Elan loss narrows, confident on Tysabri
By Quentin Fottrell
Of DOW JONES NEWSWIRES
DUBLIN (MarketWatch) -- Irish drug maker Elan Corp. PLC (ELN) Thursday reported a significant narrowing of first quarter losses and reiterated that the relaunch of multiple sclerosis drug Tysabri will help the company to return to profitability.
Elan's net loss narrowed to $20.6 million in the quarter ended March 31 from $115.6 million, while basic and diluted losses per share narrowed to $0.05 from $0.29 a year ago. Sales rose 31% to $134.3 million from $102.7 million.
Chief Executive Kelly Martin said the outlook is good. "We expect the breadth and depth of accomplishments that we have achieved in this first quarter to continue and build momentum as we move through the year," he said in a statement. Investor focus remains on Tysabri, which Elan is selling with its U.S. partner Biogen Idec Inc. (BIIB). The companies temporarily suspended sales of the drug last year on safety concerns. "Once Tysabri is back on the market, momentum will return to the stock," said Goodbody Stockbrokers' Ian Hunter, who rates Elan a buy.
At Wednesday's close, Elan was down 15 cents, or 1.3%, at EUR11.40 on the Irish Stock Exchange in a weak overall market. Traders expect the stock to rise on Thursday; the stock is up from about EUR4.73 this time last year.
Chief Financial Officer Shane Cooke said in a statement, "We remain committed to making Tysabri available for patients in the U.S. and Europe and are confident that, with the financial leverage we've created over the year, revenues from Tysabri will accelerate our return to profitability."
The U.S. Food & Drug Administration's final decision on allowing Tysabri back to the market is due by June 28. Analysts expect the drug to return to the U.S. market several weeks after that date. The FDA's advisory committee earlier this year recommended the drug should be approved when used alone, and be preescribed as first-line treatment, meaning before other treatments have failed.
"The company is now facing a crucial few months ahead on all elements of the business," said Davy Stockbrokers' Jack Gorman, who doesn't rate the stock. "The only substantive issue left for the FDA is whether Tysabri should be indicated for use as a first-line or second-line therapy," he added.
The European Commission is also expected to approve Tysabri after its advisory panel last week recommended it for prescription to relapsing patients. In Europe, the process of setting a price and deciding on governmental health systems' co-payments could take several months, meaning it will take longer for the drug to return to the market than in the U.S.
Multiple sclerosis is a debilitating disease that affects about 2 million people worldwide, most of them young adults. Patients experience symptoms ranging from fatigue and blurred vision to poor muscle control with partial or complete paralysis. While the disease worsens over time, affected people usually have periods of relatively good health, alternating with acute attacks of neurological dysfunction.
Goodbody's Hunter forecasts Tysabri reaching sales of $760 million in 2007, with $460 million stemming from the U.S. and $300 million from Europe. He expects the drug to achieve sales of $1.9 billion in its best year.
Elan and Biogen Idec split sales of Tysabri evenly. The companies already once hoped it would become a blockbuster with annual sales of at least $1 billion, but those hopes were - at least temporarily - dashed when safety problems emerged last year in cases when Tysabri drug was used in combination with another product.
Elan's share price collapsed as a result.
Company website: http://www.elan.com
-Contact: 201-938-5400 End of Story
http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid={8A8DC04B-9A29-4586-A83A-0FBDD730B218}&keyword=
Of DOW JONES NEWSWIRES
DUBLIN (MarketWatch) -- Irish drug maker Elan Corp. PLC (ELN) Thursday reported a significant narrowing of first quarter losses and reiterated that the relaunch of multiple sclerosis drug Tysabri will help the company to return to profitability.
Elan's net loss narrowed to $20.6 million in the quarter ended March 31 from $115.6 million, while basic and diluted losses per share narrowed to $0.05 from $0.29 a year ago. Sales rose 31% to $134.3 million from $102.7 million.
Chief Executive Kelly Martin said the outlook is good. "We expect the breadth and depth of accomplishments that we have achieved in this first quarter to continue and build momentum as we move through the year," he said in a statement. Investor focus remains on Tysabri, which Elan is selling with its U.S. partner Biogen Idec Inc. (BIIB). The companies temporarily suspended sales of the drug last year on safety concerns. "Once Tysabri is back on the market, momentum will return to the stock," said Goodbody Stockbrokers' Ian Hunter, who rates Elan a buy.
At Wednesday's close, Elan was down 15 cents, or 1.3%, at EUR11.40 on the Irish Stock Exchange in a weak overall market. Traders expect the stock to rise on Thursday; the stock is up from about EUR4.73 this time last year.
Chief Financial Officer Shane Cooke said in a statement, "We remain committed to making Tysabri available for patients in the U.S. and Europe and are confident that, with the financial leverage we've created over the year, revenues from Tysabri will accelerate our return to profitability."
The U.S. Food & Drug Administration's final decision on allowing Tysabri back to the market is due by June 28. Analysts expect the drug to return to the U.S. market several weeks after that date. The FDA's advisory committee earlier this year recommended the drug should be approved when used alone, and be preescribed as first-line treatment, meaning before other treatments have failed.
"The company is now facing a crucial few months ahead on all elements of the business," said Davy Stockbrokers' Jack Gorman, who doesn't rate the stock. "The only substantive issue left for the FDA is whether Tysabri should be indicated for use as a first-line or second-line therapy," he added.
The European Commission is also expected to approve Tysabri after its advisory panel last week recommended it for prescription to relapsing patients. In Europe, the process of setting a price and deciding on governmental health systems' co-payments could take several months, meaning it will take longer for the drug to return to the market than in the U.S.
Multiple sclerosis is a debilitating disease that affects about 2 million people worldwide, most of them young adults. Patients experience symptoms ranging from fatigue and blurred vision to poor muscle control with partial or complete paralysis. While the disease worsens over time, affected people usually have periods of relatively good health, alternating with acute attacks of neurological dysfunction.
Goodbody's Hunter forecasts Tysabri reaching sales of $760 million in 2007, with $460 million stemming from the U.S. and $300 million from Europe. He expects the drug to achieve sales of $1.9 billion in its best year.
Elan and Biogen Idec split sales of Tysabri evenly. The companies already once hoped it would become a blockbuster with annual sales of at least $1 billion, but those hopes were - at least temporarily - dashed when safety problems emerged last year in cases when Tysabri drug was used in combination with another product.
Elan's share price collapsed as a result.
Company website: http://www.elan.com
-Contact: 201-938-5400 End of Story
http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid={8A8DC04B-9A29-4586-A83A-0FBDD730B218}&keyword=
posted by Bill at 12:04 AM
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