Elan tweaks sales target but not earnings forecast

ELAN tweaked its full-year sales target yesterday but stuck to its earnings forecast and said it continued to invest in its suspended Tysabri drug after posting a second-quarter loss in line with market expectations.

Following supply problems in the early part of the year, Elan said it saw 2005 sales of $460 million (€383m) to $500m.

“Top-line numbers were broadly in line with our forecast and at first glance, despite the pull back in revenue guidance, any changes to our revenue model will be minimal,” said Goodbody Stockbrokers analyst Ian Hunter.

Elan’s earlier forecast was for 2005 sales of $500m.

However, the company said by keeping a lid on costs it remained “cautiously optimistic” it would meet its target of break-even earnings before interest, tax depreciation and amortisation by the end of 2005, once the costs associated with Tysabri had been excluded.

Elan said it continued to invest in its Tysabri multiple sclerosis drug and it remained committed to reintroducing the treatment.

The company posted a net loss for the three months to the end of June of $0.35 per share.