Elan reports loss of $13.8m in third quarter

Biotech company Elan reported a $13.8 million loss in the third quarter as costs associated with the proposed takeover by pharmaceuticals firm Perrigo impacted results.

Shareholders are due to vote on the deal, which is worth $8.6 billion, next month.

Elan put itself up for sale in June after rejecting a number of hostile bids from private equity firm Royal Pharma. The deal is expected to close by the end of the year.

The company said it remained in a strong financial position, with almost $1.9 billion in cash and cash equivalents, and no debt. Adjusted earnings before interest, taxation, depreciation and amortisation for the quarter reached $12.1 million, as new royalty arrangements for Tysabri were reflected and costs were monitored.

"The anticipated successful completion of the acquisition by Perrigo will bring to a close more than 40 years of proud and independent history for Elan in Ireland," said chief executive Kelly Martin said.

“We remain focused on presenting the proposed acquisition of Elan by Perrigo to our shareholders at the shareholder meetings in November. In parallel, we continue to manage our company as we have done in quarters and years past.”