Elan touts rising Tysabri sales as losses widen

Elan reported today that the company recorded a wider loss in the first quarter due to restructuring charges for realignment of its biopharmaceuticals unit and U.S. tax charges, but Tysabri sales continue to rise. Overall, Q1 revenue rose 14 percent to $245.1 million from $214.7 million recorded in the same period last year.

The Ireland-based biotech said that the increase in revenue was led by sales of multiple sclerosis drug Tysabri rose to $158.7 million in the first quarter. This despite partners Elan and Biogen Idec having now reported six cases of PML among Tysabri patients. According to Elan, the number of Tysabri patients has risen 48 percent in the last year and sales have increased 42 percent to $227.5 million. About 40,000 people around the world now use the drug, with every 10,000 representing $100 million in profits for the company.

But that wasn't enough for the biotech--whose shares plunged 72 percent last year--to avoid even wider losses. Elan recorded a net loss of $102.6 million in the first quarter, an increase over the net loss of $85.5 million in losses the company recorded the same period last year. Without the tax charge, Elan said its losses would be have been $88.6 million.

CFO Shane Cook said in today's statement he's pleased with the "solid start" to the year and the company "is confident it will see a reacceleration to a stronger growth trend."As for its strategic review? "Given our pipeline and size of potential coverage, the best option for Elan would be to have a partnership with a large pharmaceutical company that would allow us access to existing global infrastructure," CEO Kelly Martin told a conference call, Reuters reports.

- check out the Elan release
- read the Reuters article

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