MGI Pharma ends quarter with $127 million; company continues to predict operating loss

By Angela McDaniels

Seattle, Oct. 18 - MGI Pharma, Inc.'s cash and marketable debt securities increased by 22% to $127.0 million at Sept. 30 from $104.2 million at Dec. 31, 2005, according to a company news release.

For fiscal 2006, the company continues to expect total revenue of between $250 million and $270 million and an operating loss of between $15 million and $30 million.

Total revenue increased by 43% to $97.0 million for the third quarter ended Sept. 30 from $67.9 million for the same quarter of 2005.

Net product sales increased by 44% to $95.5 million for the third quarter from $66.4 million for the prior-year period. The company attributed the increase primarily to higher sales of Aloxi (palonosetron hydrochloride) injection, the commercial launch of Dacogen (decitabine) for injection and the inclusion of sales of Gliadel Wafer (polifeprosan 20 with carmustine implant) following the 2005 acquisition of Guilford Pharmaceuticals Inc.

GAAP net income fell to $1.7 million, or $0.02 per diluted share, for the third quarter from $12.9 million, or $0.17 per diluted share, for the third quarter of 2005.

Total costs and expenses increased by 73% to $94.4 million for the third quarter; selling, general and administrative expenses increased by 130% to $38.4 million and research and development costs increased by 43% to $21.2 million.

The company attributed the cost increases to its investment in the Aloxi brand, the deployment of an acute care field organization, higher administrative costs, pivotal program expenses for Aquavan (fospropofol disodium) injection and amolimogene (HPV E6 E7 plasmid) and the addition of early stage research capabilities.

MGI Pharma is a Minneapolis-based biopharmaceutical company that develops products for the oncology and acute care markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.