Monday 24 July 2017

Takeover costs behind Elan's $13.8m loss

Elan chief executive Kelly Martin
Elan chief executive Kelly Martin
John Mulligan

John Mulligan

Irish drug company Elan has reported a $13.8m (€10m) net loss for the last quarter, primarily due to costs associated with the long-running takeover battle for the business.

Elan is set to be acquired by US-based Perrigo in a €6.5bn deal.

Releasing third-quarter results, Elan said its revenue totalled $48.6m in the period. Virtually all of that – $48.1m – was accounted for by royalties of 12pc of global net sales of multiple sclerosis treatment Tysabri.

Elan sold its 50pc stake in Tysabri for $3.25bn earlier this year to the drug's other owner, US-based Biogen Idec. That deal sees it receive royalties in perpetuity from Tysabri sales.

In July, Elan said it was recommending shareholders accept an $8.6bn offer for the company from Perrigo. That deal will be voted on by shareholders next month and is expected to be finalised by the end of the year. It will also result in Elan being delisted from the Irish Stock Exchange.

"We remain focused on presenting the proposed acquisition of Elan by Perrigo to our shareholders at the shareholder meetings in November," said Elan chief executive Kelly Martin yesterday.

Elan ended the quarter with $1.9bn in cash and cash equivalents.

Irish Independent

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