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This excerpt taken from the ELN 6-K filed Mar 31, 2008. Investment
(Gains)/Losses
Net investment losses were $0.9 million in 2007, compared
to net gains of $1.6 million in 2006. The net investment
gains were primarily comprised of $6.6 million of gains on
the disposal of investments (2006: $8.3 million) and
impairment of investments of $6.1 million (2006:
$7.3 million).
The $6.6 million in gains on the sale of investment
securities in 2007 includes gains on sale of securities of
Adnexus Therapeutics, Inc. of $3.0 million and Women’s
First Heath Care, Inc. of $1.3 million.
The $8.3 million of gains on the disposal of investments in
2006 included a gain on the disposal of investments in Salu,
Inc. of $3.0 million, Nobex Corporation of
$2.5 million and Women First Heathcare, Inc. of
$1.0 million.
In 2007, we recorded an impairment of $5.0 million related
to an investment of $11.4 million in auction rate
securities. The remaining impairment of $1.1 million (2006:
$7.3 million) related to various investments in small
emerging pharmaceutical and biotech companies.
At 31 December 2007, all of Elan’s liquid investments
were invested in bank deposits and funds. In December 2007, due
to dislocations in the capital markets, one of these funds was
closed. As a result, the total carrying value of our holding in
the fund of $274.8 million (current: $268.1 million;
non-current: $6.7 million) at 31 December 2007 no
longer qualified as cash equivalents. The balance has been
reclassified as current and non-current available-for-sale debt
securities based on the expected liquidation of investments in
the fund. Since 31 December 2007, Elan has reduced the
amount invested in this fund to approximately $90 million
and has moved approximately $185 million into bank deposits
and U.S. treasury funds. In conjunction
98 Elan
Corporation, plc 2007 Annual Report
Table of Contents
Notes to the
Consolidated Financial Statements
with the closure of the fund, an impairment charge of
$3.8 million was incurred and has been included within
total interest income for 2007. There were no equivalent charges
in 2006.
This excerpt taken from the ELN 6-K filed Mar 30, 2007. Investment
(Gains)/Losses
Net investment gains were $1.6 million in 2006, compared to
net losses of $13.8 million in 2005. The net investment
gains were primarily comprised of gains on the disposal of
investments of $8.3 million (2005: $17.9 million) and
impairment of investments
Elan Corporation, plc 2006 Annual
Report 93
Table of Contents
of $7.3 million (2005: $31.7 million). The
$8.3 million in gains on the disposal of investments in
2006 includes gains on the disposal of investments in Salu, Inc.
of $3.0 million, Nobex Corporation of $2.5 million and
Women First Healthcare, Inc. of $1.0 million. The
$17.9 million of gains on the disposal of investments in
2005 included a gain on the disposal of investments in Allergy
Therapeutics, plc. of $10.0 million, Iomai Corporation
(Iomai) of $3.2 million, and Emisphere Technologies, Inc.
(Emisphere) of $1.7 million.
During 2006, investment impairment charges of $7.3 million
(2005: $31.7 million) reflect impairments to the value of a
number of investments, primarily in emerging pharmaceutical and
biotech companies. Impairments in 2006 primarily relate to
Targeted Genetics Corporation (Targeted Genetics) of
$3.0 million and Athersys, Inc. of $3.0 million.
Included in the 2005 charge were impairments related to
investments in Targeted Genetics of $12.4 million, Iomai of
$5.0 million and Glycogenesys, Inc. (Glycogenesys) of
$3.1 million.
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