Elan reports revenue increase

Elan Corporation, plc today announced 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 US$759.4m (€521.3m) from $560.4m (€384.7m) in the full-year 2006.

Total revenue for the fourth quarter of 2007 increased 31% to $218.3m (€149.8m) from $166.4m (€114.2m) in the same period of 2006.

Total revenues are expected by the company to grow by more than 30% from the 2007 level and approach, if not exceed, $1bn (€686,528), driven by a continued strong performance from Tysabri.

The gross profit margin is expected to be in the range of 43% to 48%, reflecting the increasing proportion of revenues from Tysabri.

Aggregate SG&A and R&D expenses are expected to be in the range of $625m (€429m) to $675m (€464m).

Elan’s investment in R&D is expected to make up more than 50% of that spend, and will fund the increasing number of late-stage clinical trials in Alzheimer’s disease, as well as expanded efforts in autoimmune diseases, particularly as it relates to Tysabri.

Adjusted EBITDA for Elan is targeted to be less than negative $50m (€34.3m) for the full-year 2008, and to get to breakeven in the second half of 2008.

The company expect to make a milestone payment of $75m (€51.5m) to Biogen Idec during 2008, in order to maintain the company’s percentage share of Tysabri at approximately 50% for annual global in-market net sales of Tysabri that are in excess of $700m (€480.6m). This payment is not reflected in the financial guidance above.

"Our key operating principles of patient focus, disciplined execution, and delivery of tangible results and outcomes were achieved in 2007,” said Elan's president and chief executive officer Kelly Martin.

“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 ongoing progress in our preclinical 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.”