Idenix Pharmaceuticals 3rd-quarter loss narrows

NEW YORK - Shares of Idenix Pharmaceuticals Inc. surged Friday as the biopharmaceutical company reported a narrower third-quarter loss after cutting expenses by more than half.

Late Thursday the Cambridge, Mass., company reported a loss of $16.9 million, or 30 cents per share, compared with a loss of $30.5 million, or 54 cents per share, during the same period a year prior. Revenue, though, plunged to $2.1 million from $10.9 million.

Analysts polled by Thomson Reuters expected a wider loss of 34 cents per share on revenue of $1.7 million.

"As we advance our hepatitis C and HIV discovery and development programs, we remain excited about the opportunities ahead for Idenix," said Chairman and Chief Executive Jean-Pierre Sommadossi, in a statement.

The drop in revenue came from lower reimbursements through a partnership with Novartis Pharma AG. The Swiss pharmaceutical company has worldwide commercialization rights to the companies' hepatitis B treatment Tyzeka.

Meanwhile, operating expenses plunged to $19.8 million from $43.5 million.

Idenix expects to end 2008 with between $45 million and $50 million in cash, cash equivalents and marketable securities. Its cash at Sept. 30 stood at $60.1 million.

Goldman Sachs analyst May-Kin Ho reaffirmed a "Neutral" rating on the stock and expects the company to continue making progress on its development programs. She expects the company to establish a partnership for the developing HIV drug IDX899, which would help raise more cash.

Meanwhile, Oppenheimer & Co. analyst Brian Abrahams reaffirmed a "Perform" rating, and said a collaboration is likely imminent.

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