MGI Pharma Narrows Loss

The company beats Wall Street's estimates.
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MGI Pharma

(MOGN)

said Wednesday it narrowed its fourth-quarter loss, beating Wall Street's revenue and earnings estimates.

The Minneapolis-based company reported pro forma earnings of $7.2 million, or 10 cents a share, on revenue of $65.3 million, for the three months ended Dec. 31.

Wall Street had expected a loss of 2 cents a share, on revenue of $61.6 million.

On a GAAP basis, the company lost $1.84 million, or 3 cents a share. That compares to a loss of $36.9 million, or 58 cents a share, on revenue of $11.6 million for the fourth quarter of 2003.

The company offered a partial prediction for 2005, saying its revenue would reach $285 million, up from $195.7 million last year, which is in line with the consensus of analysts polled by Thomson First Call. MGI Pharma didn't offer EPS guidance. It said earnings from operations would be about $62 million.

MGI Pharma's sales for the fourth quarter and for fiscal 2004 reflected the strong growth of its signature product Aloxi, an injectable drug that prevents nausea and vomiting associated with cancer chemotherapy. The drug, which accounts for most of MGI Pharma's revenue, was developed by the private Swiss company Helsinn Healthcare; MGI Pharma holds the exclusive North American marketing rights.

MGI Pharma released its financial results after teh market closed. In regular trading, the stock lost 79 cents, or 3.4%, to $22.45. In after-hours trading, the stock recaptured 29 cents.