Elan's 3rd-quarter 2006 loss widens 74%

Irish biotechnology firm Elan saw widening losses in the third quarter of 2006 after its troubled mutiple sclerosis drug Tysabri (natalizumab; Marketletters passim) was cautiously received by prescribers. The predicted blockbuster, which was co-developed with US drugmaker Biogen Idec, earned $8.1 million worldwide.

The Dublin-based firm's net loss for the period deepened 74.3% on third-quarter 2005, to $117.0 million, which was attributed to a gain of $23.0 million on the sale of Zonegran (zonisamide) in 2005, the inclusion of a share-based compensation expense of $10.9 million in 2006 for the first time, and a $15.0 million license fee payable to Transition Therapeutics for its Alzheimer's disease therapeutic, AZD-103.

Elan's total revenue fell 4.2% to $123.3 million, reflecting a drop in sales of Maxipime (cefepine) due to temporary supply shortages from a third-party supplier. However, in the first nine months of the year, the group's turnover increased 13% to $394.0 million due to a 14% improvement in product income as a result of greater demand.