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UPDATE 3-Actelion key drug sales disappoint

Published 10/20/2009, 06:21 AM
Updated 10/20/2009, 06:27 AM
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* Q3 net profit 108 million Swiss francs, vs forecast 109 million

* Sales and earnings to be at top end of full-year guidance

* Shares fall 3 percent, hit by lower than expected drug sales

(Adds Q3 sales of Tracleer, analyst comment, updated shares)

By Sam Cage

ZURICH, Oct 20 (Reuters) - Sales of Actelion's most important drug disappointed in the third quarter, even as Europe's largest biotech met profit forecasts and was upbeat for the full year.

Sales of heart and lung drug Tracleer, which generates the vast majority of group revenues, rose 10 percent to 376 million Swiss francs ($372 million) in the quarter, Actelion said on Tuesday, but were just behind analyst forecasts.

"I think this (growth) cannot continue, in terms of Tracleer, at this pace forever," Chief Executive Jean-Paul Clozel told Reuters.

Actelion shares fell 3 percent to 61.30 francs by 1017 GMT, versus the DJ Stoxx European healthcare index which was down 0.5 percent.

The Basel-based group is trying to cut its dependence on Tracleer by developing the drug in other diseases and trying to push other promising medicines to market. Third-quarter profit was flat at 108 million francs, hurt by the weak dollar as the group generates nearly half its sales in the United States and a 10 million franc milestone payment to Bayer.

"The company's Q3 2009 results came in a tick below consensus on all metrics although it should be noted that market estimates varied over a broad range," said Olav Zilian, analyst at Swiss brokerage Helvea.

"We interpret the company's guidance for 2010 as showing some confidence that a significant portion of its late-stage clinical pipeline will progress, requiring a major investment in these projects," Zilian said.

PROMISING PIPELINE

Actelion confirmed its full-year forecast for both sales and cash earnings before interest and tax (EBIT) to rise 16-19 percent, and said it would very likely be towards the upper end of the ranges.

It should post "low double-digit growth" in sales for 2010, finance director Andrew Oakley told Reuters.

Investors are eagerly anticipating results from several important late-stage trials which Actelion is running, including imminent data on sleep drug almorexant -- partnered with British drugmaker GlaxoSmithKline and seen as a key driver.

Another important milestone for Actelion will be Phase III data on Tracleer in fatal lung disease idiopathic pulmonary fibrosis (IPF), an indication which the company believes could double the drug's current sales.

"On one side the business is doing well, on the other the pipeline is moving," Clozel said. "No bad news on the pipeline, and in this business that is good news." Actelion trades at nearly 18 times forecast 2010 earnings, just behind Belgian rival UCB but a premium to big drugmakers like Novartis and Roche thanks to a clutch of promising new medicines such as almorexant. (Additional reporting by Paul Arnold; Editing by Mike Nesbit and Jon Loades-Carter) ($1 = 1.010 Swiss francs)

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