Elan's 1-year share price chart on the New York Stock Exchange to Feb 12, 2008

Irish drugs firm Elan today anounced its full-year and fourth quarter 2007 financial results and provided guidance for its financial outlook for 2008.

For the full-year 2007, total revenue increased 36% to $759.4 million from $560.4 million in the full-year 2006. Total revenue for the fourth quarter of 2007 increased 31% to $218.3 million from $166.4 million in the same period of 2006.

For the full-year 2007, Elan's net loss increased to $405.0 million from $267.3 million for the full-year 2006.

The net loss for the fourth quarter of 2007 increased to $83.5 million from $26.5 million in the fourth quarter of 2006, primarily due to the inclusion of a gain of $49.8 million on an arbitration award in the fourth quarter of 2006. The increase in net loss was partially offset by improved operating margins, as reflected by a 31% increase in revenues compared with an 18% increase in operating expenses (before including the $49.8 million gain on arbitration award). Revenue growth was primarily driven by Tysabri, with worldwide in-market sales approaching $130.0 million for the quarter.

Elan's reported Tysabri revenues in the quarter were $90.6 million. The gross margin fell from 60% in the fourth quarter of 2006 to 55% in the fourth quarter of 2007, principally reflecting the impact of sales of Tysabri, which have a lower gross margin due to the collaboration agreement with US partner Biogen Idec Inc.

Commenting on Elan's business, Kelly Martin, Elan's psident and chief executive officer, said, "Our key operating principles of patient focus, disciplined execution, and delivery of tangible results and outcomes were achieved in 2007. The continued traction for Tysabri in MS and the approval for Crohn's disease in the US; the advancement of our AD clinical programs for AAB-001 and ELND-005; and the on-going progress in our pclinical discovery efforts all provide a strong foundation to maintain and potentially increase our positive momentum in 2008. We remain completely committed to advancing our science for patients and clinicians around the world, increasing therapeutic options for those who are directly affected by chronic diseases such as Alzheimer's, Parkinson's, Multiple Sclerosis and Crohn's."

Commenting on Elan's 2007 financial results and 2008 outlook, Shane Cooke, Elan's executive vice psident and chief financial officer, said, "We are very pleased with the robust financial performance of the business during 2007, reflecting excellent progress across our businesses and development pipeline. Revenues grew by 36% driven by the continued strong growth of Tysabri, with over 21,000 patients on therapy at the end of 2007, which was key in reducing our Adjusted EBITDA (Earnings before interest, taxes, depciation and amortization) losses by two-thirds to $30.4 million in 2007.

The 2007 net loss of $405.0 million was, however, higher than in 2006 mainly due to the inclusion of $103.4 million in charges in 2007 related to the introduction of a generic competitor to Maxipime, the consolidation of our activities on the west coast of the US and the early repayment of debt. In 2006, the net loss benefited from the inclusion of $63.4 million in net gains related principally to a gain on the sale of the EU rights to Prialt and an arbitration award. With the recent approval of Tysabri in Crohn's disease in the US and the growing number of MS patients benefiting from Tysabri use, we remain confident that we will achieve our target of having 100,000 patients on Tysabri therapy by the end of 2010. We look forward to 2008 with great optimism and see revenues growing by over 30% towards the $1 billion mark."