June 10, 2011 / 12:28 PM / in 7 years

UPDATE 2-Patheon posts surprise Q2 loss; shares sink

(Adds analysts’ estimates comparison, share movement)

* Q1 loss/shr $0.09 vs est EPS $0.10

* Q1 rev down 3 pct

* Shares down 13 pct

June 10 (Reuters) - Contract drugmaker Patheon Inc posted a surprise quarterly loss hurt by contract cancellations and a weaker U.S. dollar, sending its shares to a 28-month low.

Shares of the company fell 13 percent to $1.92 on Friday on the Toronto Stock Exchange.

The second quarter saw an unusual level of contract cancellations and the entire first half of fiscal 2011 saw delays in pharmaceutical development services, Patheon, which provides contract development and manufacturing services to the pharmaceuticals industry, said in a statement.

February-April quarter saw a loss of $11.2 million, or 9 cents a share, compared with a profit of $10.9 million, or 9 cents a share, a year earlier.

Revenue fell 3 percent to $170 million.

Analysts on average had expected the company to earn 10 cents a share, on revenue of $198.2 million, according to Thomson Reuters I/B/E/S.

The weakness in the U.S. dollar hurt adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) by $8.8 million in the quarter.

Adjusted EBITDA more than halved to $14.3 million.

Patheon’s commercial business was also hurt by operating performance issues and production delays. (Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian)

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