Earnings Released: Royalty Revenue Revised Up from $55 Million to $63 milliong for 2013
Astex has revised its 2013 operational guidance for the following major items:
Royalty revenue has been revised from $55 million to $63 million for 2013. The increase in royalty revenue is primarily driven by the delayed entry of generic competition after the expiration of market exclusivity for Dacogen in the U.S. on May 2, 2013. A competitor announced the launch of generic decitabine in the U.S. on July 12, 2013.
Research and development expenses have been revised from $67 million to $70 million for 2013. The increase in research and development expenses is primarily influenced by the acceleration and/or revision of estimated costs associated with the Company's two priority programs SGI-110 and AT13387.
The net loss estimated for 2013 has been reduced from the previous guidance of $30 million to a revised $25 million. Included in total operating expenses reflected in the revised annual net loss are approximately $12 million of non-cash charges.
From my point of view, as a long, it is all about the calendar at this point.
We have a mature company and pipeline with lots of promise. While nothing can be taken for granted and made certain, the way forward looks very positive, much more risk on the short side; additional events like this one can and will come at any time. Let’s relax and enjoy the ride.