Biotech group Elan reported quarterly income of $2.28 billion compared with a net loss of $28.5 million for the same period last year.

The results included $2.5 billion income from the transfer of its blockbuster drug Tysabri to its partner Biogen.

Total revenue from continuing operations was $56.3 million which included a 50 per cent share of Tysabri profits for the month of April and a royalty of 12 per cent of global net sales of Tysabri for May and June.

The company said it ended the quarter with over $1.9 billion in cash and that its net loss from continuing operations was $251.8 million.

“Our second quarter results have been substantially impacted by the completion of the Tysabri transaction, the subsequent $1.0 billion share buyback, debt retirements and other transactions,” Nigel Clerkin, chief financial officer, said.

US activist hedge fund Third Point has been building up a stake in Elan since the company announced it was putting itself up for sale following a prolonged takeover battle with Royalty Pharma.

The fund run by activist shareholder Daniel Loeb is said to have accumulated 2.34 per cent of Elan’s shares, most at $14, putting the cost of the holding at about $179 million.

“We are focused squarely on the process of exploring a sale of the company as announced by our board of directors in June,” Chief executive Kelly Martin said.

“The board of directors and executive management are in complete alignment with regard to exploring all opportunities to maximise shareholder value.”