Pharmaceutical group Elan, which is based in Dublin, reported a 59 per cent rise in after-tax profits in the second quarter of 2001 to $163.7 million (#187.30 million) from $102.9 million.
The strong performance was driven by continued good growth in sales of its drug products and more lucrative margins as it continues its transformation to being a fully integrated pharmaceutical company.
Commenting on the second quarter out-turn yesterday, Elan's chairman and chief executive, Mr Donal Geaney, said its key products had performed strongly with sales of Zanaflex and Skelaxin in particular coming in well ahead of expectations.
Elan shares were weaker in Dublin yesterday despite the strong set of figures in line with the international pattern in the pharmaceutical sector. The shares closed #68.50, down #3. On the New York Stock Exchange, the shares were down $1.82, or 3 per cent, at $58.82.
The shares had jumped in value earlier this week, adding more than one percentage point to the ISEQ Index on the back of positive news about its experimental vaccine for Alzheimer's disease.
The company is now preparing to initiate phase two trials of this vaccine this quarter to include around 375 patients with mild to moderate Alzheimer's disease.
Earnings per share rose by 45 per cent to 45 cents in the second quarter. Revenues increased by 25 per cent to $461.2 million from $368.8 million in that period driven by a 48 per cent rise in product revenues to $356.3 million.
Over the full year Elan aims to achieve revenues of around $2 billion.
Elan's executive vice chairman, Mr Tom Lynch, said new developments for the company in the third quarter would be driven by approvals for its drug products by the US Food and Drug Administration.
The company is still awaiting FDA approval of Ziconotide, a treatment for chronic pain. It has also presented positive results of a phase two study with Antegren, a treatment for Crohn's disease and will present further data for multiple sclerosis treatment in September.
During the second quarter Elan completed the integration of its North American pharmaceutical business which will be centralised in San Diego in California.
Meanwhile, pharmaceutical group American Home Products, which earlier this week joined Elan in the development of the new Alzheimer's treatment, said yesterday its second-quarter earnings rose 16 per cent from the same period a year ago to $477 million.
Revenues increased 6 per cent to $3.22 billion, but were limited by the strong dollar. Without currency effects, revenues would have been up 10 per cent.
The company said second-quarter results were largely driven by strong growth rates for key products, including its depression treatment Effexor and stomach ulcer medication Protonix.
