("UPDATE: Elan Confirms Outlook As Quarterly Net Loss Narrows,"
at 0748 GMT, misstated its current listings in the 6th paragraph.
The same mistake appeared in an item at 0647 GMT. The correct
version follows:)
--Elan confirms full-year guidance
--Says EDT sale to close in second quarter
--Tysabri sales up 31% in latest three months
(Adds detail in fifth, seventh, ninth and 10th paragraphs.)
By Sten Stovall
DOW JONES NEWSWIRES
Irish drug maker Elan Corp. PLC (ELN) Wednesday reaffirmed its
full-year guidance despite recording a net loss in the second
quarter, and said a transformational deal to sell its drug
technology unit EDT to U.S.-based Alkermes Inc (ALKS) remains on
track.
The sale will allow Elan to fund medicine innovation with its
remaining BioNeurology business and to pay down debt.
The company's new chief finance officer, Nigel Clerkin, said the
sale will "transform Elan's balance sheet by moving us from net
debt to net cash and investments."
He added that, even though there will no longer be any EDT
contribution in the fourth quarter, Elan reaffirms its full-year
guidance of adjusted earnings before interest, taxes, depreciation
and amortization to exceed $200 million. It also expects the
BioNeurology business to achieve adjusted Ebitda in excess of $135
million for the full year, up from its previous guidance of over
$100 million.
Under the deal, announced in May, EDT and Alkermes will be
combined under a new holding company incorporated in Ireland. The
group, in which Elan will have a 25% stake, will focus on products
dealing with the brain and is expected to have annual revenue of
around $450 million from 25 products, including treatments for
schizophrenia and pain.
Dublin-based, New York-listed Elan reported a narrowed net loss
in the three months to end-June of $47.1 million, from a $217.9
million net deficit a year earlier. Elan delisted from the London
Stock Exchange in 2009.
The company said its latest net quarterly loss includes a net
loss on equity method investments of $39.1 million relating mainly
to the investment in Johnson & Johnson's (JNJ) Janssen
Alzheimer Immunotherapy. An impairment charge of $5.1 million was
also booked for the planned closure of Elan's King of Prussia, Pa.,
site by the end of September and transferral of current projects
and technology capabilities to other locations.
Sales for the second quarter were up 24% over the period, to
$333.5 million.
During the quarter, there was a 31% jump in sales of flagship
multiple sclerosis treatment Tysabri, which is sold by Elan and
U.S.-based partner Biogen Idec Inc. (BIIB), to $389.0 million. That
growth mainly reflects increased patient demand globally and a
higher price in the U.S., along with favorable foreign currency
movements, Elan said.
Excluding the EDT business, Elan said it now expects total
revenues to be around $1 billion this year, driven by continued
Tysabri growth, with turnover doubling over the next five years to
some $2 billion in 2016.
Elan shares, which have more than doubled so far this year,
opened 0.9% higher at EUR8.60.
-By Sten Stovall, Dow Jones Newswires; +44 207 842 9292;
sten.stovall@dowjones.com