Elan Corporation, plc (ELN), a neuroscience-based biotechnology company, Wednesday, reported a narrower loss before tax for the fourth quarter, as revenues grew 11% driven mainly by a 30% sales growth of multiple sclerosis drug Tysabri.
Loss before tax for the Dublin, Ireland based company decreased 11% to $57.3 million from $64.5 million reported for the comparable period last year.
For the quarter, net loss was $57.7 million or $0.10 per share compared to a profit of $169.5 million or $0.36 per share last year. Prior-year quarter had a $234 million benefit from income taxes.
On average, five analysts polled by Thomson Reuters expected the company to report net loss of $0.08 per share. Analysts' estimates typically exclude special items.
Total revenue improved 11% to $300.0 million from $269.8 million last year, primarily driven by growth in Biopharmaceuticals business. Four analysts' were looking for revenues of $296.25 million for the quarter.
Product revenue was $297.1 million compared to $264.8 million and Contract revenue was $2.9 million compared to $5.0 million last year.
Segment-wise, Biopharmaceuticals business revenue grew 28% to $231.9 million from $180.6 million last year, primarily due to solid growth in Tysabri sales. Tysabri, a multiple sclerosis drug, is co-marketed by the company's subsidiary Elan Pharmaceuticals Inc. and Biogen Idec Inc. (BIIB).
Total Tysabri sales improved to $200.5 million from $152.2 million last year, reflecting growing patient demand. Tysabri in-market sales improved 37% to $296.3 million from $216.3 million last year.
At the end of the quarter, approximately 48,800 patients were on Tysabri therapy worldwide, a 30% increase over 37,600 patients on therapy at the end of prior-year quarter. In-market sales and patient numbers grew by approximately 21% in the U.S. market and 40% in the rest of the world markets. During the fourth quarter, 2,600 patients were added, with 1,500 patients added in the rest of the world markets and 1,100 patients added in the U.S. Market.
Among other Biopharmaceuticals products, Azactam revenue increased 15% to $23.9 million from $20.8 million last year. The company will cease distributing Azactam effective March 31, 2010. Revenue from Prialt dropped to $3.1 million from $4.4 million last year, primarily a result of a change in distributor. Revenue from Maxipime increased to $3.8 million from $3.1 million last year. Elan will cease distributing Maxipime from September 30, 2010. Revenue from Elan Drug Technologies business segment dropped 24% to $68.1 million from $89.2 million last year, impacted by withdrawal or significantly decreased promotional efforts by clients in respect of Skelaxin, Tricor and Luvox. Revenues were also impacted by the scheduled expiry of supply agreements for some smaller legacy products. Total manufacturing revenue and royalties was $65.2 million compared to $84.2 million last year.
For the full year, net loss widened to $176.2 million or $0.35 per share from $71 million or $0.15 per share last year. Analysts expected the company to report a full year loss of $0.51 per share. Before tax, net loss was lower at $129.8 million compared to $297.3 million last year.
Total revenue improved 11% to $1.11 billion from $1.00 billion last year. Analysts were looking for revenues of $1.11 billion for the company.
Looking ahead, for full year 2010, the company expects total revenues to grow, driven by growth in Tysabri and the launch of products in Elan Drug Technologies' portfolio. Gross profit margin is expected in a range of 45% to 50%, reflecting increased proportion of revenues from Tysabri.
ELN shares closed Tuesday's regular trading session at $7.07 on the NYSE.
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