Elan says interim results show recovery

Elan today revealed interim first-half results showing a 62 per cent drop in the operational losses coupled with a revenue fall of 42 per cent.

Chairman Garo Armen said total revenue was $445.5 million compared to $773.5 million for the first half of 2002, indicating the recovery plan was working. Elan filed its results under Irish GAAP, or Generally Accepted Accounting Principles, with the Irish and London Stock Exchanges.

He said the fall in revenue was due to the sale of non-core businesses under the recovery plan.

Mr Armen said Elan and its partner Biogen were working with the US and European regulatory authorities to determine the regulatory path forward for Antegren to be used for treatment for Crohn's disease. Trials of the product would continue he added.

The loss over the first six months of the year was $257 million, a 62 per cent drop on the first half of 2002 - which saw a loss of 672.4 million.

Included in the loss for this year were exceptional costs relating to the recovery plan, Mr Armen said.

The value of fixed assets decreased by $718.1 million to $2.55 billion due to the sales of primary care franchises and other businesses.

Under Elan's recovery plan, over $1.7 billion in assets has been divested. Elan has set a target of another $400 million to be raised from asset divestitures and investment disposals by year end.