PDL BioPharma says 2Q revenue will fall 5 percent due to dispute with MedImmune over Synagis
Associated Press
06/15/10 3:01 PM PDT
INCLINE VILLAGE, CALIF. — PDL BioPharma Inc. said Tuesday it expects of about $120 million in revenue in the second quarter, which is 5 percent less than a year ago.
PDL said it does not expect any royalties from sales of respiratory virus treatment Synagis because of a royalty dispute with MedImmune, which markets the drug. The company said sales of the cancer drugs Avastin and Herceptin, along with Lucentis for macular degeneration and Tysabri for multiple sclerosis, all increased.
PDL gets royalty payments on sales of all of those drugs. Its royalties in the second quarter are based on sales from the first quarter of this year.
Analysts, on average, expected PDL to report $119.9 million in revenue for the second quarter, according to Thomson Reuters.
The shares rose 23 cents, or 4.3 percent, to $5.60 during the day.
The company said Avastin sales rose 23 percent and Herceptin sales grew 19 percent compared to the previous year, while Lucentis sales climbed 49 percent. Better overseas sales of all three drugs will help PDL's results. The company said Tysabri sales grew 25 percent.
PDL said its results will also be helped by a $1.5 million gain from foreign currency exchange rates.
In the second quarter of 2009, PDL reported $125.9 million in revenue. That included $18.9 million in royalty payments on Synagis, and a $12.5 million payment from Alexion Pharmaceuticals Inc.
MedImmune is a unit of British drugmaker AstraZeneca PLC. Avastin, Herceptin, and Lucentis are sold by Roche's Genentech division. Elan Corp. sells Tysabri.
