Elan Corp posted a wider fourth-quarter loss than expected today after various charges pushed it deeper into the red last year but predicted revenues would grow more than 30 per cent in 2008.
Dublin-based Elan 's basic loss per share widened to 18 cents in the three months to the end of December from 6 cents in the same period of 2006. The loss was worse than the 16.45 cent average of six analysts' forecasts compiled by Reuters.
For 2007 as a whole, the company's net loss worsened to $405 million from $267.3 million as it pointed to costs relating to generic competition for its antibiotic Maxipime, restructuring at its US operations and early repayment of debt.
The previous figure for 2006 had also been boosted by $63.4 million in net gains.
At an adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) level its full-year loss improved sharply, however, narrowing to $30.4 million from $91.1 million in 2006.
Elan had said in October that it hoped to beat a target of reducing its 2007 EBITDA loss to $50 million and today set a similar goal for a core loss of less than $50 million this year.
"We look forward to 2008 with great optimism and see revenues growing by over 30 percent towards the $1 billion mark," chief financial officer Shane Cooke said in a statement. Revenue grew 35 per cent to $759.4 million in 2007.
The company, still recovering from a brush with bankruptcy in 2002, has said it hopes growing demand for its Tysabri multiple sclerosis treatment developed with US partner Biogen Idec will ensure a return to profitability.
The drug returned to the market with tougher prescription guidelines in 2006 after sales were suspended in 2005 over links to a rare and potentially fatal brain disease.
"We remain confident that we will achieve our target of having 100,000 patients on Tysabri therapy by the end of 2010," Mr Cooke said.