ImClone Rallies on Mixed Results

Earnings exceed expectations but sales and net income disappoint.
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ImClone Systems

(IMCL)

reported earnings Tuesday morning that exceeded analysts' expectations, but the company's sales and net income fell short of estimates.

Earnings for the first quarter were $28.8 million, or 33 cents a share, compared with $62.7 million, or 76 cents a share, a year ago. Sales were $85.8 million compared with $110.2 million a year ago. The first quarter of 2005 saw a $43 million decline in license fees and milestone revenue due to amortization from a $250 million milestone payment received last year from

Bristol-Myers Squibb

(BMY) - Get Report

for its cancer drug Erbitux.

Basic earnings per share were 35 cents, compared to the 32 cents expected by analysts surveyed by Thomson First Call, and 83 cents in the first quarter of last year. Analysts expected net income of $29.44 million on sales of $92.57 million.

License fees and milestone revenue fell 64% to $24.5 million in the first quarter of 2005 because of Bristol's milestone payment in 2004. Manufacturing revenue fell to $11.0 million in the first quarter of 2005 from $25.5 million a year earlier. The decline was due to higher volume purchases by Bristol-Myers Squibb in the first quarter of last year to establish inventories for the quarter of launch, as well as lower pricing in 2005.

ImClone shares were recently up $1.22, or 3.9%, to $32.80.