Drug developer Pharmacyclics posted its quarterly results for the quarter ended December 2012. The company’s results caused cheer among the investors as the stock rallied on news of good results. Pharmacyclics said it earned $56.3 million, or 78 cents per share, over the three months ended Dec. 31. Excluding certain items it earned 82 cents per share. A year earlier it took a loss of $7.5 million, or 13 cents per share. Revenue surged to $77.9 million from $2.8 million on higher license and milestone revenue. The results were above the analysts expectations.
Pharmacyclics® is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative small-molecule drugs for the treatment of cancer and immune mediated diseases. The company designs, develops and commercializes novel therapies intended to improve quality of life, increase duration of life and resolve serious unmet medial healthcare needs; and to identify promising product candidates based on scientific development expertise, develop our products in a rapid, cost-efficient manner and pursue commercialization and/or development partners when and where appropriate.
The company also stated that it will enter into an agreement with Jansen Biotech to develop treatment for diseases such as lymphoma and leukemia. The company is receiving a payment of $150 million and if the development of the medicines is successful then the company is entitled to almost $ 1 billion.
The new agreement with Jansen could be crucial for the company over the long run. If the company is successful in getting the medicines then the stock could spiral from the current levels. The company is also expected to release medicines under its own patents which could also significantly drive the revenues of the company. We maintain a buy on the counter at current price levels.