Chiron has reported net income of US$23.5 million, or $0.12 for the third quarter, compared with a loss of $19 million, or $0.10 per share, in the same period of last year. The profitable quarter comes even though the company took a $91 million charge after its annual flu inventory was lost over contamination concerns that cut the US influenza vaccine supply almost in half.

Because of those contamination issues, Chiron, of Emeryville, California, did not tally any Fluvirin influenza vaccine sales in 2004's third quarter. The UK's Medicines and Healthcare products Regulatory Agency temporarily suspended the company's license to produce the drug in its Liverpool, U.K., plant.

Drops in influenza vaccine sales and overall vaccine sales were also attributed to the company's inability to sell Fluvirin. Sales from flu vaccines in the third quarter of 2004 totalled $93 million versus $183 million in the same period of last year. Overall vaccine sales fell to $168 million for the quarter reported, while last year's third quarter generated sales of $263 million.

Chiron settled an HIV patent lawsuit with Hoffmann-La Roche. and included the settlement in its 2004 third-quarter earnings.