ImClone 2Q Profit Climbs on Erbitux Sales

NEW YORK – ImClone Systems Inc. said Tuesday its second-quarter profit rose 7 percent on continued strong sales of its Erbitux cancer drug.

Quarterly income increased to $26 million, or 30 cents per share, from $24.3 million, or 29 cents per share, a year earlier. Excluding expenses related to certain discontinued research, ImClone said it would have earned 37 cents per share.

Revenue grew 25 percent to $92.4 million from $73.8 million.

Adjusted profit results easily beat analysts’ expectations for earnings of 33 cents per share, though sales were expected to come in higher at $95.8 million, according to a Thomson Financial survey.

Sales of the company’s Erbitux colon cancer treatment rose 37 percent from a year ago to $97.8 million. That represents a 12 percent increase from the first quarter. Royalty payments on U.S. sales of the drug – paid by partner Bristol-Myers Squibb Co. – totaled $38.1 million this quarter, up from $34 million in the first quarter.

Erbitux works by blocking tumor cell growth, providing a targeted therapy much like Genentech Inc.’s Avastin and AstraZeneca PLC’s Iressa. It is approved to treat colon cancer that has not responded to other treatments and that has spread to other parts of the body.

ImClone shares closed Monday down 2.4 percent at $35.08 on the Nasdaq Stock Market. ImClone shares were worth as much as $67 in the fall, but have been trading below $40 since March.