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| Elan and its partner Biogen Idec re-launched the MS drug Tysabri on the US market last month. |
Irish drugs firm Elan Corporation, plc today announced its second quarter 2006 financial results.
The company says net losses were reduced by 37% to $90.5m. Revenues were up 15% to $136.4m. Product revenue increased 17% to $130.8m, with Maxipime and Azactam sales growing strongly. Sales of pain treatment Prialt, launched in the US last year, rose from $1.8m to $3m. Manufacturing revenue grew by 19% to $47.7m. Contract revenue dropped 20% to $5.6m.
Operating costs rose by 6% to $96m, mainly because of the inclusion of share-based compensation for the first time. R&D costs related to Tysabri fell as its safety evaluation was completed.
Commenting on Elan's business, Kelly Martin, Elan's president and chief executive officer, said, "The second quarter, once again, reflected our continued discipline and focus on delivering tangible business results. We recently received approval in the US and Europe to make Tysabri available to patients suffering from MS. We have been diligently working to have this effective treatment available to patients and their physicians. We believe that Tysabri will play a significant role as a treatment alternative for patients suffering from this chronic and debilitating disease.
We also have made important advances in all areas of our business, recently demonstrated by our alliances with Abbott in nanotechnology and Archemix in autoimmune. We continue to actively evaluate and pursue both internal and external opportunities that will reinforce our strategic focus, strengthen our capabilities and generate value as we move the enterprise forward."
Commenting on Elan's second quarter financial results, Shane Cooke, Elan's executive vice president and chief financial officer, said, "We are very pleased to report another solid quarter with strong progress across all of our business and development activities and a 37% reduction in net losses. We reported a 15% increase in revenues, improved operating margins and, excluding costs and revenues associated with Tysabri, adjusted EBITDA was positive for the third consecutive quarter.
Since the end of the quarter, we have launched Tysabri in Germany, Ireland, UK and Sweden and re-introduced it in the US." Mr. Cooke added, "With the approval of Tysabri and the improvements we have made to the business, we are now entering into a new and exciting phase in the development of Elan. We are confident that revenues from Tysabri will drive our return to profitability."
