Elan loss widens after cash set aside for Zonegran
Published 22/07/2010 | 14:40
Elan reported a wider second-quarter loss after it set aside $206.3m to settle US government charges linked to the sale and marketing of the Zonegran epilepsy treatment.
The company, Ireland’s largest drugmaker, had a loss of $213.1m in the three months ended June 30, compared with a loss of $68.2m a year earlier, it said in a Business Wire statement today.
Revenue fell to $264.5m as falling demand for older drugs wasn’t enough to offset a surge in sales of the multiple sclerosis medicine Tysabri.
Separately, Ib Sonderby, who wrote to the company’s board yesterday complaining of “ineptitude and mismanagement” at the helm of the company, is “seriously misinformed,” Elan spokeswoman Gemma Gilligan said in an interview.
The Wall Street Journal reported today that Sonderby accused the board of failing to “monitor” Chief Executive Officer Kelly Martin, who Sonderby alleges “publicly mislead investors, destroyed collaborations with Elan’s corporate partners” and “extracted millions of dollars in compensation.”
“Over the last several years, Elan’s Board, including the independent directors, have met with investors frequently and taken significant steps to address concerns,” Elan’s Gilligan said. “Many of the matters Mr Sonderby raises in the letter have been addressed previously.”