (€55m) for the same period last year.

However the results were boosted by a one-off gain of $107.7m (€72m) during the quarter after it sold part of its Alzheimer's research business to Johnson & Johnson.

Excluding this and other charges, the operating loss for the quarter was $1.7m (€1.13m), a decrease of 95% from $31.5m (€21.05m) for the third quarter of 2008.

For the third quarter of 2009, total revenue increased 6% to $287m (€191m) from $270.1m (€180.5m) on Q3 2008, mainly related to growth in the Biopharmaceuticals business.

Revenue from the Biopharmaceuticals business grew by 10%, the increase primarily due to solid growth in sales of its Tysabri drug for multiple sclerosis. Revenue from the Elan Drug Technologies (EDT) business however decreased by 3%.

The company said that it remains on track to record double digit revenue growth and now expects Adjusted EBITDA of around $75m (€50m), better than previously expected.

"We are delighted with our progress this quarter, which reflect a substantial improvement in our liquidity and net debt position, as well as a continued strengthening in our operating performance," said Chief Financial Officer Shane Cooke.