Abraxis Bioscience Inc. New (ABII) filed Quarterly Report for the period ended 2009-09-30.
Abraxis BioScience is a fully integrated biotechnology company dedicated to delivering progressive therapeutics and core technologies that offer patients and medical professionals safer and more effective treatments for cancer and other critical illnesses. The Abraxis portfolio includes the world's first and only protein-based nanoparticle chemotherapeutic compound which is based on its proprietary tumor targeting system known as the nab Technology platform. From the discovery and research phase to development and commercializationAbraxis BioScience is committed to rapidly enriching the company's pipeline and accelerating the delivery of breakthrough therapies that will transform the lives of the patients who need them. Abraxiswith headquarters in Los AngelesCaliforniatrades on the Nasdaq Global Market under the symbol `ABII.` Abraxis Bioscience Inc. New has a market cap of $1.38 billion; its shares were traded at around $34.43 with and P/S ratio of 4.
Highlight of Business Operations:
Net revenue for the three months ended September 30, 2009 increased by $3.2 million, or 3.5% to $96.6 million as compared to $93.4 million for the same period in 2008. Included in net revenue for the three months ended September 30, 2008 was $9.1 million of recognized deferred revenue related to the co-promotion agreement with AstraZeneca which ended in January 2009.
Abraxane revenue for the three months ended September 30, 2009 decreased $9.1 million to $82.9 million compared to $92.0 million for the same period in 2008. Excluding the recognition of deferred revenue associated with the co-promotion agreement, total Abraxane revenue for the three months ended September 30, 2009 decreased by $0.1 million, or 0.1%, to $82.9 million as compared to $83.0 million for the same period in the previous year.
Other revenue for the three months ended September 30, 2009 increased by $12.5 million or 931.0% to $13.8 million compared to $1.3 million for the same period in 2008 primarily due to sales of raw materials in 2009.
Gross profit for the three months ended September 30, 2009 was $76.9 million, or 79.6% of net revenue, as compared to $82.3 million, or 88.1% of net revenue, for the same period in 2008. Excluding recognized deferred revenue related to the co-promotion agreement, gross profit as a percentage of net revenue for the three months ended September 30, 2009 was 79.6% as compared to 86.8% for the same period in 2008. The decrease was primarily due to the elimination of the deferred revenue recognized from the co-promotion agreement, higher volume of sales of lower margin products, a voluntarily initiated recall of certain lots of Abraxane® and increased sales of Abraxane® outside of the United States.
Research and development expense for the three months ended September 30, 2009 increased $30.0 million, or 142.8%, to $51.0 million as compared to $21.0 million for the same period in 2008. The majority of the increase was due to additional spending on Phase III clinical trials for non-small cell lung cancer, pancreatic cancer and melanoma. The remainder of the increase was attributable to investments in early stage discovery and other research and development projects.
Selling, general and administrative expense for the three months ended September 30, 2009 increased $1.7 million to $58.0 million, or 60.0% of net revenue, from $56.3 million, or 60.3% of net revenue, for the same period in 2008. The reacquisition of Abraxane® marketing rights in the U.S. yielded savings due to the elimination of commission payments. These savings were offset by increased investment in the global expansion of Abraxane® primarily in China and the European Union, and increased spending on U.S. sales and marketing.
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