Elan has dropped its plans to sell its drug delivery unit due to global turmoil, the company said this morning as it posted a slightly higher than expected third-quarter loss.
Earlier this month it was reported that the company's plan to sell Elan Drug
Technologies (EDT) had been delayed by the credit crisis, but some discussions were continuing.
Elan said this morning it had completed an evaluation of the strategic options for the separation of EDT, adding a number of parties had expressed "considerable interest".
"Given the recent dislocation and uncertainty in the financial and credit markets, Elan has decided to retain the EDT business for the foreseeable future and to put in place structures to allow EDT to develop and grow as an independent wholly owned subsidiary of Elan," it said in a statement accompanying its results.
Elan recorded a loss per share of 18 cents in the three months to the end of September versus a 19 cent loss a year earlier.
Its total quarterly revenue rose 53 per cent to $270.1 million, helped by sales of its multiple sclerosis drug Tysabri. That compared with analysts' estimates of $261 million.
The company reiterated its 2008 guidance target. "Elan is on track to record revenues approaching $1 billion and adjusted earnings before interest, tax, depreciation and amortisation losses of less than $50 million for the full year," Chief Financial
Officer Shane Cooke said.
Shares in Elan were trading 5.6 per cent higher this morning outperforming a 1.7 per cent rise on the wider Dublin market. Its shares in London were 7.3 percent firmer.
Elan said Tysabri, being developed with US partner Biogen Idec, was fast approaching blockbuster status, which it said was defined as having revenues exceeding $1 billion on an annual run-rate basis.