Elan Q3 revenue contracts

Drug maker Elan posted a 2% fall in revenue for the quarter ended September 30, with total revenue of $281.4m (€203.6m) for Q3 2010 down on the figure of $287m (€207m) for the same period last year.

The company nonetheless said it was "very pleased" with the quarterly figures.

"Adjusted EBITDA for the third quarter increased by 61% to $38.2m and the business generated cash flow from operating activities for the third quarter in a row," said CFO Shane Cooke.

Elan recorded a net loss of $43.6m (€31.5m) in the third quarter of this year, compared to net income of $52.3m (€37.8m) in the same period last year, which is said was due to the inclusion of a $107.7m (€77.9m) net gain related to the Johnson & Johnson transaction in 2009.

The company said an improvement in the operating performance resulted from the continued growth in Tysabri, revenues from the launch of Ampyra and a reduction in operating expenses, "which more than offset the impact of reduced revenues from a number of legacy products".

"We also made further progress in improving our balance sheet this quarter, repaying debt that was due in 2011 and 2013 and issuing a 2016 bond," Cookes said.

Elan said that in the past 12 months it had repaid or refinanced $1.3bn (€900m) in debt that was due between 2011 and 2013, resulting in a 27% reduction in its total debt.

The third quarter results highlight our ability to simultaneously improve our operating results, de-lever our balance sheet and advance our pipeline," CEO Kelly Martin commented.

Elan remains on target to record revenue growth for full-year 2010, as well as adjusted EBITDA of more than $150m (€108m) and operating income before other charges or gains.

Mr. Cooke also noted that the Company expected to end 2010 with approximately $400m (€289m) in cash and investments and to be cash flow positive in 2011.