A THREEFOLD increase in sales of multiple sclerosis drug Tysabri helped Elan reduce losses significantly in the first half of the year.
Overall, the Irish drug developer reported an 18 per cent rise in turnover to $352.1 million (€239.5 million) in the six months to the end of June. Tysabri, produced with US partner Biogen, recorded sales of $359.7 million in the half-year compared to $120.5 million in the same period last year. Elan booked $134.3 million in Tysabri sales compared to $18.8 million in the equivalent period in 2007.
There was a small fall in revenue from the drug technologies business that Elan is looking to sell. Sales dipped 1 per cent to $139.1 million in the six months.
The figures, published yesterday, predate the announcement at the end of last month of two further cases of the generally fatal brain disease progressive multifocal leukoencephalopathy (PML) in Tysabri patients. That led to a sharp fall in the share price and concerns that doctors might become more cautious in prescribing the drug.
In a letter to shareholders with the results, Elan president and chief executive Kelly Martin addressed the PML issue and earlier clinical data on an Alzheimer’s drug trial, which also triggered a sharply adverse reaction in the stock market.
In relation to the trial data on Alzheimer’s therapy AAB-001, he said the three questions that needed to be asked were: “Is the drug safe? Does it have biological effects on patients? and Do the findings support the currently ongoing Phase III pivotal trials?
“We strongly believe the answer to all three of these questions is yes,” Mr Martin said, adding that Elan would continue its Alzheimer’s programme with partner Wyeth.
On Tysabri, he said the company would continue to be transparent and to work with patients and physicians on issues as they arise.
Overall, Elan cut its net loss in the first half to $159.4 million from $282.6 million the previous year. Operating costs fell 30 per cent to $132.8 million while spending on RD, primarily on the Alzheimer’s programme, jumped 24 per cent to $159.4 million.
