Biotechnology firm InterMune Inc (NASDAQ: ITMN) on Monday reported a net income for the second quarter to June 30, reversing a loss in the year-ago quarter, riding on revenues from its lung-scarring drug Esbriet and proceeds from the sale of its rights to Actimmune.
Lower-than-expected earnings however drove the shares of the California-based drug developer down 15.41 percent to $9.90 on Monday. The company’s overall earnings were $493,000 or about a penny a share in the June quarter, compared to a loss of $39.9 million or 70 cents a share in the year-ago quarter. Street estimates, according to FactSet, had pegged earnings at about 9 cents a share.
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InterMune’s revenues of $5.5 million in the quarter were all from the sale of Esbriet, which was commercially launched in September last year in Germany. Esbriet is used in the treatment of idiopatic pulmonary fibrosis, a chronic and fatal lung disease which induces inflammation and scarring in the lungs. The drug is approved for sale in several European countries but is yet to be approved in the United States.
Last month the company completed the previously announced sale of its rights to Actimmune, a drug used to treat immune system disorders, to Vidara Therapeutics International Limited making a gain of $55 million. The company said Actimmune’s past and current revenues and associated costs would be reported in discontinued operations in its financial statements from now on and did not appear in the comparisons regarding on-going operations.
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A rise in expenses on research and development, sales and general administration led to a 30 percent rise in its total cost and expenses to $54.1 million, the company said in its statement.