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OSI Pharmaceuticals Swings to Profit

The results meet expectations. Revenue jumps 22%.

OSI Pharmaceuticals (OSIP) swung to a fourth-quarter profit, meeting expectations, as revenue jumped 22%.

The Melville, N.Y.-based biotechnology company said Thursday that it earned $10.4 million, or 18 cents a share, in the period, reversing a year-earlier loss of $223 million, or $3.85 a share. The 2006 results included a $231 million loss from discontinued operations.

Earnings from continuing operations totaled $17.7 million, or 29 cents a share, in the quarter, compared with $8.6 million, or 15 cents a share, a year earlier. The results on this basis matched Thomson Financial's average analyst estimate.

OSI's revenue rose to $84.3 million from $69.3 million the prior year, edging past Wall Street's expectation of $83.8 million.

As reported by OSI's partners

Genentech

(DNA)

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Roche

, year-over-year sales of cancer drug Tarceva increased 32% to $250 million in the quarter and 36% to $866 million.

Compared to 2006, full-year revenue from OSI's joint business for Tarceva, which is approved for non-small-cell lung cancer and pancreatic cancer, increased 9% to $169 million. OSI's revenue from royalties increased 90% to $95 million, and license, milestone and other revenue increased 113% to $77 million.

For the year, OSI reported net income from continuing operations of $102.6 million, or $1.70 a share, up from $6.7 million, or 12 cents a share in the year earlier. Revenue climbed 41% to $341 million for 2007.

Analysts anticipated full-year earnings of $1.66 a share on revenue of $340 million.

Shares of OSI closed up 11 cents, or 0.3%, at $39.67.