Canadian radiopharmaceutical developer Draxis Health of Mississauga, Ontario, reported declines in revenues and earnings in the company's financial results for the third quarter and first nine months of 2007.
For the third quarter (end-September 30), revenues were $18 million, down 15% compared to $21.2 million for the same period of 2006. For the nine months, revenues were $58.4 million, down 10% compared to $64.6 million in 2006.
Draxis reported a net loss of $1.3 million, compared to net income of $2.6 million in the third quarter of 2006; net income for the first nine months of 2007 was $2.2 million, compared to net income of $7.8 million in 2006.
The company attributed the lower sales to its contract manufacturing business, including reduced demand as a result of inventory adjustments by customers, continued production delays in contract manufacturing that prevented shipments before the end of the quarter, and severance costs, all compounded by the continued rapid strengthening of the Canadian dollar versus the U.S. dollar.
In other Draxis news, the company announced that its president and CEO, Dr. Martin Barkin, will retire effective December 31, 2007. Dan Brazier, chief operating officer (COO), will take on Barkin's duties until a new chief executive is found.
By AuntMinnie.com staff writers
November 1, 2007
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