Justice Sirikah

Crucell N.V (PinkSheets: CRXLF) Reiterates Full Year Projection In Spite of Q3 Earnings Dip

by Justice Sirikah November 4, 2009
crxlf_logo.jpgStock price of Biopharmaceutical concern, Crucell N.V (PinkSheets: CRXLF) remained unmoved on the U.S market on Tuesday on account of the affirmed 20 percent growth in total full-year 2009 revenue and other operating income guidance even as the company reported a third quarter earnings decline. Better yet, the Netherlands-based company whose flu vaccine advancement programme was bankrolled to the tune of $445.4 million by Johnson & Johnson (NYSE: JNJ) in September, also announced its collaboration with privately owned Calmune Corp. to develop and market vaccines and antibodies for infectious diseases.

  Net income for the third quarter to September contracted 22 percent to $14.77 million ($0.22 per share), on tremors of gross margins which retreated to 39 percent in the period versus 50 percent of the prior year period. Quarterly profit for the July – September period of 2008 had arrived at $18.84 million ($0.28 per share). According to Crucell, the blame for the profit decline rests primarily on ill-timed development milestone payments by the company’s partners and the adverse conversion of the U.S Dollar and the Euro. On average Wall Street had predicted a profit of $17.7 million for the quarter under review.

  The company posted overall revenues of $139 million during the quarter, reflecting a growth of 15 percent from a total of $121 million that was booked in the corresponding period last year. Sales in the most recent period were largely defined by the increased demand of Crucell’s paediatric and respiratory vaccines. Crucell also commended its travel and endemic vaccines for having anchoring the sales growth along with the aforementioned vaccines over the three months, albeit the effects of subdued travel due to the global recession.

  Shares of Crucell ended Tuesday’s trading session trading at $21.10, the same price as the previous. The company’s stock has been struggling to make a comeback since the announcement of a deal with Johnson & Johnson in September.

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