CORRECT: Crucell Posts 2Q Net Loss, Keeps FY09 Guidance
August 11 2009 - 1:10PM
Dow Jones News
Biotechnology company Crucell NV (CRXL.AE) Tuesday posted an
unexpected second-quarter net loss, but confirmed its outlook for
2009, saying it expects vaccine sales will continue to boost
revenue this year.
The company, which makes vaccines for influenza, children's
diseases and hepatitis B, reported a second quarter net loss of
EUR1.8 million, after a net loss of EUR7.4 million a year earlier.
Three analysts polled by Dow Jones Newswires had expected a net
profit of EUR4.6 million.
The loss was due to high income tax charges and strong local
currencies in South Korea and Switzerland, where Crucell has
research & development and manufacturing facilities. The
stronger currencies also hurt margins, the company added.
Revenue jumped 29% to EUR72.4 million from EUR56.2 million, but
also coming in below analyst forecasts for EUR84.8 million.
The figure was mainly driven by strong sales of Quinvaxem, a
vaccine Crucell jointly developed with Swiss-based pharmaceutical
company Novartis AG (NVS) to protect against five potentially
deadly childhood diseases, including diphtheria and tetanus.
Still, Quinvaxem sales were weaker than expected due to the
delay of shipments into the second half of this year, Crucell
said.
Investors were disappointed. At 1109 GMT, Crucell shares were
down 3.1% at EUR16.86, in a slightly higher midcap market in
Amsterdam.
Crucell remains upbeat on its prospects, however, and reiterated
its guidance for this year, saying it expects combined full-year
2009 revenue to grow by 20% at constant currencies. Operating
profit will "improve significantly" compared to 2008, when Crucell
posted its first ever full-year net profit.
The Leiden-based company said that Quinvaxem is well-positioned
for the award of new tenders, including one from United Nations
children's agency Unicef. It also said that it sees rising interest
among governments for vaccines against infection diseases, since
the recent spread of swine flu.
Crucell's optimism mirrors the growth potential of the global
vaccine market and explains why big pharmacuetical companies are
increasingly eyeing this area, as blockbuster drugs go off-patent
and their revenues plunge as a result.
In January, Crucell pulled out of friendly takeover talks with
U.S.-based Wyeth (WYE), which is now set to merge with Pfizer Inc.
(PFE). Since then, there has been much speculation about another
possible deal, but Chief Executive Ronald Brus told reporters he
didn't comment on market rumors.
SNS Securities analyst Ilya Zaanen said Crucell's results have
improved year-on-year, but that sales and margins were below
expectations. She kept her buy rating on the stock though, saying
she expects Crucell will continue to benefit from strong Quinvaxem
sales and because it remains a take-over candidate.
Company Web site: http://www.crucell.com
-By Maarten van Tartwijk; Dow Jones Newswires; +31 20 571 5201;
maarten.vantartwijk@dowjones.com