QLT Inc. QLTI reported a fourth-quarter 2014 loss of 24 cents per share (excluding a termination fee of $28.4 million received from Auxilium Pharmaceuticals, Inc.). Including the termination fee, the company reported earnings of 31 cents per share. The Zacks Consensus Estimate was at a loss of 9 cents and the year-ago loss was 10 cents per share. Overall, the stock has risen 1.01% to date.
QLT did not report any revenue during the fourth quarter of 2014, as was the case a year ago. We note that QLT’s product portfolio had earlier included eye-drug Visudyne. In Sep 2012, QLT sold its Visudyne business to Valeant Pharmaceuticals International, Inc. VRX.
Full year loss, including the termination fee, was 8 cents per share as compared to 51 cents a year ago. The Zacks Consensus Estimate was at a loss of 48 cents per share.
Research and development (R&D) expenses at QLT came in at $2.1 million in the fourth quarter of 2014, down 55.8% from the year-ago quarter. The decline in R&D expense was primarily due to higher costs incurred in 2013 related to certain toxicity studies and phase Ib retreatment study on QLT091001. Cost savings on workforce reduction and other restructuring activities at QLT undertaken in 2012 also led to the lower R&D.
On the other hand, selling, general and administrative expenses increased to $8.1 million in the reported quarter from $1.4 million a year ago. The increase was primarily due to consulting and transaction fees incurred in connection with the proposed merger with Auxilium Pharma. However, Auxilium Pharma terminated its merger deal with QLT.
QLT carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Cytokinetics, Inc CYTK and Alnylam Pharmaceuticals, Inc. ALNY. While Cytokinetics carries a Zacks Rank #1 (Strong Buy), Alnylam is a Zacks Rank #2 (Buy) stock.
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