Tysabri narrows Elan's 2nd-qtr losses 37%

Elan narrowed its second-quarter 2006 loss 37% on the comparable period last year, thanks to growing sales of its re-launched multiple sclerosis drug Tysabri (natalizumab). The Irish biotechnology group posted a loss of $90.5 million, while its basic and diluted net loss per ordinary share dropped 62.8% to $0.18.

Industry observers are confident that the US Food and Drug Administration's decision to reintroduce Tysabri with updated safety information will allow the Dublin-headquartered firm to swing to profitability by next year (Marketletter June 12).

Elan also attributed its improved fortunes to strong growth in product revenue, better operating margins and the inclusion in 2005 of a charge associated with retiring debt early, partially offset by the impact of expensing share-based compensation in the second quarter of 2006 and a 2005 gain from the divestment of Zonegran (zonisamide).