Pharmaceutical firm Elan said today it expects to report operating profit before other charges or gains "for the first time in several years" in 2010.
The company today reported a $57.7 million loss during the fourth quarter compared to net income of $169.5 million a year earlier.
Total revenue grew to $300 million from $269.8 million year-on-year.
Net loss before tax decreased by 11 per cent to $57.3 million from $64.5 million, due to a strong performance from the company's biopharmaceuticals business.
The Biopharmaceuticals division recorded operating profits, before other charges and gains of $17.7 million in the fourth quarter, as against a loss of $42.1 million in the same quarter a year earlier.
Elan reported adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of $59.4 million for the fourth quarter of 2009, compared to $26.7 million in the same period of 2008.
Research and development expenditure declined by 36 per cent due in part to the divestment of its Alzheimer's Immunotherapy Programme (AIP) in the third quarter. R&D expenses for the fourth quarter of 2008 included $31.3 million in relation to AIP.
During fiscal 2009 revenues at Elan grew by 11 per cent to $1.1 billion, led by a 30 per cent increase in revenues from Tysabri. The company reported adjusted Ebitda to $96.3 million, compared to $4.3 million in 2008.
The net loss before tax for the year decreased by 56 per cent from $297.3 million to $129.8 million partly due to a net gain associated with the $1.5 billion Johnson & Johnson deal announced in July 2009.
"During 2009, as the biotechnology industry continued to change significantly, we advanced our multi-year strategy for evolving the company. Our strategic transaction with Johnson & Johnson, now our largest shareholder, accelerated our positioning as a company that vigorously invests in science, technology and people while reducing inherent risks," said Kelly Martin, chief executive of Elan.
"In 2010, we will remain focused on building out Elan's unique mixture of science and technology while continuing to reduce risk and infrastructure so that we produce long term benefits for patients and provide a compelling investment thesis for shareholders," he added.
