) reported earnings of 56 cents per share for the quarter ended
Dec 31, 2012, below the year-ago earnings of 78 cents per share.
Earnings were however ahead of the Zacks Consensus Estimate of 24
cents. Earnings fell short of the year-ago figure primarily due
to lower revenues.
We note that Pharmacyclics changed its fiscal year end from Jun
30 to Dec 31, effective from Dec 31, 2012.
Quarter in Details
Total revenue for the quarter ended Dec 31, 2012, declined 25.6%
to $58.0 million. Revenues during the quarter consisted of
license and milestone revenues along with collaborative service
revenues. Revenues beat the Zacks Consensus Estimate of $48
Pharmacyclics received a clinical milestone payment of $50
million in the reported quarter under its collaboration and
license agreement with Janssen Biotech, a
Johnson & Johnson
) company. The company has received milestone payments amounting
to $150 million under its agreement with Janssen so far.
Pharmacyclics is eligible to receive further payments up to $675
million under the agreement.
Pharmacyclics also has a collaborative agreement with
) under which Novo Nordisk acquired the worldwide rights of
Pharmacyclics' PCI-27483. PCI-27483 is being developed for the
treating a restricted indication outside oncology. The company
received $5 million from Novo Nordisk during the reported period.
Pharmacyclics' total operating expenses for the quarter ended Dec
31, 2012 came in at $16.7 million, up 4% year over year. The
company's general and administrative expenses increased 62.4% to
$6.4 million while research and development expenses declined 15%
to $10.3 million.
Pharmacyclics' lead pipeline candidate is ibrutinib which is
being developed in collaboration with Janssen. The company
currently has five late stage studies which are evaluating
Pharmacyclics' ibrutinib for the treatment of chronic lymphocytic
leukemia / small lymphocytic lymphoma (CLL/SLL) and mantle cell
We remind investors that in 2012 the company received orphan drug
and fast track designations in the US for ibrutinib for the
treatment of CLL. The candidate also enjoys orphan drug and fast
track designations for the treatment of MCL.
Pharmacyclics is also developing candidates for the treatment of
non-Hodgkin's lymphoma, refractory follicular lymphoma and
multiple myeloma (MM). Most of these candidates are in phase II
We expect investors focus to remain on the development of
ibrutinib. The company is in discussion with the regulatory
authorities to develop the candidate further. Pharmacyclics, a
biopharmaceutical company, currently carries a Zacks Rank #3
), another bio pharma stock, is much more favorably placed. It
carries a Zacks Rank #2 (Buy).
JOHNSON & JOHNS (JNJ): Free Stock Analysis
MEDIVATION INC (MDVN): Free Stock Analysis
NOVO-NORDISK AS (NVO): Free Stock Analysis
PHARMACYCLICS (PCYC): Free Stock Analysis
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