Lower sales of sterile products, the negative impact of a stronger Canadian dollar, and costs related to the potential sale of the company combined to stymie growth at Draxis Health in the first quarter (end-March 31).
Consolidated revenues for the Montreal-based company slipped 8% to $19.2 million (U.S.), compared with $21 million in the first quarter of 2007. Product sales declined to $18.7 million, down 5% from $19.6 million in the first quarter of 2007.
The firm's first-quarter net loss was $1.4 million, compared with a net income of $2 million in the same quarter a year ago.
On April 4, Draxis reached an agreement for Jubilant Organosys of Noida, India, to acquire all of Draxis' outstanding common shares for $255 million. The transaction is pending.
Related Reading
Indian firm to buy Draxis for $255 million, April 4, 2008
Draxis confirms sell-off rumors, March 17, 2008
Chalk River shutdown hurts Draxis' results, February 8, 2008
Draxis previews Q4 earnings, January 18, 2008
Draxis Health names new leaders, January 8, 2008
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