Medivation Results Surpass Estimate On Xtandi Sales; Lifts Guidance; Stock Up 4%

(RTTNews) - Biotechnology company Medivation Inc (MDVN) Thursday reported second-quarter net earnings of $47.9 million or $0.60 per share, helped mainly from strong collaboration revenue related to prostrate cancer drug Xtandi. This compares with a loss of $4.9 million or $0.07 per share last year.

Collaboration revenue for the quarter was $148 million, compared with $70 million in the prior year.

Analysts polled by Thomson Reuters projected earnings of $0.24 per share on revenue of $125.6 million for the quarter. Analysts' estimates typically exclude special items.

"We are very pleased with our second quarter results and the continued strong commercial performance of Xtandi," said CEO David Hung.

For fiscal year 2014, San Francisco-based Medivation now expects U.S. net sales of Xtandi to be between $600 million and $640 million, up from prior guidance of $540 million to $575 million. U.S. net sales of Xtandi are reported by Astellas Pharma Inc.

Medivation expects its collaboration revenue for 2014 in the range of $615 million to $640 million, which includes collaboration revenue related to U.S. net sales between $300 million and $320 million.

Analysts project Medivation to report revenue of $561.7 million for the year.

Medivation stock closed Thursday at $75.27, down $1.24 or 1.62%, on a volume of 617k shares. In after hours, the stock gained $3.28 or 4.36% at $78.55.