Elan reports losses of $141m

Pharmaceutical firm Elan this morning reported a higher than expected net loss of $141 million (€102

Pharmaceutical firm Elan this morning reported a higher than expected net loss of $141 million (€102.8 million) for the six months to June.


In a statement released this morning Elan said the losses resulted from a $52 million (€38 million) accounting charge and that adjusted earnings before interest, taxation, depreciation and amortisation - have narrowed sharply from $23 million to $6.9 million.

Elan's revenue rose by 38 per cent to $188.5 million (€137.5 million).

Elan's chief financial officer Shane Cooke said the earlier than expected entry of generic competition to its antibiotic drug Maxipime had led to an accounting write down.

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He said the company's multiple sclerosis drug Tysabri had reported a solid quarter with a 40 per cent grow to around 14,000 patients as of mid-July.

Elan said the revenue from Tysabri sales in US in the second quarter was $46.9 million.

"We are very pleased with the progress we have made in the second quarter of the year with revenue growth of 38 per cent and a reduction of two-thirds in Adjusted EBITDA losses as we continue to carefully manage our cost base," Mr Cooke said.

Elan said it was keeping to its forecast that underlying losses for 2007 would be $50 million.

At 9.15am Elan shares were down 17 cents at €14.20 on the Dublin market.