fyi, the San Diego Union Tribune article ...
Agouron says sales of AIDS drug Viracept grow, reports a profit
By Thomas Kupper
STAFF WRITER
January 13, 1998
Agouron Pharmaceuticals said yesterday that sales of its AIDS drug
Viracept continue to grow, and the San Diego company reported its most
profitable quarter yet.
It was a continuation of one of San Diego's first biotech success
stories, which started last March when Viracept became the first local
drug to win government approval.
In Agouron's second quarter, through Dec. 31, sales of Viracept reached
$91.8 million, a 12 percent jump from the previous quarter. The drug
became the top protease inhibitor as measured in revenue.
Analysts continue to revise their expectations of the drug upward, and
Agouron said Viracept sales in the United States should hit $350 million
for the fiscal year.
"They certainly can keep it up," analyst Elise Wang of PaineWebber in
New York said. "There's no doubt in my mind."
Agouron reported quarterly net income of $4.9 million, or 15 cents a
share, on total sales of $104.7 million including research contracts. A
year ago, when Agouron had no products on the market, there was a $13.9
million loss.
Agouron shares closed yesterday at $30.25, down $1.93-3/4, before the
announcement.
The largest share of AIDS patients on protease inhibitors continue to
use Crixivan, from drug giant Merck & Co. that has about 40 percent of
the market, compared with Agouron's 30 percent.
But Wang said that in terms of revenue, Agouron has about 36 percent of
the market, because Viracept is more expensive than Crixivan. Agouron
hopes to eventually overtake Merck in the number of patients.
The drugs are one component of the powerful AIDS cocktails that have
dramatically improved the outlook for AIDS patients.
Despite the strong sales of Viracept, however, Agouron shares remain 45
percent below a September high. The company last month pulled the plug
on its second drug project, the cancer treatment Thymitaq.
Analyst Charles Engleberg of AmeriCal Securities in San Francisco said
that in the absence of new Agouron drugs -- which wouldn't come for
several years -- or dramatic growth in Viracept sales, there isn't much
to drive the stock up.
"The question is where are we going to get the upside surprises,"
Engleberg said. "On the other hand, we could see potential downside
disappointment, just because there are new competitors coming into the
market."
Those competitors include a new protease inhibitor from
Massachusetts-based Vertex Pharmaceuticals that could hit the market
this year as well as new variations on current drugs.
Additionally, some studies have suggested that patients eventually
develop resistances to the protease inhibitors.
Wang said analysts are looking to presentations at upcoming medical
conferences, including one next month, to get a better idea of how
effective the Vertex drug is.
But she said Agouron could also have new data to strengthen its
position, including studies of Viracept in combination with other
protease inhibitors and in twice-a-day regimens, instead of the usual
three doses. |
