Santarus Q2 Profit, Revenue Surges; Stock Rises - Update

(RTTNews) - Biotechnology firm Santarus, Inc. (SNTS) Tuesday reported a surge in second-quarter profit, aided by an income tax benefit. Based on the quarterly performance, the firm lifted its earnings outlook for 2013. The stock climbed more than 8 percent in the extended trade.

Gerald Proehl, CEO of Santarus, said, ''Our commercial efforts continue to drive strong financial performance with encouraging market uptake for UCERIS and significant contributions from GLUMETZA and ZEGERID. Based on our robust second quarter performance, we are raising our financial outlook for 2013."

Net income surged to $73.53 million or $0.94 per share from $3.44 million or $0.05 per share in the same period last year.

The latest results included a $5.0 million expense for a success-based regulatory milestone, and a one-time income tax benefit of $54.9 million or $0.70 per share, resulting from the release of the company's valuation allowance for deferred tax assets.

Adjusted earnings totaled $0.31 per share, while it amounted to $0.10 per share last year. On average, four analysts polled by Thomson Reuters expected the company to earn $0.18 per share. Analysts' estimates typically exclude special items.

Revenues jumped 89 percent to $89.36 million from $47.19 million last year. Analysts expected revenues of $82.90 million.

The company reported revenue increases from GLUMETZA and ZEGERID while UCERIS contributed $16.2 million.

Looking ahead to fiscal 2013, the company has raised its earnings outlook to a range of $1.61 to $1.65 per share from the prior projection of $0.72 to $0.81 per share. Adjusted earnings are currently projected in a range of $1.21 to $1.26 per share, up from the previous outlook range of $1.03 to $1.15 per share.

Further, the firm narrowed its revenue outlook to a range of $355 million to $360 million from $330 million to $340 million issued previously. Analysts currently expect the company to report full-year earnings of $0.85 per share on revenues of $345.70 million.

SNTS closed down 1.4 percent on Tuesday at $24.87 and added 8.6 percent in the extended trade.