Drug Developer Medivation Takes Bigger 3Q Loss
From Associated Press (November 10, 2011)
SAN FRANCISCO -- Medivation Inc. on Wednesday reported a bigger third-quarter loss than it did a year earlier as it continued to develop treatments for prostate cancer and Alzheimer's disease.
On Nov. 3, after the quarter ended, Medivation said it was stopping a clinical trial of its prostate cancer pill MDV3100 because it was clear the drug was working. An analysis showed men treated with MDV3100 lived 4.8 months longer than men who were treated with a placebo. The company's stock more than doubled in value.
Medivation said it lost $10 million, or 29 cents per share, compared with $5.4 million, or 16 cents per share, a year earlier. Its revenue from collaborations rose to $14.9 million from $14.4 million.
Analysts expected a bigger loss of 32 cents per share but also higher revenue _ $15.8 million, according to FactSet.
Medivation does not have any products on the market. It is developing MDV3100 in a partnership with Astellas Pharma of Japan, and is working Pfizer Inc. on Dimebon, a potential treatment for Alzheimer's disease and Huntington disease. The company said Wednesday that it is exercising an option to co-promote MDV3100 with Astellas. Medivation will provide half the U.S. sales and medical affairs support.
The company said that on Tuesday, the Food and Drug Administration agreed to conduct a faster review of MDV3100 for use after chemotherapy. Fast track reviews are intended to lead to faster decisions about drugs for serious illnesses or unmet medical needs.
Medivation and Astellas are running a second late-stage trial of MDV3100. The companies plan to meet with the FDA in early 2012 to discuss the regulatory pathway for the drug.
With the markets slumping, shares of Medivation lost $1.82, or 4.3 percent, to $40.44 Wednesday.
After the company released its results, after the markets closed, its stock rose $1, or 2.5 percent, to $41.44
Posted: November 2011