Elan lessens loss

Irish firm Elan has reported increased revenue with lower losses.

The firm’s operating loss for the fourth quarter of 2005 almost halved to $58.3 million, while losses for the whole year stood at $384 million, ?11m under 2004’s figure, as costs were cut by $50 million.

Revenue for 2005 was up just two per cent to $490.3m.

Elan president and chief executive Kelly Martin said: “2005 was a year of unexpected challenges, business opportunity and scientific progress.

“Operating and financial discipline combined with selective investments in our science and technology allowed us to make advancements in all areas of the company.”

He added that progress towards the re-marketing of Tysabri was being made along with further developments in the immunotherapeutic program for Alzheimer’s.

Tysabri was taken off the market after being linked the brain illness progressive multifocal leukoencephalopathy (PML).

Further studies found no other cases of PML and Elan, with its partner Biogen, has now submitted a new application to the US Food and Drug Administration (FDA).

Elan chief financial officer Shane Cooke said: “Back in February 2005, when we voluntarily suspended the marketing of Tysabri, we set a target of getting the rest of the business to break even.

“We are pleased to report that we achieved this target, an important step in our return to profitability.

“Product revenue in the fourth quarter of 2005 grew by 30 per cent over last year and reduced costs have led to improved operating margins and a reduction in net losses of 46 per cent to $58.3 million while retaining cash balances in excess of $1 billion.”

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