THE INVESTMENT COLUMN: Elan tries to put the past behind it
Wednesday 09 February 2005
It had essentially mortgaged its biotech investments, and when they collapsed in value, Elan came to the brink of bankruptcy. New management had to ensure a piece-by-piece unpicking of those collaborations, a massive fire-sale of assets, and the $85m (pounds 46m) settlement of investor lawsuits which alleged that Elan misled the market.
Yesterday, a last piece of the jigsaw was in place with the agreement of a $15m settlement with the US regulator, the Securities and Exchange Commission.
So what is Elan now? It has sales from prescription jabs Azactam and Maxipime for pneumonia and other infections, and income from contract manufacturing for other drug companies. But it is three new products which ought to drive growth at the company. Tysabri is a new treatment for multiple sclerosis, developed in collaboration with Biogen Idec of the US, and take-up has been strong since the drug's launch in November. Some analysts expect it to have sales of $3bn a year when it becomes well-established. It could also be extended for use in rheumatoid arthritis.
A second drug, Prialt, for chronic pain, was also launched last year. And then there is work on Elan's potential new Alzheimer's disease drug, which has suffered setbacks but could come to fruition around the end of the decade.
At the company's full-year results yesterday, Elan reiterated its confidence in returning to profit by the end of 2006. There was a warning of higher costs than the market had expected, but generally the results helped in the process of restoring confidence. Hold.
- 1 Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
- 2 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 3 Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 4 Alex Salmond: 'The rocks would melt with the sun before I'd ever set foot in the House of Lords'
- 5 Ice Bucket Challenge: US firefighter Tony Grider dies after participating in charity craze near power lines
'The Fappening': Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
The Fappening: Jennifer Lawrence leaked 4Chan sex video branded 'fake' by forum users
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...