Abgenix Revenue Doubles

The biotech company's loss also narrows.
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Abgenix

(ABGX)

shares gained more than 10% Tuesday, after the company said it continued to pare down losses on second-quarter sales that were double last year's levels.

Abgenix announced a second-quarter loss of $60.6 million, or 68 cents a share, a slight improvement from the net loss of $66.7 million, or 76 cents a share, it had last year. Excluding all charges, the company said it would have lost $43.4 million, or 49 cents a share, missing the Wall Street estimate by a penny and worse than the loss of $38.7 million, or 44 cents a share, it had a year ago.

Heading into the release of earnings, which took place after the bell on Tuesday, shares of the company rose 66 cents, or 7.5%, to $9.28. After hours, shares tacked on another 52 cents, or 5.6%, to $9.80.

Revenue came in at $5.5 million, topping the Wall Street estimate and more than doubling the $2.4 million it had a year ago, boosted by rising milestone and licensing fees. The company, which said it expects revenue to vary from quarter to quarter, added that the second quarter also included contract manufacturing revenue.

Abgenix is best known for its lead product candidate, panitumumab, which is currently in testing as a third-line treatment for colorectal cancer. The company is partnering with

Amgen

(AMGN) - Get Report

on the research for the drug, which recently showed promising anti-tumor activity in colorectal cancer patients during Phase II trials.

Net expenses came in at $66.3 million, an improvement from the $70.3 million the company spent a year ago. The company said expenses in the latest quarter include a $17.2 million charge to write off assets related to its decision to wind down its catalytic antibody program.