Elan’s financial guidance for 2012 assumes that the Tysabri Italy dispute is resolved during 2012. If the matter is not resolved during 2012, Elan estimates that Biogen Idec would defer $60-70 million of 2012 Tysabri in-market net sales as a result. This would result in a deferral of revenues and Adjusted EBITDA by Elan for the full-year 2012 of approximately $30-35 million and $20-25 million, respectively.
In the ROW market, Biogen Idec is responsible for distribution, and Elan records as revenue its share of the profit or loss on ROW sales of Tysabri, plus Elan’s directly-incurred expenses on these sales. As a result, in the ROW market, Elan recorded net revenue of $76.9 million for the second quarter of 2012 compared to $86.2 million for the second quarter of 2011.
Elan’s net Tysabri ROW revenue is calculated as follows:
|Three Months Ended June 30||Six Months Ended June 30|
|2011 US$m||2012 US$m||2011 US$m||2012 US$m|
|205.9||184.0||ROW in-market net sales by Biogen Idec||385.4||382.0|
|(94.0)||(80.6)||ROW operating expenses incurred by the collaboration||(176.4)||(162.2)|
|111.9||103.4||ROW operating profit generated by the collaboration||209.0||219.8|
|55.9||51.7||Elan’s 50% share of Tysabri ROW collaboration operating profit||104.5||109.9|
|30.3||25.2||Elan’s directly incurred costs||57.0||54.2|
|86.2||76.9||Net Tysabri ROW revenue||161.5||164.1|
Other productsElan ceased distributing Azactam as of March 31, 2010, and Maxipime as of September 30, 2010. The revenue and adjustments for these products in 2011 and 2012 relates to adjustments to discounts and allowances associated with sales prior to the cessation of distribution.
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