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Allos shares fall on Folotyn sales results

Wed, 05/11/2011 - 11:17am
The Associated Press

Shares of Allos Therapeutics Inc. fell Wednesday after the company reported disappointing first-quarter sales results for its lymphoma drug Folotyn.

The stock dipped 34 cents, or 11.9 percent, to $2.51 in afternoon trading. Shares earlier reached $2.35, marking the lowest point in about five years.

On Tuesday, the company said it lost $15.2 million, or 14 cents per share, compared with a loss of $20.5 million, or 20 cents per share, during the same period a year prior. Revenue rose 47 percent to $10.9 million from $7.4 million.

Folotyn is the company's only marketed product.

Analysts surveyed by FactSet expected a loss of 15 cents per share on $12.2 million in revenue.

Looking ahead, the company said it expects sales between $48 million and $55 million in 2011. Analysts expect about $61.8 million in sales.

Meanwhile, the company signed a commercialization deal with Mundipharma for Folotyn. Under the deal, Mundipharma will have exclusive rights to the drug in all countries outside of the U.S. and Canada. Allos will receive an upfront payment of $50 million and potential regulatory and sales milestone payments of up to $310.5 million. Allos is also entitled to receive royalties based on sales.

Brean Murray, Carret & Co. analyst Brian Skorney reaffirmed a "Buy" rating, but reduced his price target to $6 from $9, saying the quarter "was a mixed bag" for the company.

While Folotyn sales were disappointing, he said, the company offset those results with a partnership deal that provides the company with an immediate cash infusion.

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