Today's other business stories in brief

Elan drug likely to net lower returns

Drug group Elan is likely to see lower revenue from European sales of its multiple sclerosis drug Tysabri this year and next, according to a report from stockbrokers Goodbody. Analyst Dr Ian Hunter says the failure to date to agree pricing for the drug in all but one of the major European markets will hold back revenues.

However, he said the superior efficacy of the drug compared to its rivals will see the drug ultimately achieve blockbuster status, despite the strict risk management procedures in the US and restrictions on its prescription in Europe because of a risk of contracting a rare brain disease.

Goodbody estimates that full-year revenues from the drug will now reach only $25.7 million (€20.4 million), compared to earlier estimates of $88.2 million. They are projected to rise to $664.7 million next year, lower than Goodbody's previous projection of $895 million. However, it still predicts sales of $1.4 billion and $2.1 billion in 2008 and 2009 respectively.

Island Oil and Gas reports losses

AIM-listed exploration company Island Oil and Gas has reported pretax losses of £411,000 (€607,733) for the year ended July 31st, 2006, compared to £127,000 the previous year.

The company, which owns 11 Irish offshore licences in the Celtic Sea and the Atlantic Margin, more than doubled turnover to £1.151 million from £484,000. This was attributed to increased production at the Seven Heads gas field off the Cork coast, combined with higher gas prices.

Chief executive Paul Griffiths commented on the company's performance: "Over the past year, Island has established itself as an accomplished operator and has drilled two successful gas wells." These wells are located in the Celtic Sea.

B of I predicts 6.6% GNP growth

According to Bank of Ireland's latest quarterly economic outlook, GNP growth is expected to average 6.6 per cent in 2006, having increased by 8 per cent in the first half of the year.

This growth has been fuelled by rising returns on Irish investments overseas, the group's chief executive Dr Dan McLoughlin said.

Employment in the State is expected to increase by 86,000 in 2006, but this is set to fall to 75,000 in 2007.

Sainsbury sales increase by 6.6%

British demand for healthy foods helped supermarket retailer

J Sainsbury beat forecasts yesterday with its seventh consecutive quarter of sales growth, but its shares fell on a tougher outlook.

Chief executive Justin King said second-quarter same-store sales, excluding fuel, rose 6.6 per cent, above analysts' forecasts thanks to customers snapping up more expensive healthy and fresh foods at Britain's third-largest supermarket retailer. Total sales for the 16-week period to October 7th rose 8.0 per cent, excluding fuel.

Yet Mr King cautioned the rest of the year looked tougher, with inflationary pressures and rising energy and commodity costs. - (Reuters)