Chiron Misses on Lighter-Than-Expected Drug Sales

The biotech misses estimates by a penny a share on revenue that also was shy expectations.

Author:: Adam Feuerstein
Publish date:: Apr 24, 2002 5:57 PM EDT

Updated from 4:49 p.m. EDT

Chiron

posted lower-than-expected profits in the first quarter on weak drug sales.

The Emeryville, Calif.-based biopharmaceutical firm reported net income, before charges, of $41 million, or 21 cents per share, missing Wall Street consensus estimates by one penny. This compares to net income of $38 million, or 19 cents per share in the year-ago quarter.

On a reported basis, including charges related to Chiron's acquisition of Matrix Pharmaceuticals, the company lost $19 million, or 10 cents per share, in the first quarter.

Chiron's revenue was light in the first quarter. Total revenue rose just 5% to $252 million, well under Wall Street consensus estimates of $270 million to $280 million. First quarter net product sales rose just 3% to $174 million.

Chiron's vaccine business was the biggest drag on revenue, falling to $58 million in the first quarter, compared to $77 million one year ago. Sales of the company's Menjugate vaccine for meningitis C totaled $7 million in the first quarter, compared to $29 million in the year-ago quarter.

Sales growth in the company's drug business was also spotty. First quarter sales of TOBI, used to treat cystic fibrosis, totaled $36 million, compared to $33 million one year ago and $34 million in the fourth quarter of last year.

Sales of Betaseron, used to treat multiple sclerosis, rose 10% to $22 million in the first quarter, but fell from sales of $29 million in the fourth quarter last year.

On a more positive note, first-quarter revenue from the company's blood testing business rose more than 60% to $57 million.

On a conference call with analysts, Chiron executives forecast a stronger ramp-up of Menjugate and Procleix sales later in the year. The company also reiterated previous 2002 earnings guidance of between $1.10 per share and $1.20 per share. Analysts are looking for 2002 earnings of $1.15 per share, according to consensus estimates compiled by Thomson Financial/First Call.

Chiron closed down 56 cents to $42.87 per share in Wednesday trading.