Elan reduces losses as Tysabri boosts revenues

Dublin-headquartered pharmaceutical company Elan has said its total revenue increased by 18% to $352.1m (€238.5m) in the first half of 2008, compared to the same period in 2007.

The increase was driven by a strong performance from multiple sclerosis drug Tysabri.

The company's net loss decreased by 44% to $159.4m (€108m) in the first half of 2008, compared to $282.6m (€191m) for the same period in 2007, thanks in the main to Tysabri.

Tysabri earned the company $359.7m (€108m) in sales revenue in the first half of 2008, an increase of 199% over the $120.5m (€81.6m) recorded in the same period of 2007. The gross profit was $208.7m (€141m) for the first half of 2008, compared to $179.7m (€122m) for the same period of 2007.

However, the drug was recently hit with news of two additional confirmed cases of brain disease progressive multifocal leukoencephalopathy (PML) in patients using it. The news caused a freefall in Elan's share price, which lost 50% of its value. The two cases were the first observed since the reintroduction of Tysabri in the United States and approval in the EU in July 2006.

Elan said it would not withdraw Tysabri from the market as it had carried an explicit warning about the risk of PML since the drug was reintroduced in July 2006.

There are about 31,800 patients on Tysabri worldwide, with approximately 6,600 of these patients on therapy for 18 months or longer.

Elan's research and development expenses increased by 24% to $159m (€107m) in the first half of 2008, compared to $128.4m (€87m) for the same period in 2007. The increase was primarily related to the advancement of our Alzheimer's disease programmes.