Pharmaceutical group Elan recorded a smaller-than-expected loss in the fourth quarter and said it expects to be profitable at an Ebitda level at the end of 2007, writes Claire Shoesmith.
The company, which has suffered a series of setbacks following the withdrawal of its multiple sclerosis drug Tysabri from the market in 2005, yesterday revealed a net loss of $27 million (€21 million) in the three months to the end of December. This compares with a loss of $58 million a year earlier. Revenue was up 19 per cent at $166 million.
"The outlook for the business is strong and we are confident we will advance to profitability in the foreseeable future," said chief financial officer Shane Cooke. "We expect to make further significant progress in 2007."
For the full year, Elan reported a net loss of $267 million, down from $384 million in 2005. On an Ebitda (earnings before interest, taxation, depreciation and amortisation) basis, the loss narrowed to $24 million from $29 million. Revenue was up 14 per cent at $560 million.
As well as benefiting from the relaunch of Tysabri in the US and its introduction into Europe, Elan's figures were boosted by a one-off gain relating to an arbitration settlement.
Speaking on a conference call with journalists, Mr Cooke welcomed the return of Tysabri, saying that this was a significant moment for the group. He said currently as many as 300 new patients a week are being prescribed the drug, bringing the total number of people using it to 10,000 across the US and Europe.
At this level of take-up, he said revenue from Tysabri should exceed $500 million in 2007. For 2006, Tysabri revenues were $38 million.
Excluding revenue from Tysabri, Elan is forecasting 2007 revenue of more than $500 million, while its loss will be less than $50 million.
Shares in Elan fell 21 cent, or 1.9 per cent, to close at €10.94 in Dublin, while in the US they were trading down almost 3 per cent.
Analysts said the stock had had a decent run into the numbers and attributed the drop to a lack of information on new drugs.
In discussion with analysts, Mr Cooke said that due to the substantial losses incurred by the company so far, under Irish tax law it will be able to make as much as $3 billion in profits before incurring any significant tax liabilities.
