) second quarter 2013 earnings (including stock-based
compensation expenses) of 16 cents per share compared favorably
with the year-ago loss of 24 cents and the loss of 4 cents hinted
at by the Zacks Consensus Estimate. Results in the quarter were
aided by higher revenues.
Total revenue for the second quarter of 2013 increased to
$54.7 million from $2.1 million a year-ago. Revenues during the
quarter consisted solely of collaborative service revenues.
Revenues were above the Zacks Consensus Estimate of $52 million.
The massive jump in revenues during the second quarter of 2013
was due to the $50 million received by Pharmacyclics from partner
Janssen Biotech, a
Johnson & Johnson
) company. In Apr 2013, Pharmacyclics received the clinical
milestone payment from Janssen pertaining to the development of
oncology candidate ibrutinib (PCI-32765) for the chronic
lymphocytic leukemia /small lymphocytic lymphoma indication.
Pharmacyclics has received milestone payments of $200 million
under its agreement with Janssen so far. Pharmacyclics is
eligible to receive further payments up to $625 million under the
Pharmacyclics' total operating expenses for the second quarter
of 2013 jumped to $42.6 million from $19.6 million. Both general
and administrative as well as research and development expenses
were on the upswing during the second quarter of 2013. The huge
increase in operating costs was primarily attributable to the
company's efforts to develop its pipeline and increased personnel
Pharmacyclics is looking to break even for 2013. Currently,
the Zacks Consensus Estimate hints at a loss of 99 cents.
At first glance, Pharmacyclics's second quarter results look
impressive. However, revenues included the milestone payment of
$50 million from Janssen. We expect investor focus to remain on
the development of ibrutinib. The candidate is being developed
for multiple oncology indications in collaboration with
Pharmacyclics, a biopharmaceutical company, carries a Zacks
Rank #3 (Hold).
Gilead Sciences Inc.
) appear to be more attractive in the biopharma space with a
Zacks Rank #1 (Strong Buy).
GILEAD SCIENCES (GILD): Free Stock Analysis
JOHNSON & JOHNS (JNJ): Free Stock Analysis
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PHARMACYCLICS (PCYC): Free Stock Analysis
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