February 7, 2011 / 9:39 PM / 7 years ago

UPDATE 2-Transition Therapeutics swings to Q2 profit

* Q2 EPS C$1.05 vs est C$0.02 loss/share

* Q2 rev at C$29.7 mln vs C$987,828 year ago

* U.S.-listed shares up 7 pct after market (Recasts, adds details, updates share mvt)

Feb 7 (Reuters) - Transition Therapeutics Inc TTH.TO TTHI.O posted a surprise quarterly profit, helped by revenue from a collaboration deal with Irish drugmaker Elan Corp ELN.I, sending its U.S.-listed shares up 7 percent in extended trade.

The Toronto-based firm had said in December it would relinquish its 30 percent ownership of its experimental Alzheimer drug to Elan.

Apart from royalties of 8-15 percent on net sales of the drug, Transition had said it could receive up to $93 million as milestone payments, under the agreement. [ID:nSGE6BQ02X]

The biopharmaceutical firm is now developing a class of small molecule compounds for the treatment of peripheral diseases like arthritis, Transition said in a statement.

Second-quarter earnings came in at C$24.3 million ($24.53 million), or C$1.05 a share, compared with analysts’ estimates of a loss of 2 Canadian cents a share, according to Thomson Reuters I/B/E/S.

The company’s U.S-listed shares were up 7 percent at $2.28 in after-market trade, after closing at $2.14 on Nasdaq.

They ended at C$2.11 on Monday on the Toronto Stock Exchange. ($1=.9904 Canadian Dollar) (Reporting by Gowri Jayakumar in Bangalore; Editing by Vyas Mohan)

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