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Elan losses widen due to restructuring costs

LOSSES at the pharmaceuticals company Elan widened during the third quarter of the year, as the company counted the cost of internal restructuring.

For the three months to the end of September, Elan posted a net loss from continuing operations of $216.2m (€154.1m), even as revenue rose 10pc to $306.6m.

That compared to a profit of $3.5m for the same period last year.

Company chief financial officer Nigel Clerkin said the company had seen “continued financial momentum” during the quarter.

“We are re-affirming our full-year guidance of adjusted EBITDA greater than $200m. This also reflects our expectation that the Tysabri Italy price dispute is unlikely to be resolved this year, as well as the re-classification of Neotope to discontinued operations.

“The net loss from continuing operations includes charges of $228.6m primarily related to the business restructuring announced during the quarter and the impairment of our investment in Janssen AI.

“The recently completed refinancing of our debt, at a lower coupon and with an extended maturity date of 2019, will see our annual interest expense fall by approximately one-third,” he added.

By 11.40am, shares in Elan were trading at €8.37, up 0.8pc.