) first quarter 2013 loss of 73 cents per share was wider than
the year-ago loss of 19 cents and the loss of 8 cents hinted at
by the Zacks Consensus Estimate. The wider loss was attributable
to higher costs incurred by the company during the first quarter
Total revenue for the first quarter of 2013 climbed 47.7% to $2.8
million. Revenues during the quarter consisted solely of
collaborative service revenues. Revenues were way below the Zacks
Consensus Estimate of $20 million. Lower-than-expected revenues
were also responsible for the wider-than-expected loss.
We note that Pharmacyclics received a clinical milestone payment
of $50 million last month under its collaboration and license
agreement with Janssen Biotech, a
Johnson & Johnson
) company. This payment is not included in the first quarter 2013
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 first quarter of
2013 jumped to $55.8 million from $19.9 million. The company's
general and administrative expenses increased 400% to $20 million
while research and development expenses climbed 126.6% to $35.8
The huge increase in operating costs was primarily attributable
to the company's efforts to develop its pipeline and increased
personnel related costs.
Pharmacyclics is looking to break even for the second quarter and
the full year 2013. While the Zacks Consensus Estimate for
the second quarter of 2013 hints at earnings of 1 cent per share,
it is a loss of 39 cents for full year 2013.
We expect investor focus to remain on the development of
Pharmacyclics' lead pipeline candidate ibrutinib. The candidate
is being developed for multiple oncology indications in
collaboration with Janssen.
Pharmacyclics, a biopharmaceutical company, carries a Zacks Rank
) too carry a Zacks Rank #2 in the biopharma space.
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