Elan posts €166m loss despite rise in revenue
THE FAILURE OF a key Alzheimer’s disease drug and costs involved in splitting the company in two dragged Elan to a $216 million (€166.5 million) loss in the third quarter despite an increase in sales.
The company reported a 10 per cent rise in revenue to $306.6 million on the back of continued strong growth in patient numbers taking its key multiple sclerosis drug Tysabri, especially in the US.
However, it booked a $100 million charge related to the splitting off of its early-stage research operations into a new business, Neotope, to be listed in Dublin. That process is expected to be complete by the end of the year.
Elan also took a charge of $117 million relating to the failure of Alzheimer’s drug candidate bapineuzumab in which it has a stake. The balance of exceptional charges was an $11 million milestone payment for another drug.
Analysts said further charges are expected in the fourth quarter.
The company reported that there are now 71,100 patients on Tysabri, 13 per cent ahead of the same time last year. Revenue from sales of Tysabri in Europe were adversely affected by a 12 per cent slide in the value of the euro against the dollar over the past year, the company said.
Elan said last week that it will pay its new chief operating officer, Hans Peter Hasler, a salary of 600,000 Swiss francs (€495,000). Mr Hasler will also be eligible for an annual bonus that’s targeted at 75 per cent of his salary.