Revenue up, costs down. It's a good direction for Elan
Total revenue rose 6% thanks to Tysabri's slow but steady growth; Biogen Idec
Tysabri is and will be the most important drug for Elan for years to come, but the company's royalty income should soon enjoy another boost. Johnson & Johnson
Elan actually showed a profit this quarter, but that owed entirely to closing its convoluted deal with Johnson & Johnson to buy half of Elan's Alzheimer's-disease program. Pfizer
While I wasn't very excited about the deal that Elan got, it did provide the company with some much-needed cash, which helped refinance its debt. Investors really couldn't have expected too much more, considering the bind that Elan had worked itself into.
Thanks to the increased revenue and the decreased costs, the company expects to have an adjusted operating profit in the fourth quarter for the first time in many years. That's a nice start, but I'll be more impressed when the Motley Fool Rule Breakers recommendation is making enough to cover all of its bills, including taxes and interest payments.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Pfizer is a recommendation of the Inside Value newsletter. Johnson & Johnson is an Income Investor selection. The Fool has a disclosure policy.