Monday 23 October 2017

Elan shares up 3pc after drug firm's Q2 revenue passes $56m

Kelly Martin, CEO of Elan pictured at the AGM in the Conrad Hotel. Pcture; GERRY MOONEY. 24/5/12
Kelly Martin, CEO of Elan pictured at the AGM in the Conrad Hotel. Pcture; GERRY MOONEY. 24/5/12
Colm Kelpie

Colm Kelpie

SHARES in drug company Elan were up 3pc yesterday morning after it said revenue hit more than $56m (€42.2m) between April and June.

The company put itself up for sale last month in a last-ditch attempt to fend off a hostile takeover bid from the US's Royalty Pharma.

Elan chief executive Kelly Martin said they were "focused squarely" on a possible sale.

"The board and executive management are in complete alignment with regard to exploring all opportunities to maximise shareholder value," he said in a statement posted to the Irish Stock Exchange.

"We will continue to advance the process and communicate the outcome to the marketplace at the appropriate time."

Strong

The company said its second-quarter results had been impacted by the completion of the sale of its MS drug Tysabri, as well as a $1bn share buyback and other transactions.

The Dublin-headquartered firm said its net income for the quarter of $2.3bn reflects the gain from the Tysabri transaction.

"We remain in a very strong financial position, and ended the quarter with over $1.9bn in cash and cash equivalents, and no debt," said chief financial officer Nigel Clerkin.

By mid-morning, Elan's share price had risen 3pc to €10.88.

Royalty's final bid had offered $13 in cash per share and added a clause known as a contingent value right that could have added $2.50 per share if Tysabri hit certain sales milestones.

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