Global CMO Patheon reported a 115% increase in gross profit in its fiscal third quarter, and the company is increasing its annual revenue guidance as a result.
The Canadian company reported $55.5 million in gross profit for the period that ended July 31, up from $25.8 million a year earlier. Patheon pulled in $15.5 million in net income in the quarter, compared with $600,000 a year earlier, and its revenue jumped 18% to $203.7 million from $172.7 million last year, the company said. Patheon had projected to make $725 million in revenue for fiscal 2012, which ends Oct. 31, but the CMO is now expecting $735 million.
Patheon saw its core CMO business grow 21.3% during the quarter, bringing in $168.3 million, while its smaller pharmaceutical development unit grew 4.1% to $35.4 million.
In March, after Patheon took a $20.9 million quarterly operating loss, CEO James Mullen preached patience, saying the company planned some strategic changes to move into the black. One quarter later, his company is boosting its revenue projections. "We continue to be encouraged by the progress we make in transforming the company," Mullen said in a statement. "Our transformation activities continue on track, and we are seeing the results of those efforts in our margins."
As part of those ongoing changes, Patheon sold its secondary clinical packaging and clinical distribution services business to Bellwyck Packaging Solutions this month for an undisclosed sum.
- read Patheon's statement