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Biotech / Medical : Millennium Pharmaceuticals, Inc. (MLNM) -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (1468)	4/15/2003 8:24:41 PM
From: SemiBull	Read Replies (1) \| Respond to of 3044

Millennium Pharm CFO:Street Expected Velcade Deal Sooner Tuesday April 15, 6:00 pm ET By Tiffany Kary, Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Millennium Pharmaceuticals Inc. Chief Financial Officer Ken Bate said the company's first-quarter loss was deeper than Wall Street's estimates because analysts expected an earlier agreement to market one of its drugs. "Financial and operating results were in line with our estimates. Wall Street's expectations were different because of the timing of a Velcade partnership," said Bate, speaking shortly after the company's earnings release Tuesday. "We expected it in the second quarter, analysts expected it in the first quarter." Millennium doesn't give guidance, and Bate didn't comment on the fiscal year or upcoming quarters. The company reported a first-quarter loss of $137.9 million, or 47 cents a share, including a $28.2 million charge for the write-down of certain intangible assets and facilities and personnel costs associated with the discontinuation of discovery efforts. That compares with a year-ago loss of $303.9 million, or $1.20 a share. Those figures include a $242 million in-process research and development charge related to the acquisition of COR Therapeutics Inc. (NasdaqNM:MLNM - News) in February 2002. Millennium reported a pro forma loss of 34 cents a share Tuesday, missing Thomson First Call's (News - Websites) consensus estimate by 4 cents a share. Revenue for the quarter ended March 31 was $81.7 million, compared with $68.6 million for the same period in 2002. Millennium said the shortfall was also due to increases in research-and- development spending, decreased investment income and declining collaborative revenue. Analysts have been wary about the company's high R&D expenses in the past, noting they are the third highest in the biotech industry. Millennium poured $ 126.8 million into R&D in the quarter, up from $101.3 million for the same period in 2002. Bate said that is a good thing for a company with promising drugs in its pipeline. Decreased investment income resulted from lower interest rates this year, and the declining collaborative revenue comes from the expiration of deals with large pharmaceutical companies that date back to 1996. Bate said a partnership with Monsanto Co. (NYSE:MON - News) ended. Bate addressed Millennium's other contentious issues: its high cash burn rate, a possible debt refinancing and an agreement with Bayer AG which is supposed to expire in September. The company had $1.7 billion in cash on hand as of March 31, and Bate said the company's net operating loss is expected to be about $200 million next year, as previously announced. Millennium announced Tuesday it may change the terms of its $600 in convertible debt. It is considering amending the terms of some or all of its notes, and will make a public decision by April 22 if it decides to do so. On its relationship with Bayer, Bate said the agreement is set to expire late this year, but wouldn't confirm a September date which has been suggested by analysts. Morgan Stanley analyst Steve Harr previously said the expiration of that deal was a concern, as it accounts for around 22% of 2003 revenue. -By Tiffany Kary, Dow Jones Newswires; 201-938-5285; Tiffany.Kary@dowjones.com