Elan Corp. plc - Conference Presentation Calls

Elan Corp. plc announced data showing that treatment with TYSABRI® (natalizumab) significantly reduced the rate of hospitalization compared with placebo in patients with moderate-to-severe Crohn's disease during both induction and maintenance treatment. These results were obtained from retrospective subset analyses of three registrational Phase 3 trials (ENACT-1 [Efficacy of Natalizumab as Active Crohn's Therapy]), (ENACT-2 [Evaluation of Natalizumab as Continuous Therapy] and ENCORE [Efficacy of Natalizumab in Crohn's Disease Response and Remission]), and one open-label study (ENABLE [Evaluation of the Natalizumab Antibody for Long-term Efficacy]). The data were presented for the first time in an oral session at the American College of Gastroenterology Annual Scientific Meeting in San Diego.

Elan Corp. plc reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income of $52.3 million or $0.11 per basic and diluted share compared to a net loss of $83.5 million or $0.18 per basic and diluted share for the third quarter of 2008. Total revenue increased by 6% to $287.0 million, from $270.1 million for the same period in 2008. Operating income was $102.8 million against operating loss of $39.3 million a year ago. Net income before tax was $68.4 million against net loss before tax of $80.4 million a year ago. EBITDA was $122.4 million against LBITDA of $29.7 million a year ago. Adjusted EBITDA was $23.8 million, compared to adjusted LBITDA of $1.6 million in the same period of 2008. Cash flow from operating activities was $25.5 million against cash used in operating activities of $18.3 million a year ago. The improvement in net income of $135.8 million principally reflects a $107.7 million net gain on divestment of the Alzheimer's Immunotherapy Program (AIP) business to a subsidiary of Johnson & Johnson during the quarter, along with an improved operating performance, with the operating loss excluding this gain and other net charges decreasing by $29.8 million to $1.7 million in the third quarter of 2009 compared to $31.5 million in the third quarter of 2008. This improved operating performance resulted from a 6% increase in revenues and a 12% reduction in operating expenses. Operating income of $102.8 million includes a net gain on divestment of business of $107.7 million related to the sale of the AIP business as part of the Johnson & Johnson transaction. Excluding this net gain on divestment of business and other net charges, the operating loss for the third quarter of 2009 was $1.7 million, a decrease of 95% from $31.5 million for the third quarter of 2008. This improved operating performance resulted from the 6% increase in revenue and the resulting increase in gross margin, combined with a 12% decrease in selling, general and administrative (SG&A) and research and development (R&D) expenses. The improvement in adjusted EBITDA principally reflects the increase in revenue and improved operating margins as a result of the 12% decrease in SG&A and R&D expenses. Increase in revenue mainly related to growth in the Biopharmaceuticals business. The company reported revenue from Biopharmaceuticals business increased by 10%. Net purchases of tangible and intangible assets were $2.1 million against $87.5 million last year. For the nine months, the company reported net loss of $118.5 million or $0.25 per basic and diluted share on total revenue of $813 million compared to a net loss of $240.5 million or $0.51 per basic and diluted share on total revenue of $730.4 million for the third quarter of 2008. Operating income was $31.5 million against operating loss of $120.9 million a year ago. Net loss before tax was $72.5 million against $232.8 million a year ago. EBITDA was $88.9 million against LBITDA of $82.3 million a year ago. Adjusted EBITDA was $36.9 million, compared to adjusted LBITDA of $22.4 million in the same period of 2008. Cash used in operating activities was $73.8 million against $140.3 million a year ago. Net purchases of tangible and intangible assets were $78.8 million against $110.7 million last year. The company's net debt has been reduced by approximately 60%, from $1.5 billion at June 30, 2009 to $0.6 billion at September 30, 2009. For the full year of 2009, it remains on track to record double digit revenue growth and now expects adjusted EBITDA of around $75 million, better than previously expected.