OSI Pharmaceuticals
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
While OSI's Q2 was very promising, not everybody in our Motley Fool CAPS community is sold. Among the skeptics is CAPS player esebeus, whose leading bear pitch states:
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.
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Fool contributor Billy Fisher does not own shares of any of the companies mentioned. The Fool maintains a healthy disclosure policy.