This excerpt taken from the ELN 6-K filed Mar 31, 2008.
Product Revenue from our EDT Business
Manufacturing revenue and royalties are as follows:
Manufacturing revenue and royalties from our EDT business comprise revenue earned from products we manufacture for third parties and royalties we earn principally on sales by third parties of products that incorporate our technologies.
Manufacturing revenue and royalties increased 17% to $269.0 million in 2007 from our 2006 sales level of $230.2 million. The increase primarily reflects continued growth across a number of products in our EDT portfolio and increased manufacturing activity.
40 Elan Corporation, plc 2007 Annual Report
Except as noted above, no other single product accounted for more than 10% of our manufacturing revenue and royalties in either 2007 or 2006. In 2007, 47% of these revenues consisted of royalties received on products that we do not manufacture, compared to 44% in 2006.
Potential generic competitors have challenged the existing patent protection for several of the products from which we earn manufacturing revenue and royalties. We and our clients defend our intellectual property rights vigorously. However, if these challenges are successful, our manufacturing revenue and royalties will be materially and adversely affected.