Millennium Pharmaceuticals' ( MLNM) says it's on track to meet its 2006 goals. Millennium reported a 15% increase in product sales to $220 million in 2006. For 2007, the company expects overall product sales to reach $240 million to $260 million. Millennium entered an agreement with Johnson & Johnson ( JNJ) company Ortho Biotech for its blood cancer drug Velcade in October 2006, but it doesn't expect to see a significant impact on sales until the second half of this year. "We expect an increase in Velcade sales throughout the year, but we wouldn't go as far as to call it flat" at the beginning of the year, says CEO Dr. Deborah Dunsire. "I think we've been relatively conservative on the estimates." While the drug developer reported $48 million in 2006 milestone payments through the J&J co-promotion agreement, it doesn't anticipate any material milestones in 2007, the company said in a conference call Friday morning. Additionally, Millennium says it doesn't expect any of its pipeline drugs to enter phase III trials, a stage of studies conducted just before a drug is submitted to the Food and Drug Administration for marketing approval. While phase I and phase II trial results generally provide early safety and efficacy data on a few dozen to a few hundred patients, results from much larger phase III trials are considered a better indicator of a drug's efficacy.
In recent years, the company has been focusing its resources on expanding Velcade uses over supporting its research-and-development pipeline. While Millennium remains open to possible acquisitions in the coming year, the company says they're not necessary for it to achieve its 2007 goals. For all of 2006, the company says it reduced its net loss according to generally-accepted accounting rules and reached non-GAAP profitability. Overall for 2007, the drugmaker expects non-GAAP net income of $10 million to $20 million, or a GAAP net loss in the range of $60 million to $90 million. The company expects to receive royalty payments between $140 million to $150 million. While Millennium reported some preliminary results Friday, the company is slated to present a full earnings report on Monday, Feb. 8. Shares were trading 4 cents lower to $11.01 Friday.