QLT Inc. QLTI reported a first-quarter 2015 loss of 12 cents per share, wider than the Zacks Consensus Estimate of a loss of 6 cents and in line with the year-ago loss.
QLT did not report any revenue during the first quarter of 2015, 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.
Research and development (R&D) expenses at QLT came in at $2.2 million in the first quarter of 2015, down 54.1% from the year-ago quarter. The decline in R&D expense was primarily due to higher costs incurred in 2014 related to certain toxicity studies and a phase Ib retreatment study on QLT091001.
On the other hand, selling, general and administrative expenses increased 67.9% to $3.6 million in the reported quarter. The increase was primarily due to consulting and transaction fees incurred in connection with the company's exploration and review of strategic alternatives.
Our Take
The company reported a wider-than-expected loss in the first quarter of 2015. However, we are pleased with the company’s effort to advance its sole pipeline candidate, QLT091001. The company is planning to submit regulatory application for the same in 2016.
We note that the company has been evaluating several strategic options including divestiture, collaboration agreements, merger and acquisitions, post termination of its merger agreement with Auxilium Pharma in Oct 2014.
QLT carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector are Biogen Inc. BIIB and Horizon Pharma HZNP. Both stocks carry a Zacks Rank #1 (Strong Buy).
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