Elan Corporation, today announced its first quarter 2008 financial results, which were boosted by Tysabri sales and provided a business update.

Total revenue increased by 22% in the first quarter of 2008, compared to the same period in 2007. The increase was driven by a strong performance from Tysabri, which achieved in-market sales of $159.7 million during the first quarter of 2008 and more than compensated for reduced sales of Maxipime.

The gross margin was $103.9 million for the first quarter of 2008, compared to $103.1 million for the same quarter of 2007, with increased gross margin earned from higher sales of  the MS (multiple sclerosis) drug Tysabri replacing lost gross margin following the introduction of generic Maxipime.

The net loss for the first quarter of 2008 decreased by 8% to $85.5 million from $93.0 million in the first quarter of 2007, primarily due to the inclusion of a net charge on debt retirement of $18.8 million in the first quarter of 2007, partially offset by an increase in net interest expense due to lower cash balances and reduced interest rates.

Commenting on Elan's business, Kelly Martin, Elan's president and chief executive officer, said, "We continued to demonstrate successful execution and delivery of tangible results in the first quarter. We remain highly focused on advancing our mid to late stage clinical pipeline as well as supporting physicians and their patients in choosing Tysabri in MS and also now in Crohn's. Our disciplined management and the repeatability of our scientific process combined with risk minimization enable Elan to pursue a unique pathway forward in what remains a challenging and changing global industry environment."

Commenting on Elan's first quarter financial results, Shane Cooke, Elan's executive vice president and chief financial officer, said, "We are very pleased with the strong start to the year, highlights of which include: a 22% increase in revenues; the approval and launch of Tysabri in Crohn's disease; the continued advancement of our development pipeline; and strong cost control reflected in an 18% reduction in SG&A costs, which more than offset increased R&D costs." 

Cooke added, "We are particularly pleased to see the acceleration in the number of new patients who are benefiting from Tysabri, with over 26,000 on therapy at the end of March 2008. This increase underscores our confidence that Elan's total revenues for this year will approach the $1 billion mark and that we will achieve our target of having 100,000 patients on Tysabri therapy by the end of 2010."

Full Results