BIOTECH GROUP Elan raised its forecasts for the year and said that it aims to double the market share of multiple sclerosis drug Tysabri over the next few years.
The blockbuster drug already accounts for close to 80 per cent of the group’s revenues and has just under 10 per cent share of the market for multiple sclerosis therapies.
Chief financial officer Shane Cooke said yesterday that, over time, there was potential to grow market share significantly. “We can see it doubling over the next couple of years,” he said.
His comments come just days after European authorities approved amended labelling for the drug to show that people testing negative for JC virus antibodies have significantly less risk of contracting the main adverse side effect of the drug – a potentially fatal brain disease called progressive multifocal leukoencephalopathy.
The company and its US partner, Biogen, have developed a test for the antibodies. Group vice-president for investor relations David Marshall said yesterday that MS patients testing negative for the virus had a risk of less than one in 10,000 of contracting the disease. At the other end of the spectrum, people testing positive for JCV antibodies who have also been on Tysabri for more than two years and who have had prior use of immunosuppressants have a risk as high as one in 125 of contracting the disease.
Between 40 and 50 per cent of MS patients are understood to be JC virus negative.
The executive’s comments came as the company presented first-quarter figures showing that a 23 per cent increase in sales of Tysabri to $245.2 million more than offset $40 million in revenue lost compared to the first quarter of last year from products that are no longer produced by the company. Mr Cooke said this was the last quarter when sales of legacy products would drag down comparisons. “As a result, there will be very significant growth in future quarters,” he said.
Increased sales, tighter cost management and a $78 million legal settlement saw the company deliver earnings before interest, tax, depreciation and amortisation (Ebitda) of $68 million for the first three months of the year.
He said figures were ahead of projections “on almost every line”.
“We are very pleased with the results which are very strong,” he said.
