Elan's loss narrows further on Tysabri sales

Irish biotechnology company Elan's third-quarter loss narrowed 4%, compared with the same period of last year, as revenue increased 53% on rocketing sales of its Tysabri (natalizumab), now indicated both for multiple sclerosis and Crohn's disease treatment .

The firm's net loss was reduced to $83.5 million, or $0.18 loss per share, versus $87.4 million, or $0.19 loss per share. Cash and cash equivalent increased 5% to $444.1 million, but total assets were drained by 18% to $751.4 million. Total turnover rose to $270.1 million vs $176.6 million, increasing roughly the same amount as sales of Tysabri, which reached $164.5 million vs just $63.5 million in the third quarter of 2007.

Chief financial officer Shane Cooke said that the drug, jointly marketed by Biogen Idec, is "fast approaching blockbuster status," however, the Wall Street Journal noted that patient uptake-rates had dipped since August as the agent was linked with the development of a rare brain disease (Marketletters passim). R&D expenses were also up 53%, to $90.0 million, as funding from Tysabri allowed the firm to increase its spending on Alzheimer's disease therapy development.