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ImClone Swings into Loss on Expenses, Tax

ImClone Systems on Thursday posted a third-quarter loss compared with a profit a year before because of expenses related to a legal settlement.

The New York-based biotechnology company posted a net loss of $900,000, or 1 cent a share, compared with a profit of $57.3 million, or 65 cents a share, a year earlier.

The company's results included a $50 million expense from the settlement of litigation with Repligen and the Massachusetts Institute of Technology.

Analysts on average had expected earnings of 28 cents a share, according to Reuters Estimates.

U.S. sales of cancer drug Erbitux were $184.5 million compared with $174.6 million a year before. Of the $184.5 million, $9 million was attributable to a distribution model change that resulted in wholesaler inventory build-up.

"The Erbitux numbers are the only ones we really care about," said Eric Schmidt, an analyst at Cowen & Co. "Stripping out the $9 million in inventory buildup, they came in a smidgen below expectations."

ImClone markets the drug with drugmaker Bristol-Myers Squibb and receives 39 percent of U.S. sales.

Total revenue was $147.5 million, down from $150.7 million a year before.