Tuesday, Onyx Pharmaceuticals, Inc. (ONXX) reported a lower profit for third quarter, hurt by higher expenses which more than offset the increase in the revenue.
Onyx's third quarter net income decreased to $8.2 million or $0.14 per share from $12.2 million or $0.21 per share in the same quarter last year.
Results for the quarter reflects growth in Nexavar sales and lower Nexavar commercial expenses, offset by expanded clinical development efforts, lower investment income and interest expense on the convertible senior notes issued in August.
For the current quarter excluding items, net income increased to $22.2 million or $0.35 per share from $16.6 million or $0.29 per share in the prior year quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total revenue for the quarter went up to $69.1 million from $50.8 million in the comparable quarter last year. Analysts expected the company to report revenue of $65.22 million.
Total operating expense for the quarter was $59.07 million, up from $41.11 million in the prior year quarter mainly driven by the increase in research and development expenses.
Onyx reported research and development expenses of $35.6 million, compared to $21.8 million in the same quarter last year primarily due to planned increases in the development program for Nexavar across additional tumor types, such as thyroid, colorectal and adjuvant liver cancer and costs to further develop ONX 0801, including a milestone payment of $7.0 million to BTG International Limited.
The company reported a decline in investment income of $1.0 million from $2.8 million in the prior year quarter due to lower effective interest rates as a result of market conditions as well as a change in the asset allocation of investment portfolio.
For the nine months, net income declined to $21.67 million or $0.37 per share from $32.13 million or $0.57 per share last year. Non GAAP net income was $45.64 million or $0.73 per share, compared with $45.94 million or $0.81 per share in the prior year. Year-to-date revenue went up to $183.07 million from $144.69 million last year.
ONXX last traded at $27.25, up $0.80 or 3.02% on a volume of 1.07 million shares on the Nasdaq.
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