R&D costs push up ALK Abello's Q2 FY07 pre-tax losses

Danish pharmaceutical company ALK Abello has posted a Q2 FY07 pre-tax loss of DKK 29m (USD 5.3m), an increase on a Q2 FY06 loss of DMK 24m, due to increased costs for R&D and sales and marketing.

SME Direkt analysts had expected a pre-tax loss of DKK 15m (USD 2.7m).

Sales increased 11 per cent to reach DKK 373m (USD 67.5m), down slightly on market expectations of DMK 377m (USD 68.3m).

The group posted an operating loss of DKK 35m (USD 6.3m), compared with DKK 31m in Q2 FY06 and was below expectations for a DMK 24m (USD 4.4m) loss.

ALK Abello reiterated its previous FY07 sales guidance of approximately DKK 1.7bn (USD 307.8m) and a pre-tax profit of DKK 230 to DKK 250m (USD 41.7m to USD 45.3m).

The company said the launch of its tablet-based grass pollen allergy vaccine Grazax was progressing according to plan. Sales of the drug amounted to DKK 19m (USD 3.4m) in H1 FY07.

ALK Abello said its year-on-year increase in costs for sales, marketing and administration was related to Grazax, while continuing development of the vaccine also augmented R&D costs.

Sales growth in the period was helped by an active allergy season, according to the firm.