Elan reports Q1 profits, may reorganize EDT, BioNeurology units

Elan may formally separate its Elan Drug Technologies group from its BioNeurology unit. Both EDT and BioNeurology are currently profitable, but according to the company, “each represents vastly different investment propositions, and each generates distinct and on-going capital requirements for utilization against a broad array of potential opportunities.”

Elan executive vice president and CFO, Shane Cooke said that revenue growth of 27 percent combined with a reduction in operating expenses of 23 percent contributed to an operating profit of $32.7 million for the quarter, a turnaround from the $54.8 million in operating losses recorded last year. "For the full year 2010, we remain on target to record revenue growth, Adjusted EBITDA of more than $150.0 million and, for the first time in several years, operating profits before other charges or gains," said Cooke.

A go-no-go decision on the potential unit separation will be made “in the coming months” following completion of a company review.

Separately, Kyran McLaughlin, Elan’s Chairman of the Board has announced his intention to retire as Chairman. He will continue to serve in the role, however, until a successor is appointed.

- here's the Elan release

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