Elan has reported operating profits, before other charges and gains, for the first time since 2001.
Revenues for the 12 months to the end of December rose by 5% to $1.2 billion, led by an 18% increase in revenues from its multiple sclerosis drug Tysabri.
Sales of the MS drug hit $851.5m for the full year from $724.3m in 2009. The number of patients using the drug worldwide rose by 17% to about 56,000.
Combined with a 9% fall in operating expenses and the revenue increase, Elan reported what it called a 'significant improvement' of 73% in adjusted earnings to $166.5m.
However, the company's net loss increased from $176.2m to $324.7m due to a settlement agreement reached with the US government regarding its Sonegran drug. It put aside a reserve charge of $206.3m for this.
'2010 was a year of tangible advancement for Elan with demonstrated progress in both the BioNeurology and EDT businesses,' commented Elan's chief executive Kelly Martin.
'Revenue growth combined with prudent and disciplined cost management enabled us to achieve our goal of operating profitability before other charges and costs,' he added.
'In 2011, we will continue to focus our efforts on the continuous improvement of operating performance while simultaneously investing in and advancing science and therapeutics that may ultimately be of benefit to patients and their families,' he added.
He said that Elan expects to be cash flow positive with earnings of about $200m in 2011, a 20% increase on 2010. The increased earnings will be driven by an acceleration in the growth of revenues and reduced operating expenses.
Breaking down the figures, Elan said that revenue from its BioNeurology business increased by 7% to $895.6m with the 18% increase in Tysabri sales offset by lower than expected revenues from the Maxipime, Azactam and Prialt drugs.
But revenues from the company's EDT business decreased slightly to $274.1m last year from $275.9m in 2009.
Elan said that its research and development expenses in 2010 reduced by 12% to $258.7m from $293.6m.
Elan shares closed up 1.9% at €5.16 in Dublin.
