InterMune Posts Net Loss, Missing Estimates

The company's fourth quarter revenue falls, hurt by lower sales of Actimmune.
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On February 26, 2009,

InterMune

(ITMN)

posted a Q4 FY08 net loss, hurt by lower revenue and impairment charge related to its auction-rate securities. Net loss widened to $32.34 million or $0.83 per share from $25.88 million or $0.67 per share a year ago. The latest quarterly results missed the consensus estimate of $0.72 per share loss.

InterMune's revenue fell 23.1% to $7.40 million from $9.63 million in the previous year's quarter, led by lower sales of Actimmune. Actimmune revenue dropped 25.3% to $6.58 million, hurt by lower off-label physician prescriptions for the treatment of idiopathic pulmonary fibrosis (IPF). Collaboration revenue, which includes upfront license fees and milestone payments derived from the company's agreement with Roche, remained unchanged at $818,000. Research and development costs increased 4.7% to $26.27 million, while general and administrative expenses rose 17.9% to $7.80 million. However, total costs and expenses fell 10.5% to $35.78 million, due to the absence of acquired research and development milestone payments.

During Q4 FY08, the Japanese Ministry of Health, Labor and Welfare granted approval to market pirfenidone for the treatment of IPF in Japan. Recently, InterMune raised net proceeds of $63.50 million with a follow-on public offer of 4.03 million common shares at an offer price of $16.35 per share.

Total revenue for FY08 decreased 27.8% to $48.15 million, as an increase in collaboration revenue was offset by lower Actimmune sales. Net loss for the year increased to $97.74 million or $2.51 per share from $89.60 million or $2.52 per share in FY07.

Looking forward to FY09, InterMune expects revenue of $40 million to $50 million. It anticipates research and development expenses of $90.00 million to $100 million, net of development costs reimbursement under the Roche collaboration. Moreover, general and administrative expenses are projected to be in the range of $35 million to $40 million.