Revenue at biotech firm Elan rose strongly in the first quarter of the year, boosted by growth in sales of Tysabri and the recent launch of Ampyra, as the firm posted an operating profit and narrowed net losses.
The company reversed an operating loss of $54.8 million in the same quarter last year to an operating profit before other net charges of $32.7 million. Net income before tax was $10 million for the quarter, and net loss narrowed to $2 million from from $102.6 million a year earlier.
Revenue for the three months to March 31st 2010 was up 27 per cent at $310.5 million, with Elan Drug Technologies (EDT) revenue rising 28 per cent and bioneurology up 26 per cent. Tysabri revenue was up 25 per cent for the three-month period to $198.8 million.
Net income before tax was $10 million, with the company claiming an improved operating performance.
Chief financial officer Shane Cooke said the company had a "solid start" to the year.
"For the full year 2010, we remain on target to record revenue growth, adjusted EBITDA of more than $150 million and, for the first time in several years, operating profits before other charges or gains," he said.
The biotech firm reiterated its 2010 guidance for improved revenue over 2009 performance and gross margin in the range of 45 to 50 per cent. Operating expenses are expected to be in the range of $475-$525 million.
Elan chief executive Kelly Martin said the results showed "continued progress" for the company.
"Both the BioNeurology and EDT businesses are profitable at the operating level and the respective pipelines continue to mature. At the corporate level, the recently announced exploration of a
possible separation of EDT will allow us to accurately assess the opportunity and impact on shareholder value," he said.
Elan announced earlier this week that it was assessing the possibility of separating the company into two listed entities, hiving off EDT from the company’s bioneurology business.
