Tanox shares reach new high--because of Xolair, article in Houston Business Journal

Author:
Updated:
Original:

I found this article interesting--ran across it at work.

[url="http://houston.bizjournals.com/houston/stories/2006/02/27/daily19.html?jst=b_ln_hl"]http://houston.bizjournals.com/houston/stories/2006/02/27/daily19.html?jst=b_ln_hl[/url]

Houston Business Journal - 4:39 PM CST Tuesday (February 28, 2006) Tanox tops expectations, shares reach new high Tanox Inc.'s stock reached a new 52-week-high Tuesday as the biopharmaceutical firm significantly exceeded analysts' expectations for the fourth quarter ended Dec. 31.

Houston-based Tanox (NASDAQ:TNOX) posted net income of $9.8 million, or 23 cents per share, on revenue of $23 million for the 2004 fourth quarter compared with a net loss of $3.8 million, or 9 cents per share, on revenue of $5.6 million for the same period last year.

Analysts were predicting net income of 2 cents per share on revenue of $13.3 million for the quarter, according to Thomson First Call.

For the year, Tanox recorded a net loss of $19.4 million, or 43 cents per share, compared with a net loss of $10.3 million, or 23 cents per share, in 2004.

Meanwhile, revenue surged 118 percent in 2005 to $44.7 million, compared with $20.5 million for 2004.

The huge jump in 2005 revenue was largely attributable to higher royalty revenue from its asthma drug Xolair, according to company officials.

Net royalty revenue from sales of Xolair totaled $8.5 million for the fourth quarter of 2005, compared to $5.5 million in the prior year period. The drug's net royalty revenue from Xolair sales more than doubled to $29.4 million for all of 2005, compared with $13.3 million in 2004.

Tanox said the increased net loss for the year was mainly due to in-process research and development costs related to its acquisition of an anti-tissue factor program in the first quarter and expenses associated with re-commissioning activities at the company's manufacturing facility in San Diego.

"Tanox experienced a year of considerable success in 2005," said Tanox president and chief executive officer Danong Chen, who recently replaced Tanox Chairman Nancy Chang in the top posts. "We continued with our vision to evolve from a research and development organization into a product-focused company, with the long-term goal of commercializing our proprietary antibodies and achieving profitability for our shareholders."

Also during the year, Tanox got European approval for Xolair and reported positive Phase II clinical trial results of its HIV therapy, TNX-355.

Looking ahead, Chen says Tanox will have three products in clinical trials in 2006 in four separate disease indications, representing "an unprecedented level of clinical-trial activity for the company."

Tanox's stock closed Tuesday's regular trading session at $19.08, a gain of less than 1 percent, after having reached its 52-week-high of $19.91 earlier in the day.

Related