Elan Reports Fourth Quarter and Full-Year 2010 Financial Results.
Business Wire › February 08, 2011
Linked as:
Extract
Elan Reports Fourth Quarter and Full-Year 2010 Financial Results.
DUBLIN -- Elan Corporation, plc today reported its fourth quarter and full-year 2010 financial results and provided financial guidance for 2011.
Elan CEO, Kelly Martin, commented, "2010 was a year of tangible advancement for Elan with demonstrated progress in both the BioNeurology and EDT businesses. Revenue growth combined with prudent and disciplined cost management enabled us to achieve our goal of operating profitability before other charges and gains. This, combined with a further de-leveraging of the balance sheet provided enhanced operating leverage from an overall performance point of view." Mr. Martin added, "In 2011, we will continue to focus our efforts on the continuous improvement of operating performance while simultaneously investing in and advancing science and therapeutics that may ultimately be of benefit to patients and their families."Commenting on the results, Elan EVP and CFO, Shane Cooke said, "The Company was pleased to have met or exceeded all of its financial guidance for 2010. Revenues grew by 5% to $1.2 billion, led by an 18% increase in revenues from Tysabri. Our revenue increase combined with a 9% decrease in operating expenses, before other charges and gains, led to a significant improvement of 73% in Adjusted EBITDA to $166.5 million. As a result Elan recorded operating profits, before other charges and gains, for the first time since 2001. We also generated cash from operating activities in each of the four quarters of 2010 and reduced total debt by 17%. Although the results reflect an improved operating performance, the net loss for the year increased from $176.2 million to $324.7 million mainly as a result of the settlement agreement we reached with the U.S. government regarding Zonegran for which we recorded a settlement reserve charge of $206.3 million and the inclusion of a net gain in 2009 of $108.7 million associated with the Johnson & Johnson Transaction."Mr Cooke added, "For 2011, Elan expects to be cash flow positive with Adjusted EBITDA of approximately $200 million, driven by an acceleration in the growth of revenues and reduced operating expenses."Unaudited Consolidated U.S. GAAP Income Statement Data Three Months Ended December 31 Twelve Months Ended December 31 2009 US$m 2010 US$m 2009 US$m 2010 US$m Revenue (see page 8) 297.1307.4 Product revenue1,094.31,156.0 2.91.5 Contract revenue18.713.7 300.0308.9 Total revenue1,113.01,169.7 150.4157.0 Cost of goods sold560.7583.3 149.6151.9 Gross margin552.3586.4 Operating Expenses (see page 13) 61.562.7 Selling, general and administrative268.2254.7 52.264.6 Research and development293.6258.7 ----Settlement reserve charge (see page 19)-- 206.3 36.536.9 Other net charges (see page 19)67...See the full content of this document
Sponsored links
