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UPDATE 2-Crucell raises guidance, upbeat after Q2 profit

Published 08/17/2010, 05:07 AM
Updated 08/17/2010, 05:12 AM

* Net profit 9.2 million euros vs forecast 8.8 million

* Expects 2010 revenues, operating income to exceed 2009

* Will apply in 2014 to licence flu-vaccine programme

* share up 0.9 percent

(Adds details)

By Aaron Gray-Block

AMSTERDAM, Aug 17 (Reuters) - Dutch biotech group Crucell swung to a second-quarter net profit as it benefited from production problems at one of its key rivals, and it raised its full-year guidance on expected new orders for its vaccines.

Crucell was upbeat on prospects for its paediatric vaccine Quinvaxem after rival Sanofi-Aventis's (SASY.PA) Shantha Biotechnics was forced to recall its vaccines and lost in July a prequalification status to supply the World Health Organisation.

"The production of Quinvaxem is in order. The production was not in order at one of our competitors. We are positive for Quinvaxem for the coming year," Crucell Chief Executive Ronald Brus said in a conference call.

He added the company expects a new contract from UNICEF in the second half of the year and although there are strains on its production capacity, he did not expect problems with supply.

Crucell reported second-quarter net profit of 9.2 million euros, beating the average estimate of 8.8 million euros from a Reuters poll of four analysts. The company made a first-quarter net loss of 2.3 million euros.

The SmartEstimate for net profit based from StarMine, which rates analysts based on past accuracy and timeliness, was for 9.37 million euros.

Crucell said it expects total 2010 revenues and other operating income to exceed 2009, having previously guided for revenues and other operating income to be in line with 2009.

Although RBS analyst Mutlu Gundogan said Crucell's second-quarter revenue growth was good, he noted the raised outlook was expected and the gross margin "disappointed."

Crucell said its gross margin was 36 percent, down 39 percent last year, hit by foreign exchange movements.

Expenses also rose due to higher direct marketing and sales expenses, IT project expenses and one-time effects.

Shares in Crucell were up 0.9 percent at 15.87 euros at 0812 GMT, slightly outperforming a a positive Amsterdam midcap index . Crucell shares have risen 5.6 percent in the past month.

Johnson & Johnson bought a 17.96 percent stake in Crucell last year, giving the Leiden-based company a strong cash position and the ability to make acquisitions.

Crucell said it would aim to apply for licensing in 2014 of its cell-based influenza vaccine programme after reaching an agreement with French group Sanofi-Aventis for the return of full control over the development of the programme. (Reporting by Aaron Gray-Block, editing by Marcel Michelson and Louise Heavens)

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