Contract research news in brief
pharmafile | July 28, 2009 | News story | Research and Development |Â Â CROÂ
The first crop of second-quarter figures from the contract research sector reveals a mixed bag, with PPD and Icon affected by weakening demand but Chiltern buoyant after a bumper fiscal 2009. There are also business updates from Encorium and CBI.
Another quarter marked by high levels of project cancellations and weak demand pegged back operating profit and revenues at US contract research organisation (CRO) PPD, although its net profit rose thanks to the sale of subsidiary Piedmont Research Centre to Charles River Laboratories. Revenues came in at $355 million, down 12%, with drug development revenue down 11% to $330m.
Icon Plc posted higher quarterly profits but scaled back its earnings and revenue guidance for 2009 as a whole. The Irish CRO said second-quarter net income came in at $22.8m, up from $18.8m a year ago. Net revenues rose marginally to $220m.
UK-headquartered CRO Chiltern International appears to have shrugged off the financial woes affecting the broader CRO sector in the last 12 months. It said its revenues in the year-ended 31 March 2009 were 44% higher than the prior year, coming in at £73.7m ($122m), with around 15% of the increase due to acquisitions. Operating profit rose 57% to £9.48m, and the firm's backlog of contract was up more than 40% to £137m.
Encorium has completed the sale of its US business to the US subsidiary of Pierrel SpA of Italy. The purchase price was $2.7m, comprised of $80,000 in cash as well as the assumption of $2.6m in liabilities. The chief executive of the unit, Dr David Ginsberg, will hold the same position at Pierrel Research USA. Almost all the staff employed by Encorium have been retained by the new owner.
Commonwealth Biotechnologies Inc of the US has agreed to sell two laboratory divisions – Fairfax Laboratories and CBI Services – to Bostwick Laboratories for a little over $1m in cash plus royalties. Fairfax offers DNA profiling and identity testing, while CBI Services carries out molecular biology, microbiology, peptide and protein chemistry analyses for clients.
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