Canadian CDMO Patheon more than doubled its losses last quarter, but the company says that's just a hiccup as it integrates the newly acquired Banner Pharmacaps and pushes toward its goal of $1 billion in annual revenue.
For the fiscal 2013 first quarter, Patheon reported losses of $51.4 million, compared to $19.3 million the year before, due largely to charges stemming from the $255 million Banner buyout, which closed in December.
But while the acquisition marred profits, it has already been a boost to revenue. Sales jumped 38.7% last quarter to $213.5 million, Patheon reported, and Banner's softgel assets accounted for $23.3 million of that total.
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| Patheon CEO James Mullen |
Contract manufacturing revenue increased 46.7% on the quarter to $180.1 million, and Patheon's up-and-coming drug development segment grew 7.4% to $33.4 million.
The company says it's still on track to rake in $1 billion in revenue in 2013, and Q1's revenue growth demonstrates that the CDMO is well on its way, said CEO James Mullen.
"We continue to be encouraged by the progress we are making in transforming the company," Mullen said in a statement. "... The integration of Banner continues and we are on track to implement operational excellence initiatives at these sites in the same way as we have done at Patheon sites."
- read Patheon's full results