Guilford posts its 1st ever profit in 2nd quarter Company awaits FDA approval for drug

August 02, 1996|By Mark Guidera | Mark Guidera,SUN STAFF

Guilford Pharmaceuticals Inc., a Baltimore-based bio-pharmaceutical company developing ways to deliver chemotherapy and other drugs directly to tumor sites, reported its first quarterly profit yesterday.

The company, which is awaiting final Food and Drug Administration approval to begin marketing in the United States its first product, reported profit of $2.8 million on revenues of $7.5 million for the quarter ended June 30.

Shares in Guilford rose yesterday to $24, up $2.375.

The second-quarter results were sharply different from the same period last year when it posted a net loss of $2.9 million.

"This has been a very busy and productive quarter for Guilford Pharmaceuticals," said Dr. Craig Smith, Guilford's president and chief executive officer.

For the first six months of this year, Guilford posted a net loss of $1.7 million compared to a net loss of $5 million during the same period last year.

Virtually all of the company's revenue during the second quarter came from a cash payment from the U.S.-based drug company Rhone-Poulenc Rorer for the rights to market Guilford's Gliadel wafer, a treatment for brain cancer. Rhone bought up the marketing rights for everywhere but Scandinavia. The biggest markets for the treatment are considered by analysts to be the United States, Japan and Europe.

Guilford said that it received $15 million upon the June 13 signing of the Rhone-Poulenc agreement, of which $7.5 million was received as a rights payment.

The other $7.5 million came in the form of a stock purchase; Rhone-Poulenc bought approximately 188,000 shares of Guilford common stock at $40 per share.

The Baltimore company will also get royalties on sales of Gliadel, a biodegradable polymer wafer containing a chemotherapy drug. The company will manufacture and supply the wafer to Rhone-Poulenc.

An FDA advisory panel recommended that Gliadel be approved for use by surgeons to help prevent a recurrent form of brain cancer in patients undergoing surgery to remove tumors.

Pub Date: 8/02/96

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