This excerpt taken from the ELN 6-K filed Mar 31, 2008.
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 Womens 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 Elans 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
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.
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
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.