Milestone payment lifts cancer drug maker Medivation to 3rd-quarter profit from year-ago loss

MarketsAssociated Press

Medivation Inc., which makes the prostate cancer drug Xtandi, said Thursday that it swung to a profit in the third quarter as it booked a $90 million milestone fee from partner Astellas Pharma.

The San Francisco-based company earned $78 million, or 96 cents per share, compared with a year-ago loss of $13.3 million, or 18 cents per share. Revenue surged to $200.5 million from $60 million, boosted by the milestone fee it received for the expanded approval of Xtandi by the Food and Drug Administration in September.

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The results topped analysts' average forecast for earnings of 84 cents per share on sales of $182.4 million, according to FactSet.

Medivation is forecasting full-year revenue at the high end or just above its prior forecast of $615 million to $640 million.

Medivation shares have risen 64 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $104.95, a rise of 68 percent in the last 12 months.