Millennium Pharmaceuticals ( MLNM) gave 2008 guidance Friday, with sales in line with expectations and net income predictions below the Street's view. The Cambridge, Mass.-based company is looking for adjusted net income of $80 million to $95 million. Cowen and Co. analyst Racheal McMinn, who was looking for closer to $144 million, said in a morning note that Millennium's view seems highly conservative. A difference between the estimates could be that the Street has factored in the expectation of a milestone payment based on the front-line multiple myeloma (MM) approval for Velcade in 2008, she noted. The stock was trading down 31 cents, or 3%, at $5.15 in recent trading. Sales of the company's lead product Velcade, increased 20% to $265 million in 2007, and Millennium said it's looking for sales to increase 20% to 30%, in a range of $320 million to $345 million in 2008. This is in line with analysts' expectations of $335 million. The drug is currently approved for non-Hodgkin's lymphoma and MM as a second-line treatment, or one used when initial therapy has failed. In December, Millennium presented positive data from two late-stage trials evaluating combinations of its Velcade as a first-line treatment for patients with multiple myeloma, and results suggested Velcade could be a stronger-than-expected rival to Celgene's ( CELG) Revlimid. The stock climbed nearly 10% on the data. "The past year was the most successful in the company's 15-year history with outstanding accomplishments across commercial, R&D and operations," said CEO Deborah Dunsire, in a release Friday. Full-year 2007 earnings will be released Feb. 7. Millennium and partner Johnson & Johnson ( JNJ) have applied to the Food and Drug Administration for front-line indication for Velcade, and a decision is expected this year.
Stocks soar as the gross domestic product rises at an annualized rate of 3.5% in the third quarter and continuing jobless claims fall. Gregg Greenberg recaps the action in The Real Story video (above).