Elan reports reduced losses

Elan Pharmaceuticals has reported reduced losses and increased revenues during its first quarter of 2006. 2005 was a torrid year for the Irish-based manufacturer, having to with draw multiple sclerosis drug Tysabri amid fears of dangerous side-effects. The company says this and the costs associated with the withdrawal knocked revenues and were largely responsible for running up a loss.

However, Elan reported a 71 per cent reduction in losses. After losing $74.7 million (40.4 million pounds), the operating loss for 2006 has decreased to $6.9 million. Elan’s president and chief executive, Kelly Martin, gave a positive outlook for the company’s business. He said: “We expect the breadth and depth of accomplishments that we have achieved in this first quarter to continue and build momentum as we move through the year.”

Last week Biogen Idec and Elan received a new positive opinion for the use of Tysabri from European Medicine Agency’s committee for medical products for human use, which generally precedes full approval from the European Commission regulatory body.

Executive president and chief financial officer, Shane Cooke, commented: “We remain committed to making Tysabri available for patients in the United States and Europe and are confident that, with the financial leverage we have created over the last year, revenues from Tysabri will accelerate our return to profitability.”

Eric Schmidt, an analyst at SG Cowen and Co, told Bloomberg in March that sales in Tysabri could range between $500 million and $1 billion in annual sales within three to four years.

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