Elan Corp Chief Executive Kelly Martin said today that the Irish drugmaker remained on track to make a core loss of $50 million or less this year, with revenue seen growing to about $1 billion.
The Dublin-based group also repeated it expected to make a profit in 2010 thanks to growing sales of its flagship multiple sclerosis (MS) drug Tysabri.
Shares in Elan took a hit this week after Lehman Brothers analysts warned the market may be putting too high a value on Tysabri and potential Alzheimer's treatments under development with Wyeth.
Elan, recovering from a brush with bankruptcy in 2002, hopes growing demand for Tysabri will help ensure a return to profitability. Mr Martin said 26,000 patients were using Tysabri and prescriptions "should continue to accelerate".
The company has a target of 100,000 patients on the therapy by the end of 2010, and Martin told shareholders at Elan's annual meeting that was "very achievable".
"From a financial point of view for Elan, Tysabri is a critical asset," he said. "Roughly speaking, for every 10,000 incremental patients, we make $100 million in profit."
Tysabri, co-developed with U.S. partner Biogen Idec, returned to the market with tougher MS prescription guidelines in 2006 after sales were suspended in 2005 over links to a rare and potentially fatal brain disease.
The drug was also launched in the United States in March as a treatment for Crohn's bowel disorder.
"We hope to be in a position of breakeven on this part of the brand within 18 months," Martin said.
He said adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) for the year would be "negative 50 million (dollars) or less", in line with previous guidance.
"We expect revenue to grow roughly 30 percent to approach or slightly exceed $1 billion (in 2008)," he told reporters following the meeting.
Elan Chairman Kyran McLaughlin said the group expected to return to profitability in the latter part of 2009 before making a full-year profit in 2010.
Shares in Elan were up 0.8 per cent at €16.01 in Dublin by 3.23pm. The overall index was marginally ahead. Its London shares were 1.8 per cent higher.