A year earlier, the Patheon Inc a provider of the contract drug manufacturing services. It lost US$11.2 million in the second quarter reversing a $10.9 million profit a year earlier. The toronto company is a share for the quarter ended April 30 compared with a profit of 8.4 cents a year earlier. The news is disappointed investors who sold off the company’s stock by more than 12 percent in the trading on the Totonto Stock Exchange. The company which reports in the US currency in the US dollar resulted in an $8.8 million currency translation hit on its books. The revenues for the quarter fell 3.1 percent to9 $170 million. The second half to improve the significantly from the second quarter levels. They are actively addressing the commercial production challenges of the second quarter which includes that higher than normal inventory.
They are actively addressing the commercial production challenges of the second quarter which included a higher normal inventory writeoffs at several sites, as well as the increase overtime at two sites related to a major new product launch and the significant increase in market demand for an existing product. The PDS business experienced an unusual level of the contract cancellation and the delays during the first half related to the customers regulatory approval and the clinical trial outcome issues as well as industry M&A activity. The created short term of the weakness in the demand at some of the PDS sites. It has staffed for a higher level of the activity, the contract cancellations are not typically major PDS issues and they have not seen the further material issues over the last few months. The patheon is the global provider of the contract development and the manufacturing services to the worlds major drug companies. It has 10 drug making plants, eight development centers and one clinical trial packaging operations across the North America and Europe.
REFERENCE:
http://www.pharmpro.com/news/2011/06/business-Patheon-Loses-11M-in-the-Second-Quarter/
