Elan drops 7pc on higher Q1 loss, Tysabri sales
ELAN'S first quarter loss more than doubled and unspectacular sales from the performance of the company's multiple sclerosis treatment Tysabri following its relaunch sent the shares down over 7pc to close at €10.40 in Dublin yesterday.
The net loss widened to $93m from a loss of $33.3m a year earlier when the company benefited from a once-off gain of $44.2m related to the sale of European rights to the Prialt pain relief drug.
Higher debt costs included an $18.8m early retirement charge, the company added in a statement.
Analysts
Tysabri, which Elan co-sells with its research partner Biogen Idec, generated sales of $48.4m - less than some analysts had expected.
Some 12,500 patients have enrolled for Tysabri therapy, a 30pc increase in two months the company said yesterday.
Tysabri was reintroduced in July after sales were suspended when two patients taking it with Biogen's older Avonex treatment died after contracting a rare nerve disorder.
Elan announced a bigger-than-expected loss per share of $0.20 in the three months to end March versus a loss of $0.08 a share in the same period of 2006.
Davy analyst Jack Gorman described them as "broadly in line with forecasts".
Goodbody analyst Ian Hunter said that, even excluding the $18.8m net cost of cutting debt, earnings were 30.8pc behind what he had expected.
"Revenue, at $176m, was 3.2pc ahead of forecast, but the gross margin was slightly behind," Hunter said, pointing to sales, administrative and research costs that were 15pc higher than he had anticipated for the quarter.
Analysts said Elan is looking to move its Alzheimer's treatment from Phase II to Phase III. The shares fell 7.3pc in Dublin.
Ailish O'Hora
http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1818464&issue_id=15547
ELAN'S first quarter loss more than doubled and unspectacular sales from the performance of the company's multiple sclerosis treatment Tysabri following its relaunch sent the shares down over 7pc to close at €10.40 in Dublin yesterday.
The net loss widened to $93m from a loss of $33.3m a year earlier when the company benefited from a once-off gain of $44.2m related to the sale of European rights to the Prialt pain relief drug.
Higher debt costs included an $18.8m early retirement charge, the company added in a statement.
Analysts
Tysabri, which Elan co-sells with its research partner Biogen Idec, generated sales of $48.4m - less than some analysts had expected.
Some 12,500 patients have enrolled for Tysabri therapy, a 30pc increase in two months the company said yesterday.
Tysabri was reintroduced in July after sales were suspended when two patients taking it with Biogen's older Avonex treatment died after contracting a rare nerve disorder.
Elan announced a bigger-than-expected loss per share of $0.20 in the three months to end March versus a loss of $0.08 a share in the same period of 2006.
Davy analyst Jack Gorman described them as "broadly in line with forecasts".
Goodbody analyst Ian Hunter said that, even excluding the $18.8m net cost of cutting debt, earnings were 30.8pc behind what he had expected.
"Revenue, at $176m, was 3.2pc ahead of forecast, but the gross margin was slightly behind," Hunter said, pointing to sales, administrative and research costs that were 15pc higher than he had anticipated for the quarter.
Analysts said Elan is looking to move its Alzheimer's treatment from Phase II to Phase III. The shares fell 7.3pc in Dublin.
Ailish O'Hora
http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1818464&issue_id=15547
posted by Bill at 8:23 PM
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