OSI 4Q Profit Drops, But Tarceva Sales Rise

From Associated Press (February 24, 2010)

MELVILLE, N.Y. -- OSI Pharmaceuticals Inc. said Tuesday its fourth-quarter profit plunged a year after the company received a hefty non-cash gain, but royalties from its cancer drug Tarceva continued pushing revenue higher.

The company earned $25.4 million, or 42 cents per share, down from profit of $341.5 million, or $5.22 per share, during the same period a year prior, when there was a $319 million non-cash gain for deferred tax assets.

Revenue rose 26 percent to $124 million from $98.4 million.

Analysts polled by Thomson Reuters expected profit of 43 cents per share on revenue of $119.8 million.

OSI received most of its revenue from its drug Tarceva, which treats lung and pancreatic cancer. It is sold in partnership with Genentech, which is now part of Roche. OSI received $100.8 million in Tarceva-related revenue, up 21 percent from a year prior. Other revenue, mainly from royalties on diabetes treatments, rose 57 percent to $23.1 million.

For the full year, the Melville, N.Y. company earned $75.9 million, or $1.29 per share, compared with profit of $441.6 million, or $7 per share, in 2008. Revenue rose to $428.1 million from $379.4 million.

Shares of OSI closed at $36.48 Tuesday.
 

Posted: February 2010


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