Pharmaceutical company Elan has reported an 82% decrease in net losses for the year ending December 31, 2008. It reported a net loss of $71m for 2008, which compares to a loss of $405m reported the previous year, as a result of an improved operating performance.
Total revenues for the year increased by 32% to $1 billion, up from $759.4m for 2007. Elan said that revenue from the biopharmaceuticals business grew by 51% while revenue from the Elan Drug Technologies business rose by 2%.
The Athlone-based firm said that the increase in revenue from the biopharmaceuticals business was driven by a strong performance by its MS drug Tysabri which saw sales jump by 140% to $557.1m. This more than offset reduced sales of its Maxipime drug after the introduction of generic competition in 2007.
Elan said that by the end of the year, its cash and investments totalled almost $450m, ahead of the $300-400m predicted in February.
For the fourth quarter of 2008, Elan reported net income of $169.5m compared to a net los of $83.5m for the fourth quarter of 2007. It said this was due mainly to an improved operating performance and a $236.6m tax benefit.
The gains were offset partially by other charges related to the realignment of commercial activities related to Tysabri for the treatment of Crohn's disease and the announced closure of offices in New York and Tokyo.
Elan said it expects revenues to grow by double digit percentages for the full year of 2009 and to end the year with cash and investment balances of about $200m.
Elan said in January that it had hired Citigroup to conduct a review which could lead to a minority investment or strategic alliance, a merger or sale.
'Elan is committed to completing its review of potential alternatives as promptly as practicable. However, there can be no assurances that any particular alternative will be pursued or that any transaction will occur, or on what terms,' it said in today's results statement.
Elan shares closed down 12 cent at €6.25 in Dublin.
