GlaxoSmithKline paid Advancis $8 million in 2003. Advancis said $3.5 million of that sum has yet to be recognized. But Glaxo could have forked over substantially more in royalties if the two companies had jointly developed a commercial medicine, analysts said.
Advancis will now have to make do without revenue from GlaxoSmithKline. The company raised $60 million when it went public in November. But it is not profitable. It lost $21 million on revenue of $3.6 million in 2003.
Advancis chief executive Edward M. Rudnic said the break with the British drugmaker was about finances, not any problems with the technology.
(Ricky Carioti -- The Washington Post)
The company yesterday released third-quarter financial results. For the three months ended Sept. 30, it lost $9.2 million, compared with $8.2 million during the same period a year ago. Revenue rose to $3 million, up from $312,500. It is scheduled to hold a conference call this morning to discuss the results.
The company also said yesterday it will stop developing a generic version of Biaxin, an Abbott Laboratories antibiotic. Advancis was developing the medicine with Par Pharmaceuticals Cos.
Rudnic said two versions of the drug have failed to meet federal requirements for performance. Neither drug used Advancis's slow-release dosing technology.
Advancis has one drug on the market, an antibiotic called Keflex, prescribed for skin infections. It acquired U.S. rights for the medicine from Eli Lilly and Co. in July.
Advancis is conducting advanced human tests on a slow-release version of the antibiotic amoxicillin, which the company said could reach the market by 2006.
Wade of Pacific Growth Equities said "a lot is hinging on that test."
"Clearly they are going to need to have success there to reinforce the value of the technology," he said.