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.
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