Pharmaceutical company Elan has reported an improved performance for the second quarter of this year, though its financial results were affected by the $206.3m it paid to settle claims after a US investigation of the way it marketed a medicine called Zonegran.
Elan reported a net loss of $213m for the three months to the end of June, up from a $68.2m loss a year earlier. But, excluding the US settlement, the net loss was more than halved to $20m, helped by a 14% reduction in day-to-day costs.
Revenue fell by 4% to $268.9m, mainly due to a 29% fall in revenue from its Elan Drug Technologies (EDT) business, which the company said was mainly due to the timing of drug shipments. But sales of Elan's multiple sclerosis drug Tysabri rose 19% from a year earlier to $207.4m, with 2,400 more patients now using the treatment.
For the first six months of the year, revenue is ahead 10% to $579.4m, with Tysabri sales 22% ahead.
Elan said it was continuing to look at the possibility of spinning off its EDT business, and would make a decision 'over the next several months'.
Meanwhile, the Wall Street Journal has reported that Elan investor Ib Sonderby is launching a campaign to shake-up the company's board and management, claiming that 'ineptitude and mismanagement' have destroyed shareholder value in recent months.
He controls about two million shares, or 0.3%, of the firm. Among his claims, in a letter to Elan's board, is that chief executive Kelly Martin has misled investors.
In a statement Elan said its board and independent directors had taken steps to address shareholder concerns and that many of Mr Sonderby's complaints had already been addressed. Elan said that on other matters the shareholder is 'seriously misinformed'.
Elan shares down 0.2% at €3.87 by afternoon in Dublin.
