By Erin McCarthy
Anacor Pharmaceuticals Inc. (ANAC) said it swung to a profit in
the fourth quarter, driven by gains from a litigation settlement
and a rise in revenue.
Shares of the company rose more than 3% in after-hours trading
as the company's revenue beat market expectations.
Revenue more than doubled to $8.5 million. Analysts polled by
Thomson Reuters had expected $2.85 million in revenue.
For the quarter, the biopharmaceutical company reported a profit
of $130.7 million, or $3.01 per share, compared with a loss of
$12.5 million, or 36 cents a share, a year earlier.
A litigation settlement with Valeant Pharmaceuticals
International Inc. (VRX) provided the main boost to its bottom
line. In October, Valeant agreed to pay $142.5 million to Anacor to
resolve all outstanding disputes between the two companies. The
settlement resolved litigation over alleged breaches of contract
involving Valeant units Dow Pharmaceutical Sciences Inc. and
Medicis Pharmaceutical Corp.
Write to Erin McCarthy at erin.mccarthy@wsj.com
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