CuraGen op income swings to profit

US drug developer CuraGen has reported a swing into profit from continuing operations in the quarter ending June 30, 2008, due to a huge rise in collaboration revenue and cost-cutting measures, but still saw a drop in total net income.

The firm posted income from operations of $39.3 million in the second quarter versus a loss from operations of $21.6 million in the same period of last year. However, without last year's $76.5 million boost from discontinued operations, net income was down 28.5% to $39.3 million, or $0.69 per share. R&D costs were cut 67% to $3.6 million, helping to bring down total operating expenses 76.4% to $5.1 million. Whereas other revenue came from the sale of the firm's rights for belinostat to Danish drugmaker TopoTarget for approximately $38.0 million (Marketletter April 28).

Tim Shannon, chief executive of CuraGen, said the firm looks "forward to completing enrollment in the melanoma study [of CR011-vcMMAE] and subsequently presenting updated results during the fourth quarter of this year."