SAN FRANCISCO ( TheStreet) -- Medivation's (MDVN - Get Report) marketing partner Astellas reported Xtandi sales of $14 million for the third quarter and forecast $100 million in sales for the newly launched prostate cancer drug through the end of its fiscal year on March 31, 2013.
Xtandi was developed by Medivation but is being sold by the Japanese drug maker Astellas, which reports sales.
Gauging a consensus for early Xtandi sales has been difficult but $14 million in third-quarter revenue is definitely higher than the Street expected given that Astellas only started selling the drug in the middle of September. Assume that a good chunk of third-quarter sales is wholesaler inventory stocking.
The guidance for $100 million in Xtandi sales through March 31, 2013 -- or six months into the drug's launch -- puts the drug on pace to meet Street expectations for the calendar year 2013."Taking into consideration potential sales ramp, Astellas' guidance could imply Oct.-Dec. 2012 sales of $30-35 million and Jan.-March 2013 sales of $51-56 million, favorably positioning Xtandi to at least meet expectations including consensus of approximately $225M, which includes estimates in the mid-$300 millions that we believe are bullish for the first-year of launch for any product," writes Jefferies analyst Biren Amin. FDA approved Xtandi in August for the post-chemo treatment of men with advanced prostate cancer. In this setting, Xtandi competes mainly with Johnson & Johnson's (JNJ - Get Report) Zytiga. Both drugs, however, are expected to eventually garner most of their sales in the larger and more lucrative pre-chemo prostate cancer setting, where they also threaten to replace Dendreon's (DNDN) Provenge. --Written by Adam Feuerstein in Boston.
>To contact the writer of this article, click here: Adam Feuerstein. >To follow the writer on Twitter, go to http://twitter.com/adamfeuerstein. >To submit a news tip, send an email to: firstname.lastname@example.org. Follow TheStreet on Twitter and become a fan on Facebook.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts