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Get it while you can. Genentech will be discontinuing production of Nutropin Depot.
Posted by Miracle Man:
Genentech, Alkermes Discontinue Nutropin Depot
Tuesday June 1, 6:41 PM EDT
SOUTH SAN FRANCISCO, Calif. (Dow Jones)--Genentech Inc. (DNA) and Alkermes Inc. (ALKS) decided to discontinue the sale of Nutropin Depot, a treatment for growth hormone deficiency in children, citing the significant resources needed to make and market the product.
As a result, Alkermes lowered its fiscal 2005 revenue guidance, but backed its its prior earnings guidance, excluding restructuring charges.
Alkermes performs the manufacturing operations that converts Genentech's bulk product somatropin into the long-acting dosage form of Nutropin Depot, which uses Alkermes' ProLease injectable extended-release drug delivery system, the companies said in joint release Tuesday.
The companies said patients who require growth hormone therapy will be provided with other options in the Nutropin line.
"We will collaborate with physicians and the endocrine community over the next several weeks to ensure existing Nutropin Depot patients are informed and transitioned appropriately," said Susan Hellmann, president of product development at Genentech.
Alkermes lowered its fiscal 2005 revenue estimate to between $90 million and $ 120 million from its previous forecast of $95 million to $125 million.
The company currently expects restructuring charges from the discontinuation of Nutropin Depot to range from $15 million to $20 million, which will be recorded in the first quarter ended June 30.
Excluding the restructuring charges, Alkermes expects a fiscal 2005 loss of $ 35 million to $45 million, or 39 cents and 50 cents a share. The forecast brackets the analysts' estimate, on average, for a loss of 49 cents a share, and is in line with its previous guidance.
Including the charges, the company expects a loss of $55 million to $60 million, or 61 cents to 67 cents a share, for the year ending March 31.
Alkermes lowered its full-year guidance for manufacturing and royalty revenue to $45 million to $55 million, down from its earlier projection of $50 million to $60 million.
Specifically, manufacturing revenue is expected to range from $38 million to $ 46 million, down from the prior outlook of $42 million to $50 million. Royalty revenue is projected at $7 million to $9 million, down from the $8 million to $ 10 million previously expected.
The research and development revenue outlook remains unchanged at $45 million to $65 million.
On costs, Alkermes expects cost of goods manufactured to fall to $19 million to $23 million from its earlier forecast of $23 million to $27 million.
Research and development expenses are expected to range from $84 million to $ 94 million, slightly lower than previous expectations of $85 million to $95 million.
-Judy Lam; Dow Jones Newswires; 201-938-5400
Get it while you can. Genentech will be discontinuing production of Nutropin Depot.
Posted by Miracle Man:
Genentech, Alkermes Discontinue Nutropin Depot
Tuesday June 1, 6:41 PM EDT
SOUTH SAN FRANCISCO, Calif. (Dow Jones)--Genentech Inc. (DNA) and Alkermes Inc. (ALKS) decided to discontinue the sale of Nutropin Depot, a treatment for growth hormone deficiency in children, citing the significant resources needed to make and market the product.
As a result, Alkermes lowered its fiscal 2005 revenue guidance, but backed its its prior earnings guidance, excluding restructuring charges.
Alkermes performs the manufacturing operations that converts Genentech's bulk product somatropin into the long-acting dosage form of Nutropin Depot, which uses Alkermes' ProLease injectable extended-release drug delivery system, the companies said in joint release Tuesday.
The companies said patients who require growth hormone therapy will be provided with other options in the Nutropin line.
"We will collaborate with physicians and the endocrine community over the next several weeks to ensure existing Nutropin Depot patients are informed and transitioned appropriately," said Susan Hellmann, president of product development at Genentech.
Alkermes lowered its fiscal 2005 revenue estimate to between $90 million and $ 120 million from its previous forecast of $95 million to $125 million.
The company currently expects restructuring charges from the discontinuation of Nutropin Depot to range from $15 million to $20 million, which will be recorded in the first quarter ended June 30.
Excluding the restructuring charges, Alkermes expects a fiscal 2005 loss of $ 35 million to $45 million, or 39 cents and 50 cents a share. The forecast brackets the analysts' estimate, on average, for a loss of 49 cents a share, and is in line with its previous guidance.
Including the charges, the company expects a loss of $55 million to $60 million, or 61 cents to 67 cents a share, for the year ending March 31.
Alkermes lowered its full-year guidance for manufacturing and royalty revenue to $45 million to $55 million, down from its earlier projection of $50 million to $60 million.
Specifically, manufacturing revenue is expected to range from $38 million to $ 46 million, down from the prior outlook of $42 million to $50 million. Royalty revenue is projected at $7 million to $9 million, down from the $8 million to $ 10 million previously expected.
The research and development revenue outlook remains unchanged at $45 million to $65 million.
On costs, Alkermes expects cost of goods manufactured to fall to $19 million to $23 million from its earlier forecast of $23 million to $27 million.
Research and development expenses are expected to range from $84 million to $ 94 million, slightly lower than previous expectations of $85 million to $95 million.
-Judy Lam; Dow Jones Newswires; 201-938-5400
