Loss Narrows for Elan

The return of Tysabri will be the key factor in Elan's(ELN) performance this year, the company said Tuesday, but it didn't offer a specific sales prediction for the multiple sclerosis drug.

Last summer, Tysabri was reintroduced in the U.S. and launched in several European Union countries, 18 months after Elan and its partner Biogen Idec(BIIB) suspended it from the U.S. market following a suspected link to a potentially deadly brain disorder.

Shane Cook, Elan's chief financial officer, said the Ireland-based company is "confident [Tysabri] will be a blockbuster drug in MS."

Those comments came as Elan posted a fourth-quarter loss of $26.5 million, or 6 cents a share, on revenue of $166.4 million. For the same period in 2005, Elan lost $58.3 million, or 14 cents a share, and had revenue of $140.4 million. Tysabri produced a combined $30 million in fourth-quarter sales and $38.1 million for 2006.

"Our financial performance [in 2006] improved and our pipeline portfolio continued to progress," said Kelly Martin, Elan's president and CEO.

Tysabri aside, Elan predicted total sales will exceed $500 million in 2007 for product revenue, manufacturing revenue, royalties and contract revenue. Last year's top line was $560.4 million, including Elan's share of Tysabri's sales.

Even though Elan declined to give a sales forecast for the drug for this year, "on the basis of the initial take-up," the company believes growth in Tysabri revenue will drive its return to profitability.