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OSI Pharmaceuticals


posted a third-quarter loss Monday that was greater than analysts had predicted.

Filing its financial results after stock markets had closed, the developer of cancer therapies said it lost $75.12 million, or $2.03 per share, for the three months ended June 30. OSI, based in Melville, N.Y., lost $29.44 million, or 81 cents a share, for the same period last year.

Excluding charges of $31.3 million, or 85 cents, related to its June acquisition of Cell Pathways, OSI said its adjusted third-quarter loss would have been $43.8 million, or $1.18 per share. However, the consensus estimate by nine analysts polled by Thomson First Call was for 98 cents for the three months ended June 30.

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Revenue rose to $8 million from $4.5 million. The company's stock closed up 2.6%, or 78 cents, at $30.63 in regular trading. But by 5:30 p.m. EDT in after-hours trading, the price was down to $30.

In its formal announcement, OSI added no new information about Tarceva,

the experimental drug being tested for several types of cancer -- most notably a type of lung cancer called nonsmall cell lung cancer and pancreatic cancer, both of which are in Phase III trials, the third and last tests to determine if the drug will be approved by the Food and Drug Administration.

The company is scheduled to present data Tuesday -- a followup to data disclosed in May at the American Society of Clinical Oncology -- at the 10th world conference on lung cancer in Vancouver, British Columbia, sponsored by the International Association for the Study of Lung Cancer.

The data cover early stages of testing Tarceva and Genentech's cancer drug Avastin on patients with nonsmall cell lung cancer who didn't respond to other therapies. OSI also will discuss its financial results on Tuesday in a telephone conference call with analysts and investors.

OSI said Monday that its larger third-quarter loss and operating expenses were due to its marketing of Novantrone, whose rights were acquired through a co-promotion agreement with the Swiss biotechnology company Serono, and Gelcair, whose marketing rights in North America were acquired in the Cell Pathways deal. Gelcair, an oral pain management gel, will be launched in the fall. Novantrone has been used for treating multiple sclerosis, for a type of leukemia and for prostate cancer that hasn't responded to hormone therapy.