Drug company Elan said today losses have widened due to the cost of disposals, but revenue from retained products rose slightly.
The Athlone-based company reported a net loss of $117.6 million in the second quarter compared with a net gain of $17.3 million in the same quarter in 2003. In the first six months of 2004, Elan's losses amounted to $179.8 million compared with $110.2 million last year.
Total product revenue for the second quarter of 2004 was $96.5 million compared to $183.9 million in the second quarter of 2003, a decrease of 48 per cent. Much of the decline is due to the sale of products as part of the completed recovery plan.
Revenue from retained products was $64 million, an increase of 3 per cent on the same period last year, but profit margin eroded from 58 per cent last year to 54 per cent this year.
The company, which faced a debt crisis last year, said it had cash of $677 million at the end of June, after the successful payment of $391.8 million against the EPIL II loan note.
Mr Shane Cooke, Elan's chief financial officer, said the company's income was still being adversely affected by restructuring costs. Of the $118 million net loss this quarter, $24 million is attributed to the sale of businesses and the fluctuating value of that portfolio.