Abraxis Sees Loss on Litigation Costs

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Though sales of its flagship cancer drug grew in the quarter, Abraxis BioScience Inc. reported Friday a loss in its third quarter, primarily due to litigation and impairment charges.

The Los Angeles biotech reported a net loss of $15.1 million (38 cents per share), compared with a net loss of $16.8 million (42 cents) a year ago. Revenue grew 6 percent to $93.4 million, nearly all of it from sales of Abraxane.

Without the charges, the company would have reported per share net earnings of 21 cents compared with adjusted loss of 20 cents a year ago. The company in the quarter settled with disgruntled shareholders over the spin-off and sale of its Illinois-based injectible generic drug business.

“We continue to deliver strong sales of Abraxane,” said Chief Executive Patrick Soon-Shiong in a statement, noting that the company is pursuing use for the drug beyond its approved breast cancer use, and has several other drugs in its pipeline.

Abraxis shares were down $1.15, or 2 percent, to $59.85 in morning trading on the Nasdaq.

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