Tysabri sales improve Elan's 2nd-qtr loss 49%

Irish biotechnology firm Elan's second-quarter 2008 net loss narrowed 49% year-on-year to $71.5 million, boosted by higher sales of Tysabri (natalizumab). Co-developed with partner US drugmaker Biogen Idec (see page 6), the multiple sclerosis drug earned $200.0 million, an increase of 177% and helped drive a 30% increase in Elan's total revenue, to $245.6 million.

The firm's strong performance was also helped by the inclusion of $67.1 million in other charges in the second quarter of 2007, primarily related to the introduction of generics of the antibiotic Maxipime (cefepine) and the consolidation of Elan's activities on the US west coast.

Excluding these other charges and R&D costs, operating profit improved 51.7% to $47.8 million, driven by the 30% increase in revenues and better margins. R&D costs increased 36% to $81.2 million due to the advancement of Elan's Alzheimer's disease programs in the clinic.