Ireland's Elan Targets Profitability, Reports Improved 2004 Results

Irish drugmaker Elan has reported a reduction in net losses for the year from US$508.7mn in 2003 to US$375.9mn in 2004. Despite a nearly 30% fall in sales revenue in the year to US$481.7mn, contract manufacturing and royalties increased by a strong 9.1% in 2004, and by 40.6% in the fourth quarter alone.

The performance of the company's two antibiotics, Maxipime (cefepime) and Azactam (aztreonam) was uneven during the year, although the company hopes that new products such as Tysabri and Prialt will return the company to profitability by end 2006. Elan is also reported to be working on a novel drug delivery system based on nanotechnology, which has already received a Japanese patent.

Meanwhile, Elan has settled a US Securities and Exchange Commission case alleging that the company infringed federal securities laws. A fine of US$15mn has been ordered, and the company has set aside US$55mn against the cost of the issue.