March 13, 2009 / 4:29 PM / in 9 years

UPDATE 1-Cangene shares fall on missed expectations

* EPS C$0.08 vs consensus view C$0.15

* Revenue C$34.5 mln vs consensus C$40.2 million

* Shares down 18.3 percent at C$4.66 (Adds details and analyst’s comments)

TORONTO, March 13 (Reuters) - Cangene Corp’s CNJ.TO shares dropped more than 18 percent on Friday after the Canadian biotechnology-products company reported quarterly results that fell well short of expectations.

Winnipeg, Manitoba-based Cangene said it earned C$5.6 million ($4.4 million), or 8 Canadian cents a share, in its second quarter, ended Jan. 31, up from C$3.5 million, or 5 Canadian cents a share, in the year-before quarter.

Revenue was C$34.5 million, up 47.2 percent from C$23.5 million in the year-earlier quarter.

But analysts were expecting earnings per share of 15 Canadian cents a share and revenue of C$40.2 million, according to Reuters Estimates.

The miss came as the company failed to book any shipments of its key hyperimmune blood product to the U.S. government during the quarter.

However, subsequent to the end of the quarter, the company shipped about $13.6 million worth of the product to the United States, which will boost its third-quarter results, Versant Partners analyst Doug Loe said.

The company expects to ship considerable amounts of the product to the U.S. government over the next few years.

Three of Cangene’s products, including the blood product, have been accepted for inclusion in the U.S. Strategic National Stockpile.

“There is a big lump of revenue that is going to flow through their income statement that is going to materially lift their EPS not only this year but over the next two years,” Loe said.

“So I think that the market is kind of hyper-ventilating to the fact the results were transient.”

The company’s shares, which have fallen about 12 percent since the start of the year, were 18.3 percent lower at C$4.66 on the Toronto Stock Exchange at midday on Friday.

$1=$1.27 Canadian Reporting by Scott Anderson; Editing by Peter Galloway

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