QLT Inc. QLTI reported a second-quarter 2015 loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents and the year-ago loss of 17 cents.
QLT did not report any revenue during the second 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 $3.4 million in the second quarter of 2015, down 17% 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 76% to $7.2 million in the reported quarter. The increase was primarily due to consulting and advisory 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 second quarter of 2015. 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. In Jun 2015, QLT announced that it has entered into a definitive agreement to acquire InSite Vision Incorporated. The InSite acquisition will add AzaSite, a prepared NDA filing for BromSite for post-cataract surgery, a phase III trial-ready candidate and a second phase III trial-ready candidate, dexasite for blepharitis to QLT’s pipeline.
QLT carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector are Ligand Pharmaceuticals Incorporated LGND and Anacor Pharmaceuticals, Inc. ANAC. While Ligand carries a Zacks Rank #1 (Strong Buy), Anacor holds a Zacks Rank #2 (Buy).
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