Nothing cures investor worries about a company more than a good earnings report. Biopharmaceutical company ImCloneSystems
Total revenues were up 42% to $151 million, and earnings were at $57 million ($0.65 a share), up 85% over the third quarter of last year. For the first nine months of the year, earnings have been a staggering $3.58 per share, but a large chunk of that does include milestone payments from Bristol-Myers Squibb
|
Quarter |
Royalty Revenue* |
Y-O-Y Growth |
|---|---|---|
|
Q3 06 |
$79 |
69% |
|
Q2 06 |
$75 |
79% |
|
Q1 06 |
$60 |
66% |
|
Q4 05 |
$53 |
44% |
Cash and marketable securities were relatively flat compared to last quarter, at $990 million. This metric is important to watch, because outspoken investor Carl Icahn will probably use this money in something like a Dutch auction to reward himself and short-term shareholders.
Icahn has finally managed to wrest control of the board of directors away from his opposition; today he was elected as chairman of the board. Icahn's remaining detractors on the board will not run for reelection next quarter, giving Icahn near-complete control of the company. Because of Icahn's election as chairman, ImClone's interim CEO resigned today. The company will now be run by a puppet "executive committee" consisting of Icahn's associates, but really controlled by Icahn himself.
For long-term shareholders of ImClone stock, it will be hard to bask in the glory of ImClone's positive earnings for long. Numerous looming issues surround the company, including the Yeda patent dispute, coming competition from Amgen's
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Fool contributor Brian Lawler does not own shares of any company mentioned in this article. The Fool has a disclosure policy .
