QLT Inc. (TSX:QLT) lowered its revenue targets for 2010 Wednesday on reduced sales of its key product Visudyne, a treatment for macular degeneration of the eye.
The company, which is an anchor in the B.C. biotech sector, posted revenue of $8.6 million in the third quarter, down 2.3% from the same period in 2009.
QLT said the results were largely due to a 12.9% drop in Visudyne sales compared with the year before.
Still, president and CEO Bob Butchofsky is optimistic about the company’s financial position for the remainder of 2010.
“Visudyne sales look to be pretty stable at this point. We had to lower our guidance today, but we think we have a number now that’s achievable,” Butchofsky told Business in Vancouver Wednesday. “Over the last five months we’ve seen U.S. sales at 65 vials per day throughout that whole period of time, and our revised guidance just assumes that those level of sales continue through the end of the year.”
The company now expects Visudyne’s U.S. sales to total between $21 and $23 million for 2010, down from a March guidance of $27 to $31 million.
Visudyne sales projections worldwide have also been reduced.
The company expects its total revenue for 2010 to be between $43 and $45 million compared with an earlier projection between $47 and $53 million.
“It’s one of those things where we would sure like it to be better, but it’s still throwing off a lot of cash,” Butchofsky said of Visudyne sales.
“The strategic value of that is we’re reinvesting that cash in our pipeline, which has got some very interesting products in clinical studies at this point.”
As of September 30, QLT had a cash balance of $198.6 million compared with $186.3 million at June 30.
At press time, QLT’s share value was down $0.07 to $5.79.