Elan has posted a smaller than expected first quarter loss of $0.08 per share, and said it was confident revenues form its Tysabri drug would accelerate a return to profitability.
Revenue for the first three months of the year came in at $134.3m, which was ahead of analysts' forecasts of $127.1m. Forecasts for earnings per share had been a net loss of $0.21 cent per share.
Elan suspended sales of multiple sclerosis drug Tysabri in February 2005 following a link with a rare but life-threatening side effect.
Analysts expect Elan to get the green light this year to relaunch the drug after safety reviews.
Financial chief Shane Cooke said revenues for the quarter are up 31% and the net loss is down 71%, compared to last year, due to improved operating margins, and the costs associated with the temporary suspension of Tysabri in February 2005, offset by the impact of including the cost of share-based compensation for the first time.
He said he expects Tysabri to return in the third quarter and that it will be re-launched on a country by country basis, to start with Germany.
He added that he is confident that revenues from Tysabri will speed up the company's return to profitablility.
Mr Cooke said that he was comfortable with forecasts for a full year loss before interest, tax, depreciation and amortisation of €150m - €175m, excluding revenues from the suspended Tysabri.
Elan's chief executive Kelly Martin said the company's accomplishments in the first quarter will continue and build momentum during the year.
Elan shares closed down eight cent at €11.32 in Dublin.
