Tercica nears 2-year low on larger 1Q loss
Tuesday May 13, 2:15 pm ET
Tercica stock slides after 1st-quarter loss surpasses estimates and revenue falls short
NEW YORK (AP) -- Shares of Tercica Inc. fell to their lowest price in almost two years Tuesday after the biopharmaceutical company posted disappointing first-quarter results, including weak sales of key drugs and higher expenses.
Tercica's loss swelled 41 percent for the period to $17.5 million, or 34 cents per share, from $12.4 million, or 25 cents per share a year ago. Revenue more than tripled to $4.6 million from $1.3 million.
According to Thomson Financial, analysts expected a loss of 30 cents per share, on average, and $5.9 million in revenue for the Brisbane, Calif., company.
Sales of Tercica's growth hormone deficiency treatment Increlex rose to $3.4 million, from $1.1 million a year ago. The company posted $1 million in revenue from sales of Somatuline Depot, a treatment for acromegaly, a hormone disorder that can make the feet, hands, nose and mouth grow to unusually large sizes.
However, costs grew 58 percent due to larger sales and manufacturing costs, along with greater administrative expenses.
In Tuesday afternoon trading, shares fell 95 cents, or 19 percent, to $4.04 -- their lowest price since June 2006.
Baird analyst Christopher Raymond said Increlex revenue fell slightly from $3.6 million in the fourth quarter. He cut his revenue estimates and predicted larger losses, reducing his price target to $6 per share from $7.
However, Lehman Brothers analyst Jim Birchenough said he was encouraged that Tercica maintained its revenue outlook of $30 million to $37 million. He said the approval of Increlex in the European Union and Somatuline's launch in the U.S. will boost the company's results in the fourth quarter.
surf's up......crikey
