February 7, 2008 / 5:46 PM / in 10 years

UPDATE 1-Draxis reports loss on isotope hit

(In U.S. dollars)

TORONTO, Feb 7 (Reuters) - Draxis Health DAX.TO posted a fourth-quarter loss on Thursday, hurt by lower sales at its contract manufacturing division and by the effects of a shortage of medical isotopes following a Canadian reactor shutdown late last year.

The Canadian specialty-healthcare company said it lost $551,000, or 1 cent a share, for the period ended Dec. 31, compared with a profit $3.7 million, or 9 cents a share, for the same quarter in 2006.

Revenue was $20 million, down from $23.1 million for the same period a year earlier.

Analysts were expecting the company, which pre-announced its loss per share figure last month, to report a loss 1 cent a share, and revenue of $19.8 million.

But investors still showed some disappointment over the results, knocking the shares down 22 Canadian cents, or 5.8 percent, to C$3.58 on the Toronto Stock Exchange.

The results were hit by lower product sales in both the contract manufacturing and the radiopharmaceutical business segments, as well as by the stronger Canadian dollar in the fourth quarter.

The company suffered from a much-publicized delay in the shipment of isotopes from the Chalk River reactor.

The 50-year-old Chalk River reactor was shut down by operator Atomic Energy Canada Ltd in November, causing the shortages of isotopes that, when injected into the body, give off radiation that can be seen by a camera to diagnose cancer, heart disease and other medical conditions.

Although it said it was able to satisfy customer orders as a result of its agreement with alternative sources, the shutdown prevented radiopharmacies from carrying out procedures, which resulted in lower than anticipated demand.

The company said it expects “progressively” improving results in 2008 due to new businesses, products and additional contracts. But it said it would not provide a “specific” outlook. ($1=$1.01 Canadian) (Reporting by Scott Anderson; Editing by Peter Galloway)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below