ELAN TARGETS IMPROVED REVENUES ON TYSABRI SALES - Two big name Dublin listed companies reported their 2007 figures this morning, Elan and Smurfit Kappa. Pharmaceutical firm Elan said its 2007 revenues increased by almost $200m to $760m, but operating losses also increased by $100m to $265m. The Athlone-based firm said it remains confident its target of having 100,000 multiple sclerosis and Crohn's disease patients using its Tysabri treatment by 2010. It says it is has great optimism for 2008 and is looking to see its revenues grow by more than 30% to approach if not exceed $1 billion.
Speaking in Dublin this morning, Elan's chief executive Kelly Martin says the company's losses increased in 2007 due to some once-off items it had to take care of. He says that 2007 was an important year for Tysabri, as the company ended the year with the drug being profitable and its patient numbers growing significantly to 21,000. The number of doctors in the US prescribing the drug also doubled and the Tysabri is now approved in over 30 countries all over the world.
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SMURFIT KAPPA EXPECTS MODEST PROFIT GROWTH THIS YEAR - Smurfit Kappa, which took a stock market listing in March of last year, this morning reported a 4% increase in revenues to just under €7.3 billion for 2007. The company, with operations in Europe and Latin America, also reported a 20% increase in EBITDA before exceptional items to €1.64 billion. The company says it expects modest profit growth in 2008. Smurfit Kappa is one of those companies which is very sensitive to cost pressures in the wider economy.
Rising raw material costs have been an issue and CEO Garry McGann says that because of this, customers can expect single digit price increases during 2008. Mr McGann says that there is no question that people are concerned about the macro-economic developments and while it is too early in the year to be prescriptive, he says that the company has had a 'satisfactory' start to the year.
He predicts that the general cost environment will continue to harden as 2008 progresses, especially raw material costs and energy and transport costs.
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LISNEY WARNS OF FALLING RENTS IN DUBLIN OFFICES - A report from estate agents Lisney this morning says Dublin office rents could fall this year because of the crisis in the financial markets. Lisney says office rents, which rose by 11% in 2006, were stagnant last year. The agency's head of research Dr John McCartney said the financial services industry was responsible for 45% of Dublin office take-up last year, and demand this year could be sensitive to problems on financial markets. At the same time as demand was easing, he added, an extra 310,000 square metres of office space was planned for this year. 'If the demand for office space moderates as we anticipate, rapid supply growth could cause vacancy rates to creep up. This would put downward pressure on rents,' he said.
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MORNING BRIEFS - A consortium led by Richard Branson's Virgin Group has been told by the UK Treasury that it is the front runner to take over Northern Rock, according to the BBC. However it has also been told to improve its offer if the Treasury is to allow a take over in preference to Nationalisation.
**** On the currency markets this morning, the euro is worth $1.4572 and 74.44 pence sterling.
