Athlone-based pharmaceutical group Elan has today reported net income of $52.3 million for its fiscal third quarter compared to a loss of $83.5 million last year.
For the third quarter of 2009, Elan reported adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of $23.8 million, compared to a loss of $1.6 million in the same period a year earlier.
The company said that the $135.8 million gain arose as a result of a $107.7 million net gain on divestment of the Alzheimer’s Immunotherapy Program (AIP) business to a subsidiary of Johnson & Johnson during the quarter, along with an improved operating performance.
During the three-month period ended September 30th, operating loss declined by $29.8 million to $1.7 million as against $31.5 million in the third quarter of 2008.
Total revenue increased by 6 per cent to $287.0 million, from $270.1 million a year earlier. Revenue from the firm's biopharmaceuticals business grew by 10 per cent while revenue from the Elan Drug Technologies (EDT) business decreased by 3 per cent.
Gross margin rose from €134.4 million to $144.9 million over the year while operating income totalled $102.8 million
"The third quarter of 2009 proved to be a time of significant transformation for Elan. Completion of the Johnson & Johnson transaction and the subsequent refinancing of our balance sheet provide strategic flexibility and financial stability for the company," said Elan CEO Kelly Martin.
"We are now afforded the opportunity to focus on growing Tysabri and EDT businesses, advancing our bioneurology pipeline and investing in unique science while having fundamentally reduced business risk across the enterprise," he added.
Recorded sales of the company's flagship product Tysabri increased 16 per cent to $191.4 million from $164.5 million in the third quarter of 2008, offsetting reduced sales of Azactam and Maxipime.
The company saw a 19 per cent rise in global in-market net sales of Tysabri to $281.6 million as against $237million in the same quarter last year.
Shares in both Elan and in Biogen Idec, it's US parter for Tysabri fell in trading yesterday after Biogen executives confirmed the drug carries an increased risk of triggering a potentially fatal brain disease over time.
Biogen executives said the company had now determined that the risk of patients contracting progressive multifocal leukoencephalopathy (PML) does increase . It said it was in contact with the US regulator, the Food and Drug Administration (FDA), on changing the label on the drug's prescribing information to reflect the new conclusion.
Shares in both companies fell by more than 2 per cent yesterday following Biogen's announcement. In Dublin this morning, Elan shares were up 2 per cent or 10c to €4.49
Biogen Idec yesterday also announced its latest results. It said third-quarter profit rose 35 per cent on higher sales of the multiple sclerosis drug.
Third-quarter net income increased to $278 million, or 95 cents a share, while revenue jumped 2.8 per cent to $1.12 billion.
Revenue from sales of Tysabri rose 21 per cent to $207 million in the quarter, the company said.
