MGI Loses Less Than Expected

However, the drug developer's revenue misses estimates.
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MGI Pharma

(MOGN)

reported a narrower-than-expected first-quarter loss Wednesday, but sales came in just short of estimates.

The Bloomington, Minn., drug developer reported a quarterly loss of $2.8 million, or 4 cents a share. Excluding certain charges, MGI lost $1 million, or 1 cent a share. Analysts were expecting a loss of 5 cents.

Sales in the first quarter totaled $78.2 million, but the consensus projection was for $79.4 million. In the first quarter of 2005, MGI had sales of $63.2 million.

U.S. sales of MGI's Aloxi injection were $63.3 million, up from $57.2 million in the year-ago quarter. Sales of MGI's Gliadel Wafer brought in $9.7 million vs. $7.3 million last year.

In the second quarter, MGI expects to hear from the Food and Drug Administration on the status of its drug Dacogen, a proposed treatment for myelodysplastic syndrome.

"With the May 15

FDA action date for Dacogen just weeks away, we are focused on our prelaunch activities in support of a potential product launch," said Lonnie Moulder, MGI's president and CEO.

For the full year, MGI expects to report revenue between $370 million and $385 million, including Aloxi sales of $285 million to $300 million. Gliadel sales should be $40 million, and Dacogen sales are forecast at $25 million, if the drug is approved by the FDA during the second quarter.

MGI's shares were up 3.6% to $17.80 in regular trading and rose another 1.1% after hours.