PDL BioPharma expects lower revenue in 3Q
INCLINE VILLAGE, Nev. (AP) — PDL BioPharma Inc. said Thursday it expects its revenue to fall about 4 percent in the third quarter because of lower sales of the cancer drug Avastin, and a lower royalty rate on several drugs sold by Roche AG.
PDL said it expects about $83 million in revenue in the third quarter, down from $86.4 million in the third quarter of 2010. Analysts are forecasting revenue of $86.4 million on average.
Most of PDL's revenue comes from sales of mainly on royalties from the cancer drugs Avastin and Herceptin, the macular degeneration drug Lucentis, asthma treatment Xolair, and Tysabri for multiple sclerosis and Crohn's disease. The first four drugs are sold by Roche's Genentech unit. Avastin is approved to treat several types of cancer, but the Food and Drug Administration is in the process of trying to remove its approval in breast cancer because follow-up studies showed it did not extend the lives of patients.
PDL said Avastin revenue decreased, and it is getting lower revenue from Roche products in the U.S. it said revenue from Herceptin, Lucentis, and Tysabri increased. Tysabri is marketed by Elan Corp. The third-quarter payments to PDL are based on second-quarter sales.
Shares of PDL BioPharma declined 10 cents to $5.69 in afternoon trading.