Elan, the Irish drugs firm, reported today that its third quarter revenues increased by 53% to $270.1m, compared to revenues of $176.6m in the third quarter of 2007.  The operating loss of $39.3m for the three month period fell from $63.6m for the third quarter in 2007.

The increase in revenue was driven by the the MS drug Tysabri, which generated in-market sales of $237m on a worldwide basis this quarter. That represented an increase of 154% over the $93.3m recorded the same time last year.

Elan said that Tysabri is fast approaching blockbuster status, defined in the industry as revenues exceeding $1 billion a year. At the end of September, about 35,500 patients were using Tysabri worldwide.

The US Food and Drug Administration approved the use of Tysabri for the treatment of patients with Crohn's Disease in January. At the end of September, Elan said that about 200 Crohn's disease patients were on therapy.

The company said that total research and development (R&D) expenses increased by 53% mainly due to the advancement of Elan's Alzheimer's disease programmes in the clinic.

Elan said that revenues from its biopharmaceuticals business rose by 85%, while revenue from the EDT business rose by 3%.

Commenting on Elan's business, Kelly Martin, Elan's president and chief executive officer, said, "This quarter's results demonstrate continued focus on execution. The brief overview presentation of the Phase II data for bapineuzumab at the International Conference on Alzheimer's Disease (ICAD) and the emergence of two confirmed cases of progressive multifocal leukoencephalopathy (PML) with Tysabri have contributed to increased volatility in our equity value and a change in the risk perception of Elan within the marketplace. We have incorporated these events into our plans and activities - sharing relevant medical information with regulatory agencies, treating physicians and their patients to continue to responsibly advance our programs. Our energies and investments have been and will continue to be channeled to grow Tysabri and to advance our pipeline. Tangible progress will assist in addressing the perceptions of risk and allow volatility of our equity to reduce over time."

Commenting on Elan's third quarter financial results, Shane Cooke, Elan's executive vice president and chief financial officer said,"We are pleased to report a robust financial performance with revenues increasing by 53%, compared to revenues in the third quarter of 2007, and Adjusted EBITDA losses reduced to almost breakeven levels at $1.6 million for the quarter. This strong revenue growth, together with an increased investment in R&D associated with the advancement of our Alzheimer's clinical development programs, led to a decrease of 4% in the net loss for the quarter. The increases in revenue and improvement in related margins was driven by the continued growth of Tysabri, which generated in-market sales of $237.0 million on a worldwide basis this quarter. Tysabri is fast approaching blockbuster status, defined in the industry as revenues exceeding $1 billion on an annual run-rate basis."

Cooke added,"For the remainder of the year, Elan is on track to record revenues approaching $1 billion and Adjusted EBITDA losses of less than $50 million for the full year 2008 as we continue to invest in our strategic portfolio of potential Alzheimer's products."

Results detail