Idera Pharmaceuticals posts profit

Idera Pharmaceuticals Inc. today reported a profit for the fiscal second quarter, beating Wall Street's expectations for a loss.

The developer of experimental biotechnology treatments for infectious and autoimmune diseases posted quarterly net income of $1.3 million, or 5 cents per share, compared with a loss of $3 million, or 14 cents per share, in the year-ago quarter.

Revenue rose to $7.9 million from $1.9 million, an increase the Cambridge-based company attributed to higher license fees and reimbursed expenses under a collaboration agreement with Merck KGaA that began in February.

On average, analysts surveyed by Thomson Financial forecast a loss of 9 cents per share on revenue of $5.2 million

The higher revenue was partly offset by rising quarterly research and development expenses, which increased to $3.8 million from $3 million a year earlier. General and administrative expenses rose to $3.2 million from $2.4 million in the year-ago period.

Idera said that as of June 30, it had cash, cash equivalents and investments totaling $59.5 million, up from $23.7 million at the end of last year. The company expects its current total is sufficient to fund operations through at least March 2010.

Idera is developing experimental treatments targeting infectious, autoimmune and respiratory diseases, as well as cancer. The company's work focuses on so-called toll-like receptors that direct immune system responses.

Shares of Idera Pharmaceuticals slipped 9 cents to $14.89 in morning trading. (AP)