November 9, 2010 / 6:09 PM / 9 years ago

UPDATE 1-Genmab 9-mth loss narrows, US plant sale delayed

* Nine-month operating loss shrinks to 73 mln DKK

* Company says sale of U.S. plant delayed into 2011

* Includes Arzerra sales in new 2010 guidance

(Adds detail, background)

COPENHAGEN, Nov 9 (Reuters) - Danish biopharma firm Genmab GEN.CO on Tuesday said a planned sale of its U.S. manufacturing plant had been delayed into 2011 as it posted slimmer operating losses for the first nine months of the year.

The company adjusted its 2010 financial guidance, projecting higher full-year revenues and lower losses, but the new guidance included royalty income from sales from its Arzerra drug which had previously not been included so the upgrade was negligible.

Operating losses shrank to 73.4 million Danish crowns ($13.70 million) in January-September from 361.2 million in the same period last year, Genmab said.

Nine-month revenues grew to 490.9 million crowns from 393.2 million, the company said.

“Genmab is changing its 2010 financial guidance primarily as a result of a reduction in the fair value of the Minnesota manufacturing facility and a delay of the anticipated sale into 2011,” Genmab said. “We have also, for the first time, included Arzerra royalty income in the financial guidance.”

Genmab had said in August it was focused on reaching a deal to sell the Minnesota plant by the end of this year.

It said the fair value of the facility, less the cost of selling it, was reduced to $120 million from about $145 million as of Sept. 30.

ROYALTY INCOME

Arzerra, Genmab’s only drug on the market, is also known by its chemical name ofatumumab and has been sold by GlaxoSmithKline (GSK.L) as a blood cancer treatment since November 2009. Genmab is also carrying out clinical trials on ofatumumab for treatment of multiple sclerosis.

The company forecast full-year 2010 revenues, including 55 million crowns of royalties from Arzerra, to be from 575 million to 585 million crowns, up from a previously guided range of 475 million to 525 million.

“This improvement is mostly driven by the inclusion of the royalty income from Arzerra sales,” Genmab said.

The new guidance kept estimated Arzerra royalties for the fourth quarter steady at the third-quarter level due to the difficulty of predicting revenues for a product that has only been on the market for a short time, it said.

Genmab forecast a full-year operating loss from continuing operations in a range of 200 million to 250 million instead of an earlier outlook for a loss of 325 million to 375 million, mainly due to inclusion of Arzerra royalties and lower costs.

On September 30, Genmab had cash and marketable securities of 1.69 billion crowns, it said.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below