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OSI Loss Narrows

The company also files a supplemental application with the FDA.

OSI Pharmaceuticals

(OSIP)

reported better-than-expected results after the close on Monday.

The company reported a first-quarter loss of $32.5 million, or 64 cents a share, compared with a loss of $49.7 million, or $1.27 a share, a year earlier.

Excluding one-time charges, the Melville, N.Y.-based company's net loss was 60 cents a share. Analysts surveyed by Thomson First Call expected a loss of 68 cents.

Revenue was $19.1 million for the quarter, compared with the $18.4 million that analysts expected. OSI brought in $11.9 million more in revenue than a year earlier.

The company reported revenue of $11.7 million from its co-promotion with Genetech of the cancer drug Tarceva.

Genentech

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(DNA)

recorded Tarceva sales of $47.6 million. OSI also reported its first royalty revenue of $83,000 from its former partner Roche for Tarceva, following the approval and launch of the drug in Switzerland, which occurred late in the quarter.

On Monday, OSI and Genentech announced a supplemental new drug application filing to the Food and Drug Administration for the use of its molecular targeted cancer therapy Tarceva (erlotinib) plus gemcitabine chemotherapy for the treatment of pancreatic cancer.

The supplemental new drug application filing is based on a pivotal phase III trial evaluating Tarceva in patients with locally advanced or metastatic pancreatic cancer in which 569 patients received either Tarceva plus chemotherapy drug gemcitabine or gemcitabine plus a placebo.

Pancreatic cancer is difficult to treat, and few patients survive a year after diagnosis, says Dr. Hal Barron, Genentech's chief medical officer: "The improved survival observed in the phase III trial that is the basis for this filing represents a potential treatment advance for both patients and physicians."

While 24% of patients who received Tarceva plus gemcitabine were alive after a year, 17% of patients who received gemcitabine plus a placebo were alive a year later.

Tarceva is currently used as a second-choice treatment for non-small-cell lung cancer, after one prior treatment has failed.

OSI shares closed Monday down 40 cents, to $46.93. In after-hours trading, shares were down 94 cents, or 2% to $45.99.