Millennium: Loss Widening

Millennium Pharmaceuticals (MLNM Quote - Cramer on MLNM - Stock Picks) said Monday that its 2003 net loss will grow, despite higher sales, and that profitability will not come until at least 2006, two years later than previously forecast.

In addition, Millennium warned that it did not meet current-year revenue and net loss estimates, although detailed results will not be released until later this month. On a more positive note, the company did say that sales for its blood clot-fighting drug, Integrilin, did grow 30% to $304 million in 2002, as expected.

The Cambridge, Mass.-based biopharmaceutical firm was expected to lose 97 cents per share on nearly $358 million in revenue, according to the consensus estimate compiled by Thomson Financial/First Call.

Millennium offered its revised financial outlook as part of its presentation at the J.P. Morgan H&Q Healthcare conference, which kicked off Monday in San Francisco. Millennium's acknowledgment that profitability would be delayed to 2006 from 2004 was widely expected by many of the fund managers in the audience.

Looking ahead, the company is now forecasting a net loss in 2003, excluding anticipated restructuring charges, in the range of $290 million to $320 million. Total revenue in 2003 should reach a range of $450 million to $475 million, including 20% growth in Integrilin sales to $365 million. (The remaining revenue will come from new strategic partnerships, the company said.)

During a breakout session with fund managers, Millennium executives said the company's long-term plan forecasts the net operating loss falling to $200 million in 2004, $100 million in 2005 and profitability coming in 2006.

Of course, these plans depend on a variety of factors, including the approval of Velcade, Millennium's experimental cancer drug. The company is expected to file an approval application for Velcade with the Food and Drug Administration in the first quarter.

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