DRUGMAKER ELAN says it is on track to reach a target of 100,000 patients taking its multiple sclerosis drug Tysabri, after sales of the product grew 31 per cent year- on-year in the second quarter.
Some 61,500 patients are now being treated with Tysabri, with the number up 15 per cent on last year. Sales of the drug, in which Elan has a 50-50 partnership with Biogen, reached $389 million, with the revenues boosted by increased pricing in the US and favourable currency exchange movements in Europe.
The acceleration in sales of Tysabri drove an overall 24 per cent climb in revenues at Elan to $334 million, beating analysts’ forecasts.
Adjusted earnings before interest, tax and write-offs almost trebled to $59.7 million, compared to $21 million in the second quarter of 2010.
Net losses reduced to $47.1 million, compared to a net loss of $218 million in the same period last year. The figure includes a $39 million net loss on equity investments, which primarily relates to the company’s stake in Janssen Alzheimer Immunotherapy.
The planned sale of its Athlone-based EDT business will allow it to pay down about $500 million in debt, the company said.
“It was a very solid quarter for Elan. We had growth on the top line and growth on the bottom line,” said chief executive Kelly Martin. The company is confident that revenues from Tysabri will continue to accelerate.
The number of patients worldwide being treated for MS reached 590,000 last year and is expected to reach 750,000 by 2015.
It is estimated that about 350,000 of these will test negative for the JC virus, which causes the development of progressive multifocal leukoencephalopathy, a deadly brain disease that is a potential side effect of taking Tysabri.
A blood test for the JC antibody is now commercially available in Europe. The rate at which PML occurred “should moderate” and eventually decline as a result of the assay as more patients were tested, Mr Martin said.
Every 10,000 Tysabri patients adds $100 million to Elan’s earnings, according to the company.
