Actelion posts 85.6 Swiss franc loss for first nine months of 2011

Switzerland-based Actelion (ATLN: VX) recorded an operating loss of 85.6 million Swiss francs ($95.5 million) for the first nine months of 2011, compared with a profit of 426.9 million in the like 2010 period, as a result of a provision of $577 million announced earlier this year relating to the litigation with Asahi Kasei Pharmaceuticals over the now dropped development of fasudil (The Pharma Letter June 30). Actelion intends to appeal the award once the superior court completes its post-motion review. Net loss for the period came in at 180.7 million francs versus a profit of 359.5 million francs. The company’s share price fell 7.4% 31.49 euros in morning trading.

In order to better compare the company's underlying performance, Actelion – Europe’s largest biotechnology company - continues to report Non-GAAP EBIT, which excludes stock-based compensation expense, amortization and depreciation as well as other one-off elements such as the above-mentioned litigation provision that distort comparison. Non-GAAP EBIT for the first nine months of 2011 was 470.3 million francs, an increase of 11% in local currencies compared to the same period last year.

Net revenues were down 7% in Swiss franc terms at 1.37 billion francs (+7% in local currencies) for the reporting period. Jean-Paul Clozel, and chief executive of Actelion commented: "In the third quarter of 2011 Actelion's products have continued to perform well in a changing market place. This is very satisfactory given the pricing pressure that continues globally and the more competitive endothelin receptor antagonist market in the USA."