Elan losses widen in second quarter

Losses at Irish drugmaker Elan widened in the second quarter as it set aside $206.3 million to settle US government charges linked to the marketing of an anti-convulsive drug for epileptics.

The company posted a loss of net loss of $213.1 million for the quarter ended June 30th, contributing to a net loss of $215.1 million for the first six months of 2010.

During the quarter, revenues fell to $268.9 million from $280.9 milliona year earlier as the company stopped shipping Azactam. Revenue from the EDT business decreased by 29 per cent, but this was partly offset from increased Tysabri sales.

"The decrease in the second quarter of 2010 as compared to the second quarter of 2009 was more pronounced than the half-year decrease primarily due to the timing of Ampyra revenues, which are recorded based on when the product is shipped to Acorda Therapeutics," Elan said in a statement.

"Consequently, of the $20.8 million in revenues from Ampyra that were recorded in the first half of 2010, only $1.9 million were recorded in the second quarter due to the timing of shipments."

In the first half of the year, total revenue rose to $579.4 million, compare to $526 million a year earlier. Tysabri revenues rose 22 per cent over the period, offsetting reduced revenues from older legacy products.

The company also cut operating expenses during the six-month period, leading to a six-fold increase in adjusted Ebidta to $82.4 million.

The company said it was on target for its full-year forecasts of adjusted EBITDA of more than $150 million and revenue growth.