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Tax benefit, higher sales lift Santarus 2Q profit

NEW YORK (AP) -- Drugmaker Santarus Inc. said Tuesday its net income jumped in the second quarter on improved product sales and a large tax benefit.

Santarus recorded an income tax benefit of $54.9 million during the quarter. The company said sales of its diabetes drug Glumetza climbed. Revenue from its acid reflux treatment Zegerid also improved, and the company started selling an ulcerative colitis drug called Uceris earlier this year.

Santarus raised its net income and revenue forecasts for the full year, and its shares advanced $1.73, or 7 percent, to $26.60 in after-hours trading.

The company's net income rose to $73.5 million, or 94 cents per share, from $3.4 million, or 5 cents per share. Excluding one-time charges, Santarus said its income totaled 31 cents per share in the latest quarter.

Revenue jumped 89 percent, to $89.4 million from $47.2 million.

Analysts projected income of 16 cents per share and $82.9 million in revenue, according to FactSet.

Santarus said Glumetza revenue grew 39 percent to $44.4 million while Zegerid sales more than doubled to $21.6 million. Santarus stopped promoting Zegerid during a dispute over the patents protecting the drug. It received favorable court rulings in 2012 and resumed promotion in February.

Santarus reported $16.2 million in sales of Uceris, which received Food and Drug Administration approval in January. The drug is intended to put into remission the symptoms of ulcerative colitis, an inflammatory bowel disease.

Excluding special items, Santarus now expects to report income of $1.21 to $1.26 per share in 2013 on revenue of $355 million to $360 million. Its prior guidance called for income of $1.03 to $1.15 per share and $330 million to $340 million in revenue.

Analysts expect annual revenue of $345.7 million, on average.

In June the Food and Drug Administration started reviewing an application for Ruconest, a treatment Santarus and Pharming Group are developing as a treatment for acute attacks of hereditary angioedema. Hereditary angioedema is a rare genetic disorder that can cause dangerous swelling of the throat or larynx. The companies expect the FDA to make a decision on Ruconest by April 16, 2014.

Shares of Santarus fell 36 cents to $24.87 during regular trading Tuesday.