ImClone Systems Inc. reported a decrease in earnings due in part to a drop in U.S. sales of the cancer drug Erbitux, a day after it and its partner disclosed plans to beef up efforts to broaden the product's label.
Global Erbitux sales for the second quarter were $319.2 million, up 16 percent from the $274.8 million reported in the year-ago quarter.
U.S. sales of the drug, which is approved for colorectal and head and neck cancers, were $162.1 million, down 6 percent from the $172.4 million reported last year. ImClone said the drop is attributable to Amgen Inc.'s approval later last year of Vectibix (panitumumab) for colorectal cancer, and a one-time bolus of $15 million in sales last year following approval in head and neck cancer.
ImClone's royalty revenue from Erbitux sales was $78.1 million, vs. $74.6 million for the second quarter of 2006. Its total revenues were $150.4 million vs. $149.9 million a year ago.
Net income for the second quarter was $31.9 million, or 36 cents per diluted share, compared to $37.2 million, or 42 cents per diluted share, in the year-ago period.
Erbitux released its earnings a day after it and partner Bristol-Myers Squibb Co. amended their Erbitux collaboration in an effort to increase development efforts to broaden the label to include other cancers. They are expanding development by "several hundred million dollars," with BMS funding that increase up to a certain threshold. (See BioWorld Today, July 31, 2007.)
ImClone said that deal will reduce its planned clinical spend in the coming years, with a $35 million to $40 million reduction expected this year. Erbitux (cetuximab) is a monoclonal antibody designed to inhibit the epidermal growth factor receptor.
ImClone' stock (NASDAQ:IMCL) fell 55 cents Tuesday to close at $32.90.
In other earnings news:
• OSI Pharmaceuticals Inc., of Melville, N.Y., reported net income of $29.3 million, or 48 cents per share, for the second quarter, vs. a net loss of $2.4 million in the year-ago quarter. Revenues for the quarter were $79 million, up 42 percent from last year. The increase primarily is due to the growth in revenues arising from worldwide sales of the EGFR inhibitor Tarceva (erlotinib) for cancer. Collaborators Genentech Inc. and F. Hoffmann-La Roche Ltd. reported $212 million in global Tarceva sales for the quarter, up 35 percent from the year-ago quarter period. OSI's stock (NASDAQ:OSIP) gained $1.12 Tuesday to close at $32.24.
• United Therapeutics Corp., of Silver Spring, Md., reported net income of $5.8 million, or 28 cents per basic share, in the second quarter, vs. $7.7 million and 33 cents per share last year. Revenues grew to $51.8 million, up from the $40.2 million reported a year ago. The increase resulted primarily from growth in sales of Remodulin (treprostinil), which is marketed for treatment of pulmonary arterial hypertension. United Therapeutics' stock (NASDAQ:UTHR) fell 47 cents Tuesday to close at $69.36.