Elan Corporation stuck to its full-year goals today and said it continued to invest cautiously in its suspended Tysabri drug after posting a second-quarter loss that was close to what the market had expected.
The company posted a net loss for the three months to the end of June of $0.35 per share, worse than the $0.30 loss in the same period last year but slightly better than the median forecast of a Reuters poll for a $0.37 loss.
At $118.6 million, revenues were also close to the $117.5 million predicted by analysts who had said, however, that given the uncertainties over Tysabri they would pay closest attention to cost-cutting measures at Elan.
"We are cautiously optimistic that, with continued strong revenue growth and careful and disciplined cost management, this business, excluding Tysabri, will get to our target of break-even on an EBITDA basis by the end of 2005," the company said in a statement.
Elan said it continued to invest prudently in its Tysabri multiple sclerosis drug and remained committed to reintroducing the treatment after it was suspended in February following the death of a patient.
The company, which in the first quarter spent more on selling, general and administrative costs than it received in revenues, said that in the three months that followed the costs came in at $91.4 million, or 77 per cent of sales.
Shares in Elan have slumped almost 90 per cent in the wake of Tysabri's withdrawal but have since recovered some ground thanks to management's confidence the drug will make a comeback. The shares were up 1.5 per cent at €6.75 in Dublin this morning.