This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

NitroMed Hits New Low

NitroMed's (NTMD) shares hit an all-time low Thursday as the Lexington, Mass., drugmaker withdrew its full-year sales guidance.

The stock was off 98 cents, or 26%, to $2.77, and hit an intraday low of $2.70, its worst level ever. NitroMed went public in late 2003.

The company pulled its forecast after posting a second-quarter loss of $18.3 million, or 50 cents a share, on sales of $2.86 million. Analysts polled by Thomson First Call had expected a loss of 61 cents and sales of $4.6 million.

For the same period last year, NitroMed lost $22.6 million, or 75 cents a share, on revenue of $398,000.

NitroMed has struggled with sales of BiDil, a congestive heart failure drug for African-Americans, the only drug approved by the Food and Drug Administration for an ethnic group.

The company has had trouble convincing managed-care firms to provide the drug with low copayments. BiDil, which reached the market in July 2005, combines two existing drugs that have lost patent protection. Early sales efforts were hampered by an inadequate performance by a contract salesforce. The company has since hired its own sales representatives.

"We are optimistic about our second-quarter achievements in the priority areas of reimbursement and salesforce productivity," said Kenneth Bate, the chief operating officer and chief financial officer.

"However, because of the difficulty at this time of quantifying the impact of those achievements on BiDil prescription growth, as well as the variability in prescription numbers to date, we are withdrawing our previous net sales guidance of $20 million for 2006, at least until we are able to base such a projection on more consistent trends," he continued.

The company said it has signed agreements with two large pharmacy-benefit management firms to get BiDil placed in a preferred position in their formularies, which are lists of approved drugs. The move should lead to lower out-of-pocket payments for patients.

"By July 1, based on the company's best estimates using external and internal data sources, 40% to 50% of insured African-Americans over age 45 had access to BiDil at a copay of $25 or less," NitroMed said. Second-quarter prescriptions grew 20% from the first quarter.

By June 30, NitroMed had cash, cash equivalents and marketable securities worth $71.7 million.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $109.50 0.00%
FB $92.47 0.00%
GOOG $639.16 0.00%
TSLA $226.72 0.00%
YHOO $32.37 0.00%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs