ImClone Systems Inc., the company at the heart of the insider trading scandal that led to convictions of its founder and his friend Martha Stewart, finally posted a profitable quarter on Tuesday after bringing its cancer drug, Erbitux, to market.
Much of the profit was derived from license fees and milestone revenue ImClone receives from partners Merck KGaA of Germany and Bristol-Myers Squibb Co. for progress in developing and manufacturing the cancer treatment. ImClone recorded $67.5 million in such payments in the quarter.
The New York-based biotechnology company reported a net profit of $62.7 million, or 76 cents per share, compared with a loss of $34.8 million, or 47 cents a share, in the first quarter a year ago.
Analysts on average expected earnings of 17 cents per share, according to Reuters Research, a unit of Reuters Group Plc.
Total Erbitux sales recorded by Bristol-Myers in the quarter were $17.5 million. ImClone received a 39-percent royalty on those sales, or $6.8 million.