NEW YORK (AP) -- Shares of Santarus Inc. jumped Tuesday after the biopharmaceutical company posted strong first-quarter results and raised its forecast for the full year.
THE SPARK: Santarus reported its quarterly results after the market closed on Monday. Its net income surged to $18.7 million, or 25 cents per share, and revenue climbed 73 percent to $79.4 million
Analysts, on average, expected net income of 14 cents per share and $74.7 million in revenue, according to FactSet.
Santarus reported $6.6 million in revenue from its newest drug, Uceris, which reached in the market in February. It said revenue from its acid reflux drug Zegerid nearly tripled to $24.6 million, and sales of its diabetes drug Glumetza rose 33 percent to $41.5 million.
THE BIG PICTURE: The Food and Drug Administration approved Uceris in January. The drug is intended to put the symptoms of ulcerative colitis, an inflammatory bowel disease, into remission.
Santarus stopped promoting Zegerid for a time because of a dispute over the patents supporting the drug. The patent decisions allowed other companies to sell generic versions of the drug. However the San Diego company received a favorable court decision on some of those patents in 2012 and it started promoting the drug again in February.
Santarus now expects adjusted net income of $1.03 to $1.15 per share on $330 million to $340 million in revenue for the year. Previously Santarus had forecast net income of 92 cents to $1 per share and $320 million to $325 million in revenue.
Analysts were projecting net income of 76 cents per share $339.3 million in revenue on average.
THE ANALYSIS: "Uceris is off to a fast start," said Stifel Nicolaus analyst Annabel Samimy. She expects Santarus to report about $50 million in Uceris revenue in 2013 and peak sales of about $300 million a year.
Samimy maintained a "Buy" rating on Santarus and raised her price target to $22 per share from $20.
SHARE ACTION: Santarus shares gained $2.10, or 11.1 percent, to $20.97 in afternoon trading. The stock is up 71.9 percent in 2013 and is trading around all-time highs. Shares peaked at $21.81 on Tuesday.