Earnings, Outlook Lift Kos Pharma

The company swings to a profit and raises its full-year earnings estimates.
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Shares of

Kos Pharmaceuticals


spiked 26% in midday trading following the company's announcement that it swung to a second-quarter profit and nearly doubled its full-year earnings outlook.

The company cited gross margin improvement and cost controls and said it now expects to earn $1.20 to $1.30 a share for the year, well above its original expectation of 65 cents to 75 cents a share.

Recently, shares of Kos were up $7.09 at $34.10 on the news.

Kos earned $11.2 million, or 31 cents a share, for the quarter ended June 30, compared with a loss of $10.3 million, or 50 cents a share, last year. Analysts were expecting 7 cents a share.

Revenue jumped 70% to $64.9 million from $38.3 million last year. The company cited a nearly 200% increase in sales of its Advicor cholesterol drug to $14.6 million and strong sales of Niaspan, which increased 51%.

The company projected full-year revenue of about $280 million. Analysts expect full-year earnings of 75 cents a share on sales of $275.3 million.