Irish biotech company Elan re-affirmed its full-year guidance this morning after reporting a 24 per cent jump in revenue for the second quarter of the year.
Elan's revenue for the three-month period rose to $333.5 million, from $268.9 million in the same period in 2010. This revenue growth, combined with a 6 per cent reduction in operating expenses, led to adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) – a measure of cashflow – almost trebling to $59.7 million (€41.2 million).
The Dublin-headquartered firm's net loss shrank to $47.1 million, from $217.9 million in the equivalent quarter in 2010. The net loss for the second quarter of 2011 included a loss on equity method investments of $39.1 million. This related primarily to an investment in Janssen Alzheimer Immunotherapy.
The company's BioNeurology business delivered revenue growth of 27 per cent in the second quarter, driven by a 30 per cent uplift in recorded sales of its multiple sclerosis drug Tysabri.
The sale of Elan's EDT business, announced earlier this year, is on track to close in the third quarter, it said. The completion of this transaction will “transform” Elan’s balance sheet, moving it from a net debt position to “net cash and investments”.
Chief executive Kelly Martin said the company sees a “multitude of opportunities” to create short- and long-term value from “high quality science” while at the same time driving growth.
“We remain focused on driving both top and bottom line growth, being a consistent yet disciplined investor in science and the clinical application of that science, and enabling our efforts to be scalable by maintaining a flexible and dynamic infrastructure that can scale as our science matures,” Mr Martin said.
