This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Elan Reports Third Quarter 2012 Financial Results

Neotope Separation

As further described on page 16, in August 2012, Elan announced its intention to separate a substantial portion of its drug discovery business platform, which is referred to as the “Neotope business”, into a new, publicly traded company incorporated in Ireland. We expect to complete this transaction by year-end 2012. The Neotope business focuses on the discovery and development of novel antibodies for the potential treatment of a broad range of diseases that involve protein misfolding or cell adhesion.

Following the Neotope separation, Elan intends to discontinue its remaining early stage research activities. As a result, Elan is restructuring its operations and will close its South San Francisco facility in early 2013. During the third quarter of 2012, Elan incurred $100.3 million of other charges in connection with the restructuring, primarily consisting of employee severance costs and asset impairment charges (see page 13).

Debt Refinancing

Following the completion of the debt refinancing transactions in October 2012, as further described on page 14, the principal amount of Elan’s debt has been reduced from $624.5 million at September 30, 2012, to $600.0 million on a pro forma basis, the coupon has decreased from 8.75% to 6.25% and the maturity of the debt has been extended by approximately three years from October 2016 to October 2019. The effects of this debt refinancing will be reflected in the fourth quarter 2012 results.

Total Revenue

For the third quarter of 2012, revenue increased by 10% to $306.6 million from $279.4 million for the third quarter of 2011. For the nine months ended September 30, 2012, revenue increased by 11% to $883.0 million from $797.1 million for the same period of 2011.

Three Months Ended     Nine Months Ended
September 30 September 30
2011   2012 2011   2012
US$m   US$m       US$m   US$m
Product revenue
197.1 230.5 Tysabri – U.S. 550.1 643.0
81.9 75.9 Tysabri – ROW 243.4 240.0
279.0 306.4 Total Tysabri 793.5 883.0
0.1 Maxipime 0.8
0.1 Azactam 0.5 (0.5)
0.2 0.2 Royalties 2.3 0.5
279.4 306.6 Total revenue 797.1 883.0
 

Tysabri

Global in-market net sales of Tysabri can be analyzed as follows:

Three Months Ended     Nine Months Ended
September 30 September 30
2011   2012 2011   2012
US$m   US$m       US$m   US$m
197.1 230.5 United States 550.1 643.0
195.5 173.3 ROW 580.9 555.3
392.6 403.8 Total Tysabri in-market net sales 1,131.0 1,198.3
 

At the end of September 2012, approximately 71,100 patients were on therapy worldwide, including approximately 32,900 commercial patients in the United States and approximately 37,400 commercial patients in the ROW, representing a 3% increase over the approximately 69,000 patients (revised) who were on therapy at the end of June 2012, and 13% over the approximately 63,200 patients (revised) who were on therapy at the end of September 2011.

2 of 15

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs