Bloxham summary of first Q. Not much here, was hoping for update on strategic review...
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Elan - Q1 net loss grows due to one off charges, revenues rise
• Elan today reported a Q1 net loss of $102.6 million or $0.22 per share, compared to net loss
of $85.5 million or $0.18 per share in 08. Analyst expectations were for a loss of $0.14. The
loss comes as the company booked charges for restructuring its biopharmaceuticals
business and US tax charges.
• Total revenues rose to $245.1 million from $214.7 million in the same quarter last year,
behind expectations of $265m.
• Revenue from the Biopharmaceuticals business grew by 28% while revenue from the Elan
Drug Technologies (EDT) business decreased by 14%.
• Gross margin in the quarter was $116.3 million, compared to $103.9 million for the first
quarter of 08. The increased gross margin was driven by significantly higher sales of Tysabri,
which more than offset the loss of gross margin as a result of reduced sales of Azactam,
Maxipime and revenues from EDT.
• In Q1 Tysabri in-market net sales increased by 42% to $227.5 million YoY. The increase
reflects strong patient demand across global markets. At the end of March 2009,
approximately 40,000 patients were on therapy worldwide. These strong sales figures were
also shown by Biogen, Elans partner in the development of Tysabri, in its results yesterday.
Elans quarterly Tysabri revenues of $227 million is marginally below some forecasts, but
Biogen has said its renewed sales efforts may be showing signs of accelerating enrollment.
• The improvement in Elan’s operating performance was offset by the inclusion of other net
charges associated with the adjustments mainly to the Biopharmaceuticals business
announced in February 2009, non-cash tax charges associated with the U.S. business,
partially offset by a gain on a legal settlement. As a result, the net loss increased to $102.6
million.
• Chief Financial Officer Shane Cooke said: “For the full year 2009, we remain on target to
record double digit revenue growth and to be profitable on an adjusted EBITDA basis.”
• Overall the slight miss in Tysabri revenues can be taken as a negative. However the positive
outlook for growth going forward by both Biogen and Elan is a strong positive going forward.
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