Elan posted a slightly better-than-expected first-quarter loss today and said it aimed to reduce its cash outlays after suspending its ill-fated Tysabri multiple sclerosis drug.
Elan said that its net loss almost doubled to $115 million in the first three months of this year from $62 million in the same period of 2004 - but still beat market forecasts.
"After the voluntary suspension of Tysabri in February we took immediate actions which will reduce our operating cash burn by $100 million to about $250 million in 2005," Elan chief financial officer Shane Cooke said.
The company, which had forecast a return to profitability sometime in 2006 on the back of Tysabri, after almost collapsing three years ago, had expected to spend between $160 million and $180 million this year on rolling out the drug.
Shares in Elan have slid over 80 per cent since February 28th when the drug maker suspended sales of its new Tysabri MS treatment following the death of a patient from the rare brain infection progressive multifocal leukoencephalopathy.
Elan said that following Tysabri's suspension it now expected to make a negative earnings before interest, tax, depreciation and amortisation of $240 million to $260 million this year.