UPDATE: Crucell Swings To 1Q Net Profit, Keeps Fiscal Year Guidance
May 06 2009 - 8:22AM
Dow Jones News
Biotech company Crucell NV (CRXL.AE) Wednesday said it swung to
a small net profit in the first quarter, partly due to strong sales
of its children's vaccine, and confirmed it's outlook for 2009.
The Leiden-based company reported a first quarter net profit of
EUR0.2 million after a net loss of EUR9 million last year, beating
analyst expectations for a net loss of EUR0.5 million, according to
a Dow Jones Newswires poll of 4 analysts.
Revenue and other operating income rose 54% to EUR73.9 million,
mainly driven by strong sales of Crucell's children's cocktail
vaccine Quinvaxem.
Crucell reiterated its guidance for 2009, saying it expects
combined full-year 2009 total revenue and other operating income to
grow by 20% in constant currencies.
Crucell's CEO Ronald Brus said that his company, together with
the Scripps Research Institute, is developing a new anti-influenza
antibody that is effective against a broad range of influenza virus
subtypes. Brus said he could not be more specific about the timing
of the introduction of the new medicine.
According to Crucell the flu vaccine market has a size of $2.2
billion and is estimated to double by 2016.
Crucell's profit and revenue growth in the first quarter was
driven entirely by Quinvaxem, which now accounts for about 70% of
the firm's sales and is a risk given the uncertainties about the
next round of Unicef tenders later in 2009 for this type of
vaccine, ING analysts say and they retain their hold rating and a
target price of EUR15.
Crucell CEO Brus said Crucell is optimistic about the Unicef
tender and that there are no real competitors yet in this
market.
SNS Securities analyst Ilja Zaanen said Crucell's first quarter
results didn't contain any surprises and that the firm has a
well-developed pipeline, with further improvements expected in the
rest of 2009. Zaanen is keeping a buy rating and a EUR22.50 price
target on the stock.
Petercam analyst Jan van den Bossche said that Crucell "remains
a very resilient investment", adding that its technology can
provide future benefits. He maintains a hold rating and EUR15.20
target price.
Crucell shares at 1145 GMT were up 2.7% at EUR15.60 and 28%
above year-ago levels.
- By Maarten van Tartwijk and Bart Koster; Dow Jones Newswires;
+31 20 571 5201; maarten.vantartwijk@dowjones.com