US biopharmaceutical group MGI Pharma turned in a pleasing set of results for the second quarter of 2007, swinging back into profit on reduced expenses and growing sales.
The group managed to swing back into profit during the period, posting net income of $2.1 million, or $0.03 per diluted share, versus a loss of $19.4 million, or $0.25 per diluted share, a year earlier.
Growth was driven by a comfortable increase in revenues, which grew 6.6% to $87.2 million, boosted by sales of Dacogen (decitabine) for the treatment of myelodysplastic syndromes, which hit $30.2 million following its market launch mid-2006, and the brain tumour drug Gliadel Wafer (carmustine implant), up 25% at $10.5 million.
On the downside, US turnover of Aloxi (palonosetron hydrochloride) Injection for chemotherapy-induced nausea and vomiting dropped more than 28% to $48.3 million, as generic competition ate into the product’s market share.
Expenses fall
While SG&A expenses jumped 25% to $44.3 million, a dip in cost of sales (down 13% to $29.4 million) and R&D (-39% to $17.1 million) during the quarter helped to reduce loss for the period.
“We are extremely pleased with our results for the second quarter,” said Lonnie Moulder, President and Chief Executive Officer of the company. “We are greatly encouraged by the strong performance of Dacogen, which continued to gain share in the market for treatment of MDS.” And, looking forward, she said: “The supplemental New Drug Application for Aloxi in the post-operative nausea and vomiting indication was accepted for filing by the Food and Drug Administration, and we remain on track to submit our NDA for [the sedative] Aquavan (fospropofol disodium) during the third quarter.”
