ImClone Systems Inc., the biotechnology company at the center of the Martha Stewart insider-trading scandal, on Monday reported a narrower quarterly loss.
The company, which finally won U.S. approval last month for cancer drug Erbitux, reported a loss of $26.3 million, or 35 cents per share, compared with a loss of $39.4 million, or 54 cents per share.
ImClone's revenue, derived primarily from research and development collaborations with other companies, rose to $19.8 million from $14.9 million.
U.S. regulators refused to review ImClone's application for Erbitux in December 2001. But before the refusal was announced and the company's stock fell, founder and then-CEO Sam Waksal tried to sell shares of ImClone, and prosecutors believe he tipped off his daughter, his father and possibly his friend Stewart.
Stewart, a cultural icon who transformed her domestic style into a media empire, was convicted of obstruction of justice charges on March 5.
Meanwhile, ImClone has shed Waksal and his brother Harlan Waksal and hopes to successfully launch the drug with help of partners Bristol-Myers Squibb Co. in the United States and Merck KGaA in Europe.
ImClone said on Monday that as a result of its research costs over the years, it has accumulated "a deficit" of about $642.6 million as of Dec. 31, 2003.
The company said that with the Erbitux approval, its deficit will decline as it begins to generate revenue from sales of Erbitux by Bristol-Myers and Germany's Merck and recognize revenues from license fees and milestone payments.
