Biotech firm Elan increased revenue in the third quarter of the year as sales of its MS drug Tysabri grew, the company said this morning.

Total revenues grew by 17 per cent compared with a year earlier, with sales of Tysabri up 28 per cent. The company also managed to cut operating expenses by 10 per cent over the period.

Adjusted EBITDA was $60.3 million (€43.1 million), a rise of 58 per cent compared to the third quarter of 2010. Net income was $674.1 million, with Elan gaining $657.1 million on the sale of EDT in September.

The firm reduced debt and its annual interest expense by 50 per cent as it retired some $658.7 million of bonds following the EDT deal.

Elan chief executive Kelly Martin said the company was pleased with its financial and commercial progress during the quarter.

"The closing of the EDT deal in particular is transformational for our business, specifically in our ability to address debt and focus appropriate and measured investment in our neuroscience efforts," he said.

Revenues from Elan's BioNeurology business are expected to exceed $1 billion this year.