Nabi reports 4Q profit on drug sale
Drug developer Nabi Biopharmaceuticals reported a fourth-quarter profit on Wednesday on gains from the sale of its staph infection vaccine PentaStaph to British drugmaker GlaxoSmithKline PLC.
The company earned $1.1 million, or 2 cents per share, after a loss of $4.7 million or 9 cents per share, during the same period a year prior. Revenue reached $10.5 million, compared with no revenue a year prior.
In August, Nabi sold PentaStaph GlaxoSmithKline in a deal worth as much as $46 million. At the time it received $20 million upfront with the rest of the payments following based on milestones.
Staph infections are caused by a drug-resistant strain of bacteria often found in hospitals.
For the full year, the company lost $18.7 million, or 37 cents per share, compared with a loss of $18.7 million, or 36 cents per share, in 2008. Revenue reached $10.5 million, compared with no revenue in 2008.
Meanwhile, the company closed an option and license agreement for the smoking vaccine candidate NicVAx with GlaxoSmithKline on Monday. That deal is potentially worth more than $500 million, including a $40 million upfront payment to Nabi and future milestone and royalty payments.
NicVAx is intended to train the immune system to make antibodies that will attach themselves to nicotine. The goal is to keep the nicotine molecules from reaching the brain so people can quit smoking and not start again.
Shares of Nabi rose 14 cents, or 2.5 percent, to close at $5.70. The stock reached a 52-week high of $5.79 during the session.