CAT posts £4.6m profit
Cambridge Antibody Technology’s star remains in the ascendancy. CAT has posted a profit after tax for the six months ended March 31 of £4.6 million compared to a loss of £16.5m this time last year.
A massive revenue surge produced a scintillating turnaround. Interim revenue was £27.7m (2005: £9.8m) plus the $255 million (£144.7 million) received from Abbott last October and paid out immediately to CAT's licensors as part of the litigation settlement with Abbott in respect of arthritis drug HUMIRA.
The remaining royalty income consists of royalties received on sales of HUMIRA for the three months to December 31 (£6.9m) and accrued royalties for the three months to March 31 (£6m), plus the first two of five annual payments of $9.375m, (the first received from Abbott in January, the second due in January 2007.
CAT’s net cash at period-end is £161.7m (September 30, 2005: £175.6m).
The results boost came exactly seven days after AstraZeneca’s recommended £702m cash offer for CAT hit the headlines.
As flagged up when the AstraZeneca deal was made public, CAT has a number of products in its pipeline making excellent progress.
In January, HUMIRA became the UK biotech industry’s first blockbuster drug and last month Abbott announced first quarter sales of HUMIRA of $392 million and repeated its full year forecast of worldwide sales in 2006 of more than $1.9 billion. CAT receives royalty payments based on HUMIRA sales at the rate of 2.688 per cent.