Crucell Q3 Profit Declines; Backs FY09 Forecast

11/3/2009 5:46 AM ET

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(RTTNews) - Dutch biopharmaceutical company Crucell N.V. (CRXL: News ) Tuesday reported a decrease in profit for the third quarter, reflecting higher cost of sales and higher taxes. The company reiterated fiscal-2009 outlook. Separately, the company said it established research collaboration with Calmune Corp. to develop, produce and market vaccines.

For the third quarter, the company's profit declined 22% to 10.02 million euros or 0.15 euros per share from 12.78 million euros or 0.19 euros per share in the year-ago quarter. Pre-tax profit was 14.67 million euros, up from last year's 12.17 million euros. In the most recent quarter, tax provision was 4.65 million euros, versus 614 thousand euros last year.

Quarterly revenues rose to 89.89 million euros from 78.6 million euros in the prior year.

Segment-wise, product sales increased to 83.7 million euros from 65.61 million euros in the previous year. License revenues were 3.76 million euros, lower than 10.36 million euros in earlier year. Service fees dropped to 2.43 million euros from 2.63 million euros on year.

In the latest quarter, total cost of goods sold rose to 55.15 million euros from 39.63 million euros in the prior year. Cost of product sales increased to 53.12 million euros from 37.46 million euros in the preceding year. As a result, gross margin were down at 34.74 million euros compared with 38.97 million euros in the comparable quarter last year.

For the first nine months, Crucell posted net profit of 8.38 million euros or 0.12 euros per share, compared to a net loss of 3.1 million euros or 0.05 euros per share in the preceding year. Pre-tax profit was 17.6 million euros, versus pre-tax loss of 2.2 million euros last year.

Total revenue for the nine-month period climbed year-over-year to 232.8 million euros from 177.57 million euros.

Further, Crucell said in the third quarter, it was granted a total of 22 patents.

Separately, Crucell said it established an exclusive research collaboration with Calmune Corp, a privately held biotechnology company. The collaboration focuses on research development, production and marketing of vaccines, proteins and antibodies that prevent and/or treat infectious diseases. Financial details of the agreement were not disclosed.

As part of the collaboration, Calmune will use SEBVI, a proprietary technology to prepare a panel of potent, high-affinity human monoclonal antibodies or hMabs against a pre-defined, undisclosed infectious disease target. Crucell obtained an option for exclusively license for these hMabs and for further evaluation as development candidates. The company will develop those identified candidates with the required profile. Calmune will receive milestone payments as well as a royalty on sales of products that incorporate antibodies generated by Calmune.