Drugs company Elan this morning reported a narrowing of its losses for the final quarter of the year. Losses for the three month period ending December 31 amounted to $79m, down from $187m the same time the previous year.
The company said it is optimistic that it will return to profitability by the end of 2006. While it is early days, the initial take-up since the launch of its MS drug Tysabri is exceeding all our expectations, Elan said.
Elan said that its total product revenue for the fourth quarter of $102.3m fell by 19% to $126.2m the same time in 2003, mainly due to the divestment of a number of products and businesses last year - principally the European business and Zonegran.
Revenue from retained products and contract manufacturing and royalties of $91.8m in the fourth quarter of 2004 increased by 29% over the $70.9m the same time in 2003. Revenue from sales of MS drug Tysabri amounted to $6.4m in the fourth quarter, Elan added.
Research and development expenses amounted to $71.4m in the fourth quarter of last year compared to $59.4m the same time in 2003. The increase was mainly due to the timing of expenditures related to the clinical development and other related costs of Tysabri and Prialt and R&D efforts on the Alzheimer's programmes.
'2004 was an extraordinary year for Elan, with two Elan innovations - Tysabri for multiple sclerosis and Prialt for severe chronic pain - approved in the US, with both therapies advancing in the regulatory process in Europe,' commented Elan's President and CEO Kelly Martin.
'For 2005, we look forward to continuing growth across the Tysabri franchise, working with our collaborator Biogen; continued clinical progress in the Alzheimer's immunotherapy programme in collaboration with Wyeth; ongoing advancements in our strategic pipeline; and disciplined investment aligned to our core therapeutic areas of autoimmune diseases and neurodegenerative diseases,' he added.
Elan shares closed down 49 cent at €21.55 in Dublin.
