Intermune and Its Top Drug Beat Estimates

Intermune's (ITMN Quote - Cramer on ITMN - Stock Picks) third-quarter loss widened, but more importantly, sales of its leading drug, Actimmune, met Wall Street expectations.

Shares of the Brisbane, Calif.-based specialty pharmaceutical firm have doubled since the end of August, following the release of study results showing Actimmune to be the first and only effective treatment for idiopathic pulmonary fibrosis, a fatal disorder in which a patient's lungs fill with scar tissue. Intermune closed Thursday down nearly 2.6% to $34.98.

Third-quarter Actimmune sales totaled $28.5 million, compared to sales of $10.3 million in the year-ago period. Results matched or beat most Wall Street estimates by a small margin, although since the study's results were released Aug. 28, the larger impact on sales likely won't be felt until the current quarter ends.

Intermune reiterated previous Actimmune sales guidance of $95 million to $100 million for 2002. The company did not offer 2003 sales guidance in Thursday's release.

Net loss for the third-quarter totaled $43.5 million, or $1.39 per share, which included a $15 million licensing payment to Eli Lilly & Co. That compares to a net loss of $15.5 million, or 56 cents per share in the year-ago quarter.

Excluding that payment, Intermune lost $28.5 million, or 91 cents per share, in the quarter, which beat analyst estimates by 2 cents per share, according to Thomson Financial/First Call.

Total product sales in the quarter grew 167% to $30.2 million.