Drugs company Elan this morning reported a much wider third-quarter loss than expected as supply shortages of its antibiotic Maxipime dented revenues.
However, the Athlone-based firm said it expected to beat its full-year targets.
Elan posted a third quarter net loss of $117m, an increase from the $67m reported the same time last year. The quarter saw the redistribution of its multiple sclerosis drug Tysabri for the first time since it was withdrawn in February 2005.
The company said its net loss for the nine months to the end of September was $240.8m, a reduction of 26% over the same time last year.
Total revenue for the third quarter to the end of September fell to $123.3m from $128.6m in the third quarter of 2005. Elan said this was as a result of lower revenues from its Maxipime drug due to temporary supply shortages from a third party supplier. Revenue from Maxipime was 22% lower than in the same quarter of 2005.
Costs related to developing Elan's pipeline of potential Alzheimer's treatments also affected the results, the company said, while analysts had already expected the cost of relaunching its Tysabri multiple sclerosis drug would mean a bigger loss.
Tysabri returned to the market in July after it was suspended over links to a rare and sometimes fatal brain disease. Elan is partnered on the drug with US firm Biogen Idec. Tysabri had sales of $8.1m in the third quarter.
Its sales in the US contributed $5.4m to Elan's revenues but the company booked a $5.7m loss on sales in Europe, where Biogen is responsible for distribution and Elan only has a share of the profit or loss.
EU sales of the drug reached $2.7m in the three months, but that was offset by operating expenses of $14.7m, leading to a $12m loss shared between the two companies.
Elan, which is banking on Tysabri becoming a blockbuster MS drug and is testing it as a potential treatment for chronic inflammatory bowel disorder Crohn's disease, said it expected to beat its own full-year guidance, however.
'We are confident that revenues for 2006, excluding any revenues from Tysabri, will exceed $500m' Elan's Chief Financial Officer Shane Cooke said.
'We also expect EBITDA losses for the year to be less then previously guided due to solid revenue growth and improved operating margins,' he added.
Analysts pointed out that the company had continued to keep a tight lid on overall costs and that Tysabri sales were better than some had expected.
Elan said it expected sales of its multiple sclerosis treatment Tysabri, which was relaunched in July, to accelerate quickly in the fourth quarter of this year.
'We will see revenues pick up very quickly in this quarter versus the last quarter,' Elan Chief Financial Officer Shane Cooke told reporters during a conference call.
Chief Executive Kelly Martin said the company was very encouraged by the fact that 75% of patients opting to take Tysabri had switched from other therapies.
Elan shares were down 12 cent to €11.98 in Dublin this evening.
