Tysabri still the key to improving Elan
DRUGMAKER Elan recently released better-than-expected results for the first quarter after the company narrowed losses and grew sales of its antibiotic Maxipime.
The net loss was down to $33.3m, or 8c a share, from $115.m, or 29c a year earlier while revenue was up 31pc to $134.3m.
Analysts surveyed by Bloomberg had forecast a loss of $93.3m, or 21c, on revenue of $125m.
Elan, which is working with its research partner Biogen Idec to get its multiple sclerosis drug Tysabri back onto the market following its withdrawal last year after fatal side-effects, reported that sales of its Maxipime injectable antibiotic more than doubled to $44.7m after the company solved a supply shortage.
Revenue from the manufacturing business rose to $52.6m from $44.7m.
Having said that, the focus is still on the Tysabri saga. The Federal Drug Administration (FDA) is to decide before June 28 on whether Tysabri can be sold again in the US.
In Europe, Tysabri is likely to be sold in Germany first followed by the Nordic countries, the UK and the rest of the continent.
Most analysts believe that Tysabri will get FDA approval but with a restrictive risk management programme.
According to broker Piper Jaffray, the programme is likely to be both labour intensive and, potentially for those without insurance, cost prohibitive.
And following the expected approval, there will also be a lag period during which the shares are likely to be flat or drift.
Brokers are also advocating a wait and see approach. Shares in Elan are trading at the $14.80 level currently.
According to Goodbody Stockbrokers, on its current projections for Tysabri, based on MS sales only and looking at valuations for potential blockbusters of between 4.5x and 5x peak sales, these multiples would equate to a share price, including the core business, of beteen $15.51 and $16.52.
The broker has just issued an add recommendation on Elan with a price target of $16.50.
AILISH O'HORA
http://www.unison.ie/irish_independent/stories.php3?ca=35&si=1611578&issue_id=14023
The net loss was down to $33.3m, or 8c a share, from $115.m, or 29c a year earlier while revenue was up 31pc to $134.3m.
Analysts surveyed by Bloomberg had forecast a loss of $93.3m, or 21c, on revenue of $125m.
Elan, which is working with its research partner Biogen Idec to get its multiple sclerosis drug Tysabri back onto the market following its withdrawal last year after fatal side-effects, reported that sales of its Maxipime injectable antibiotic more than doubled to $44.7m after the company solved a supply shortage.
Revenue from the manufacturing business rose to $52.6m from $44.7m.
Having said that, the focus is still on the Tysabri saga. The Federal Drug Administration (FDA) is to decide before June 28 on whether Tysabri can be sold again in the US.
In Europe, Tysabri is likely to be sold in Germany first followed by the Nordic countries, the UK and the rest of the continent.
Most analysts believe that Tysabri will get FDA approval but with a restrictive risk management programme.
According to broker Piper Jaffray, the programme is likely to be both labour intensive and, potentially for those without insurance, cost prohibitive.
And following the expected approval, there will also be a lag period during which the shares are likely to be flat or drift.
Brokers are also advocating a wait and see approach. Shares in Elan are trading at the $14.80 level currently.
According to Goodbody Stockbrokers, on its current projections for Tysabri, based on MS sales only and looking at valuations for potential blockbusters of between 4.5x and 5x peak sales, these multiples would equate to a share price, including the core business, of beteen $15.51 and $16.52.
The broker has just issued an add recommendation on Elan with a price target of $16.50.
AILISH O'HORA
http://www.unison.ie/irish_independent/stories.php3?ca=35&si=1611578&issue_id=14023
posted by Bill at 12:00 AM
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