Drugmaker Elan Posts Narrower Loss In 1st Quarter
From Associated Press (April 21, 2010)
Irish drugmaker Elan Corp. said Wednesday its first-quarter loss narrowed as revenue grew 27 percent, buoyed by strong sales of the multiple sclerosis drug Tysabri.
Elan reported a first-quarter loss of $2 million, or less than a penny per share, compared with a loss of $102.6 million, or 22 cents per share, in the same quarter last year. Revenue increased to $310.5 million from $245.1 million.
Analysts polled by Thomson Reuters expected a loss of 4 cents per share on $298.6 million in revenue.
The drugmaker said its recorded sales of Tysabri increased 25 percent to $198.8 million in the first quarter.
Tysabri suppresses the paralyzing and crippling effects of multiple sclerosis, an incurable disease of the central nervous system. Elan markets and distributes the drug in cooperation with U.S. drugmaker Biogen Idec Inc.
Elan also said its selling, general and administrative expenses fell 10 percent in the first quarter, representing a smaller portion of revenue. Research and development expenses fell 20 percent due to savings from the divestment of an Alzheimer’s immunotherapy program to a subsidiary of the U.S. health care products company Johnson & Johnson.
Last year, Elan sold $885 million in shares and assets to Johnson & Johnson. The New Brunswick, N.J.-based healthcare giant received an 18.4 percent stake in Elan.
U.S.-traded shares of Elan fell 3 cents to $7.53 in afternoon trading.
Posted: April 2010