Radiopharmaceutical developer North American Scientific reported third-quarter net sales of $4.9 million, up 9% compared with the $4.5 million posted in the third quarter of 2000. For the period (end-July 31), the Chatsworth, CA-based firm had a net loss of $1.8 million, compared with net income of $1.5 million last year.
Without a one-time charge of $3.7 million regarding its linear accelerators, NAS would have had net income of $600,000. NAS had initially contracted to have two linear accelerators constructed to produce palladium-103 and other isotopes not commercially available at the time, according to president and CEO Michael Cutrer.
When NAS became aware that the accelerators were not going to be completed in accordance with the contract, the company decided to exercise contractual rights and take possession of the uncompleted systems, he said.
Because NAS can't secure any assurance that the construction of these accelerators could be completed or that it would be financially beneficial to do so, the company has decided to write off the accelerators, he said. In addition to the one-time charge, developmental costs associated with the company's Apomate radiopharmaceutical imaging agent affected quarterly profitability, according to the company.
By AuntMinnie.com staff writers
August 29, 2001
Related Reading
NAS names Robert Morgan as VP, June 19, 2001
Theseus starts Apomate phase II trials, April 3, 2001
North American Scientific dips into the red, March 1, 2001
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