MBI's cost cuts reduce loss in third quarter

Ultrasound contrast firm Molecular Biosystems (MBI) was successful in curbing its net loss by $3.4 million in its fiscal third quarter (end-December 31), but the San Diego company is still looking at a net loss of $1.3 million for the period.

A dip in product revenues from Optison, a second-generation perfluorocarbon ultrasound contrast agent, contributed to the loss. MBI reported third-quarter sales and royalty revenue of $433,000, a $252,000 drop from 1998 figures. MBI said that while end-user sales of the agent have been higher, the company is deriving less revenue because of changes in its licensing relationship with Mallinckrodt of St. Louis. MBI reported $2.5 million in revenues for the quarter, a figure that includes a $2 million payment from Chugai Pharmaceutical of Japan for Optison clinical trials.

However, MBI’s operating expenses this quarter were reduced by 50%, to $3.6 million, because of an agreement with Mallinckrodt in which the company is funding Optison clinical trials for radiology and cardiology indications.

MBI plans to begin clinical trials this year on a liver-specific CT contrast agent, MB-804. Animal studies have indicated that MB-804 may help monitor primary and metastatic liver tumors as small as 1 to 2 mm. The agent also could prove useful in pinpointing disease of the hepatobiliary system.

By AuntMinnie.com staff writers
January 28, 2000

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