Financial Report: Elan 1Q

Elan 1Q

1Q Revenues: $245.1 million (+14%)

1Q Loss: $102.6 million (loss of $85.5 million in 1Q08)

Comments: Biopharmaceutical business revenue was up 28% driven by Tysabri sales, offsetting reduced sales of Azactam and Maxipime. Elan recorded $158.7 million of Tysabri sales (+48%) in the quarter. Revenue from the Elan Drug Technologies (EDT) business dropped 14%, due to timing differences of milestone payments earned and customer orders. The increase in losses primarily relates to severance and restructuring charges of $22.2 million and non-cash asset impairment charges of $15.4 million. These charges relate to the previously announced postponement of Elan’s biologics manufacturing activities.