Elan posted stronger than expected sales growth from the products left over after a massive restructuring intended to revive its ailing fortunes.
The company posted a 31 per cent jump in revenue from retained products to $119.5 million in the third quarter, compared with $91.1 million in the same period of 2002.
"The company is showing good sales momentum in the products it has retained," said Mr Peter Jackson, equities analyst at Bloxham Stockbrokers in Dublin. "That's crucial because if there had been any slippage it would have caused problems going forward," he added.
The value of the company, once the biggest on the Irish stock exchange with a market value of $22 billion, plunged by 90 per cent last year after the US Securities and Exchange Commission launched an investigation of its accounting procedures regarding off-balance-sheet entities.
Recent equity and debt offerings have resolved Elan's immediate balance sheet issues.
The company has issued $460 million in convertible guaranteed notes, which come on top of a $173 million share offering.
Elan said the cash would be used to purchase Liquid Yield Option Notes, which it is committed to redeeming by the end of the year.
Total revenues tumbled 47 per cent to $174.7 million in the latest quarter, largely as it disposed of assets to raise cash. A net loss of $91 million, or a $0.26 loss per diluted share, was larger than expected, and compared with a net loss of $996.4 million, or $2.85 loss per diluted share, in the third quarter of 2002.
Analysts expect the SEC inquiry to conclude before the end of the first quarter of 2004.
A positive decision arising from the SEC probe, which has distracted attention from the company's product pipeline, would be seen as a strong positive for its share price.
The company said its Alzheimer's drug development programme was on track to move into a trial stage before the end of the year.
