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 Tidal launch: The most pretentious lines from Alicia Keys' valedictory speech
- 2 Britain First 'acting like Ukip henchmen' by invading meeting of activists in revenge for pub protest against Nigel Farage
- 3 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 4 Tidal: Jay Z's Spotify rival streaming service criticised for making wealthy artists even richer
- 5 Brixton squat flats now costing up to £3k per month show how out of control rent is in London
Britain First 'acting like Ukip henchmen' by invading meeting of activists in revenge for pub protest against Nigel Farage
Costa Concordia: Shipment of Mob drugs was hidden aboard cruise liner when it hit rocks off Italian coast, investigators say
Brixton squat flats now costing up to £3k per month show how out of control rent is in London
A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Turkey power cut: Prime Minister says nationwide blackout could be caused by terrorists
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...
£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...
Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...