Shares in pharmaceutical group Elan soared almost 5% today in Dublin after the company said it was optimistic it would return to profitability by 2006.
The Athlone-based Elan this morning reported a slightly worse-than-expected third quarter net loss per share of 28 cents. The company said it made a loss of $107.8m compared with a loss of $91m the same time last year.
Its revenues for the three month period from July to September amounted to $101.1m, a 23% fall from the $131.2m reported in Q3 2003 and well below expectations of $110.3m.
Elan said the decline was mainly due to the divestment of a number of products in the first half of the year, mainly the company's European business and Zonegran.
The company's cash pile had grown slightly to $680.3m by the end of September compared to $677m in the previous quarter, it said.
Commenting on its pipeline, Elan said its focus was 'on preparing for a successful launch of Antegren'. It hopes to bring this on the market early next year. Elan and its co-developer Biogen, is waiting for regulatory approval for the drug as a treatment for multiple sclerosis after it was fast-tracked by the US Food and Drug Administration.
Elan said the results of a Phase 3 study into its potential as a treatment for Crohn's disease will be available in the first half of next year. It also said that it was investing for the successful launch of its painkiller drug Prialt.
'We continued to report net losses this quarter as we resolve outstanding legacy issues, streamline the balance sheet, and most importantly, invest for a successful launch of Antegren and Prialt,' commented Shane Cooke, Chief Financial Officer.
'We are optimistic that the dedication, commitment and financial resources that we have invested in these products will be reflected in a return to profitability in the 2006 timeframe,' he added.
Elan shares closed up 62 cent at €20.28 in Dublin.
