ImClone's Profits Decline

ImClone System's(IMCL Quote) quarterly earnings beat analysts' expectations Tuesday but fell year over year, as did U.S. sales of its cancer drug Erbitux.

ImClone reported earnings of $31.9 million, or 36 cents a share, compared with $37.2 million, or 42 cents a share, in the same period in 2006. Analysts surveyed by Thomson Financial were expecting 30 cents a share for the quarter.

ImClone said its total revenue was $150.5 million, compared with $149.9 million in the year-ago quarter.

As announced last week, sales of Erbitux, which ImClone licenses from Sanofi Aventis(SNY Quote) and is sold by Bristol-Myers Squibb(BMY Quote), were $319.2 million, a 16% increase, compared with $274.8 million in the 2006 quarter. Non-U.S. sales increased to $157.2 million from $102.5 in the year-ago quarter.

U.S. sales were $162.1 million, compared with $172.4 million in 2006, which the company said was partly because the 2006 sales were boosted by a one-time bolus of sales of $15 million related to pent-up demand for the drug for head and neck cancer.

Looking ahead, because of an amendment to an agreement with Bristol-Myers Squibb last week, ImClone estimates that in 2007 its contribution for clinical spending for cancer drug Erbitux will decrease by $35 million to $40 million.

Also of note, ImClone's chairman of the executive committee, Alexander Denner, said the company hopes to announce a CEO hire next month.

ImClone's shares were down 60 cents, or 1.8%, to $32.85.