Elan posts quarterly loss as sales grow

Pharmaceutical company Elan posted a wider-than-expected first-quarter loss today after repaying debt but said it was on track…

Pharmaceutical company Elan posted a wider-than-expected first-quarter loss today after repaying debt but said it was on track to meet full-year goals thanks to a new multiple sclerosis (MS) treatment.

Elan said its loss per share was $0.20 in the three months to end March versus a loss of $0.08 a share in the same period of 2006. Analysts had expected a $0.17 loss, according to the average of six forecasts compiled by Reuters.

"The net loss increased, mainly due to a charge in respect of the early retirement of debt this quarter and the inclusion of a gain on the sale of EU rights to Prialt in 2006," chief financial officer Shane Cooke said.

"As previously guided, we remain optimistic that Elan will record adjusted EBITDA losses of less than $50 million for 2007," he added.

READ MORE

Elan said global first-quarter sales of its MS drug Tysabri were $48.4 million. As of mid-April, 12,500 MS patients had signed up for therapy, and 9,100 of those were already being treated.

Elan's share of Tysabri's sales helped boost group revenue in the first quarter by 31 per cent to $176 million.

Sales of Tysabri, which is key to Elan's future after a brush with bankruptcy in 2002, were suspended in February 2005 over links to a rare, and potentially fatal, brain disease.

The treatment returned to the market last year after regulators ruled its efficacy meant it should be available, albeit with tougher prescription guidelines.