Elan posted a smaller-than-expected fourth-quarter net loss of $0.06 per share today.
The cost of relaunching Elan's Tysabri multiple sclerosis treatment meant analysts had expected its net loss to widen to $0.24 per share for the three months to end-December from a $0.14 loss in the fourth quarter of 2005.
But revenues at $166.4 million came in at the top end of analysts' forecasts, and the company said it had also benefited from some one-off gains.
For full-year 2006, Elan's $91.1 million loss before interest, tax, depreciation and amortisation, adjusted to exclude share-based compensation, was smaller than the $150 million to $175 million loss guided by the company.
It was also less than half the $216.9 million loss reported for 2005.
Elan said it had been awarded $49.8 million in December following arbitration proceedings against King Pharmaceuticals and also had received a tax benefit of $9.3 million in the quarter.
"The outlook for the business is strong, and we are confident that we will advance to profitability in the foreseeable future," Elan Chief Financial Officer Shane Cooke said.