Strong Rituxan Sales Push Idec Past Estimates
Idec Pharmaceuticals
(IDPH)
, as expected, reported a 33% jump in second-quarter earnings over last year, fueled by strong cancer drug sales.
The San Diego-based biotech firm reported net income of $35.4 million, or 20 cents per share, compared to net income of $25.2 million, or 15 cents per share, in the same quarter last year. Idec announced preliminary, second-quarter results last week.
Profits topped the Wall Street consensus estimate by a penny, according to Thomson Financial/First Call.
Second-quarter revenue grew 49% to $97.1 million, compared to revenue of $64.8 million in the year-ago quarter.
Idec co-markets the cancer drug Rituxan with
Genentech
(DNA)
, so the drug's second-quarter U.S. sales of $257.4 million were reported last week. Genentech records Rituxan sales on its books, and pays Idec royalty fees to Idec based on those sales. Idec recorded $92.5 million in Rituxan roayalties this quarter.
Sales of Zevalin, the company's second cancer drug, totaled $3.3 million in the quarter. The drug's strong performance took many Wall Street analysts by surprise, mainly because of a previously announced three-month delay in Medicare reimbursement for the drug.
Idec shares have jumped nearly 40% since July 10, when the company preannounced its better-than-expected results. The stock was up $2.77, or 7%, to $41.68 in Wednesday trading.
