Guilford nets $6.3 million in quarter 3a share made possible by $15 million from Amgen

November 06, 1997|By Mark Guidera | Mark Guidera,SUN STAFF

Guilford Pharmaceuticals Inc., one of the region's most promising biotechnology companies, reported a profit of $6.3 million for the third quarter ended Sept. 30, compared with a profit of $13.2 million for the corresponding quarter in 1996.

Revenue for the third quarter was $16.6 million, compared with revenue of $20 million in the year-earlier period, the Baltimore-based and publicly held company said.

Guilford said this year's third-quarter profit was largely attributable to a one-time $15 million payment from Amgen Inc.

In August, the California-based biotechnology company licensed the rights to co-develop and market Guilford's group of drug compounds which have shown promise in treating Parkinson's disease and other neuro-degenerative diseases.

Under the deal, Amgen also bought $20 million worth of stock and warrants in Guilford.

It would pay Guilford royalties on any drugs approved for marketing.

Guilford's third-quarter profit was attributable to a one-time $20 million milestone payment from Rhone-Poulenc Rorer for FDA marketing clearance of Gliadel, a chemotherapy loaded wafer implant used for treating brain cancer following surgery.

Dr. Craig R. Smith, president and chief executive officer of Guilford, said the company received $1.5 million in revenue from Rhone-Poulenc Rorer as a result of Gliadel sales and royalties in the third quarter.

Looking ahead, Craig said the company anticipates similar revenue from Gliadel sales and royalties in the fourth quarter.

For the nine months ended Sept. 30, Guilford said it posted a loss of $5.3 million compared with a profit of $11.4 million in corresponding period last year.

Revenue for the third quarter was $21.3 million, compared with $27.6 million in the 1996 period, Guilford reported.

The third-quarter earnings amounted to 32 cents a share, compared with 86 cents a share in the 1996 quarter. For the nine-month period, Guilford said, it lost 31 cents a share, compared with a profit of 81 cents a share in the 1996 period.

Pub Date: 11/06/97

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