For its impressive second quarter, the drugmaker reported diluted earnings per share from continuing operations of $0.48, compared with a loss in the year-ago quarter. It's also a 45.5% increase over the company's Q1 earnings. Sales continue to flourish: Total revenues increased by 42% when compared with the company's 2006 second quarter.
It's apparent that the good news this quarter results from continued strong gains for the company's anti-cancer drug Tarceva, which it co-promotes with Genentech
The international market has been a particular growth area for Tarceva. Royalty revenues from Roche are based on the international sales of Tarceva, they've climbed 107% versus the year-ago quarter. This segment of revenues now accounts for 28.6% of the company's total revenues, versus only 19.6% in last year's Q2.
The stock got a boost out of the report. That was good for shareholders, who are looking to shake off the hangover effect from the company's decision to discontinue its eye-disease business, which consists primarily of a product that it has marketed with Pfizer
Once Tarceva becomes obsolete around 2009, this stock is junk. Bad management. Poor upside.
That seems like a harsh assessment of the stock, given OSI's current results, but only time will tell whether the bears emerge victorious.