Updated from May 11

OSI Pharmaceuticals

(OSIP)

shares fell Wednesday after reporting a second-quarter loss that was both wider than analysts had predicted and wider than the loss for the same period last year.

Late Tuesday the Melville, N.Y.-based biotechnology company said it lost $49.7 million, or $1.27 a share, on revenue of $7.2 million for the three months ended March 31. A consensus of analysts polled by Thomson First Call was predicting a loss of $1.03 a share. This was the fourth consecutive quarter in which OSI's results were worse than the consensus prediction.

A year earlier, the company lost $27.2 million, or 75 cents a share, on revenue of $7.6 million.

OSI is attracting attention thanks to its experimental cancer drug Tarceva, which is being co-developed with

Genentech

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and Swiss drug giant

Roche

. The drug is the main reason why second-quarter expenses and losses have accelerated, as OSI spends more money on its development and marketing.

The company expects to file an application for Tarceva with the Food and Drug Administration this summer. Under a best-case scenario, the drug could be launched during the first quarter of 2005. "We look forward to working closely with the FDA to make this important new medicine available to cancer patients as soon as possible," Colin Goddard, chief executive of OSI, said in a statement Tuesday.

Although OSI is still losing money, it's also gaining market capitalization.

OSI's stock leaped $52.96 -- closing at $91.10 -- on April 26 after the companies announced results of a late-stage clinical trial for patients with an advanced form of lung cancer, in which patients receiving Tarceva lived longer than those receiving a placebo. The test was conducted with patients who had previously received one or two regimens of chemotherapy for their disease.

(OSI did not provide specific data on April 26 for the most recent Tarceva clinical trial. Details are expected to be presented at the annual meeting of the American Society of Clinical Oncology which begins June 5.)

Even though the stock has dropped by nearly $25 since then, it's still up 250% in the last 12 months. In premarket trading, shares were recently down 97 cents, or 1.3%, to $73.03.