Arzerra sales help Genmab turn loss to profit

Tue May 7, 2013 11:46am EDT

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COPENHAGEN, May 7 (Reuters) - Danish biotech company Genmab A/S swung to a first-quarter operating profit on the back of higher royalties and lower costs.

Genmab made an operating profit of 29 million Danish crowns ($5.1 million) in the three months through March, compared with a 44 million loss in the same quarter last year, Genmab said, reiterating its guidance for 2013.

The company, whose Arzerra drug is used to treat blood cancer and is its only product on the market, said it still expected an operating loss of between 40 million crowns and 90 million in 2013 and revenue of 540 to 580 million.

Operating expenses fell 5 percent from a year earlier, it added.

Arzerra, launched in November 2009, is also known by its chemical name of atumumab and is sold by GlaxoSmithKline .

First-quarter revenue rose 70 percent to 160 million crowns, mainly due to higher Arzerra royalties and milestone payments under the co-operation deal with GlaxoSmithKline.

At the end of the quarter, Genmab's cash position stood at 1.55 billion crowns, up 38 percent on the beginning of the year, and primarily related to proceeds received from the sale of a manufacturing facility, the company said.

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