Biotech firm

SangStat

(SANG)

raised guidance for current-quarter earnings because of stronger-than-expected sales of its transplant rejection drug, Thymoglobulin.

The Fremont, Calif.-based company is now forecasting third-quarter earnings in the range of 9 cents to 11 cents per share, on revenue of $32 million to $34 million. Its previous guidance was for earnings in the range of 7 cents to 9 cents per share and $31 million to $33 million in revenue.

SangStat said it issued the rosier outlook because recent studies provide more evidence that giving organ transplant patients Thymoglobulin is an effective way of reducing or eliminating the need for a lifelong regimen of immunosuppressive drugs in order to prevent organ rejection.

Analysts were looking for SangStat to earn 8 cents a share in the current quarter, according to consensus estimates compiled by Thomson Financial/First Call.

SangStat issued the new earnings guidance after the close of Tuesday trading, where the company's shares closed down $1.41, or 7%, to $16.80. In afterhours activity, the stock recovered $1.10 of the day's loss.