Angiotech Pharmaceuticals (ANPI) fell 5.6% after it reported disappointing third-quarter results and said its full-year financials will likely fall short of estimates.
The company reported revenue of $86.3 million, mostly from its medical-products segment and royalty revenue, in the third quarter. Analysts surveyed by Thomson First Call were expecting $95.9 million. Angiotech earned $6.9 million, or 9 cents a share, but excluding charges, it would have had a profit of 19 cents. Still, analysts were looking for 20 cents a share.
Additionally, Angiotech reduced its full-year earnings and revenue guidance, partly because of costs it expects to incur in the fourth quarter for product development, sales and marketing. The company now sees a profit of 70 cents to 72 cents a share for 2006, down from its old projection of 79 cents to 81 cents a share.
The company expects to report revenue of $302 million to $306 million vs. its previous estimate of $325 million to $335 million. Product sales are expected to be $138 million to $140 million for the full year. Angiotech previously anticipated $155 million to $163 million.Shares of Angiotech were slumping 53 cents to $8.97. Allergan (AGN - Get Report), the company that makes the wrinkle treatment Botox, slipped after saying its earnings took a hit from rising expenses during the latest quarter. Adjusted profits still managed to beat Wall Street's estimates.