Pharmacyclics posts wider fiscal 4th-quarter loss
SUNNYVALE, Calif. (AP) — Pharmacyclics Inc. said Wednesday it took a bigger loss in the fiscal fourth quarter as it continued research on its cancer drug ibrutinib.
The company reported greater research and development costs as it worked with its partner Janssen Biotech on studies of ibrutinib. The drug is being investigated as a treatment for chronic lymphocytic leukemia and mantle cell lymphoma in late-stage trials. The company has three other drugs in clinical or preclinical development.
Pharmacyclics posted a loss of $16.9 million, or 24 cents per share, in the quarter ended June 30. A year earlier it lost $11 million, or 18 cents per share. Revenue rose to $2.1 million from $1.4 million after the start of its collaboration with Janssen, a unit of Johnson & Johnson.
Analysts expected Pharmacyclics to report a loss of 29 cents per share and $1.7 million in revenue, according to FactSet.
Pharmacyclics' research and development spending rose to $15.4 million from $9.9 million. Under its partnership with Janssen announced in December, Pharmacyclics is responsible for about 40 percent of the costs of developing ibrutinib and Janssen handles the rest.
Janssen agreed to make upfront and milestone payments to Pharmacyclics of up to $975 million — including a $150 million upfront payment — and the companies will share profits from any sales of ibrutinib.
In its latest fiscal year the company reported net income of $12 million, or 17 cents per share. Pharmacyclics lost $35.2 million, or 59 cents per share, in fiscal 2011. Revenue increased to $82 million from $8.2 million.
The company received two more payments of $50 million each in August at the start of its new fiscal year as patients were enrolled in two studies of ibrutinib.
Shares of Pharmacyclics lost $4.13, or 5.9 percent, to $65.67 in afternoon trading. The stock is up 20 percent in the quarter to date and have more than quadrupled since the start of the year.