Elan upbeat despite losses

Pharmaceutical giant Elan today reported a 17% revenue increase resulting in a net loss from continuing operations of $31.8m (€24.08m) in its first-quarter 2012 financial results.

The figure includes a loss of $13.3m (€10m) from the disposal of 76% of the company’s shareholding in Alkermes plc in March 2012.

The net loss from continuing operations for the same period of 2011 was $27.7m (€20.9m) .

Total revenue for the first quarter of 2012 increased to $288.4m (€218.4m) from $247.1m (€187.1m) for the same period of 2011, as a result of the 14% growth in global in-market net sales of Tysabri to $399m (€302.1m) for the first quarter of 2012, from $349.4m (€264.6m) for the same period of 2011.

“Our first quarter financial performance was solid and represents a good start to the year across all aspects of our business,” said CEO Mr Kelly Martin.

“We continue to build the business by delivering double digit top line growth, continuously strengthening our balance sheet and simultaneously investing in our unique science and clinical activities.”

“The opportunities and patient need in the broad area of neurology are significant. We remain focused on the short and long term execution of our plans and committed to extending our leadership in the area of discovery and innovation while, at the same time, offering a unique investment proposition to current or prospective shareholders.”

Adjusted EBITDA from continuing operations increased by 31% to $46.3m (€35m) for the first quarter of 2012, from $35.3m (€26.7m) for the same period of 2011, principally reflecting the continued growth of Tysabri, offset by increased Tysabri sales and marketing expenses.

Operating income, excluding other net charges increased by 18% for the first quarter of 2012 to $24m (€18.17m), compared to $20.3m (€15.3m) for the first quarter of 2011, reflecting the increase in Adjusted EBITDA from continuing operations, partially reduced by higher non-cash stock compensation expense following the increase in the Elan share price since the first quarter of 2011.

The net income for the first quarter of 2011 of $68.2m (€51.6m) includes net income from discontinued operations of $95.9m (€72.6m) relating to the Elan Drug Technologies (EDT) business, which was divested to Alkermes, Inc. in September 2011 for $500m (€378.6m) in cash consideration and 31.9m (€378.6m) ordinary shares of Alkermes plc.

Nigel Clerkin, chief financial officer, said: “We are pleased with the start we have made to the year, with revenues growing by over 17% compared to the first quarter of 2011.

“Tysabri has now achieved an annualized run-rate of in-market sales of $1.6bn (€1.21bn). Additionally, the sale of 76% of our shareholding in Alkermes plc during the quarter for net proceeds of $380.9m (€288.4m) has substantially strengthened our capital structure.

“This solid start to the year places us on-track to achieve our full-year financial guidance.”