Cangene Reports First Quarter 2013 Results
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Cangene Corporation reports financial results for the first quarter of 2013, which ended on October 31, 2012.
Revenues for the quarter were $36.5 million, compared with $21.5 million in the same quarter last year.
The 70% increase in revenue is largely attributable to revenue from U.S. government stockpiling contracts that was $12.2 million in the current-year quarter, compared with $4.8 million in the prior year.
Commercial contract-manufacturing and product sales also increased by a combined $6.6 million in the quarter.
Product-sales revenues include net sales of $0.4 million from the newly launched episil® product.
Net income of $4.5 million for the current-year quarter compares with a net loss of $4.4 million in the same quarter last year. The net income in the current-year quarter results from a combination of factors, including a higher gross margin in the contract-manufacturing services segment, lower independent R&D expense because of the cancellation of IGIV development at the end of fiscal 2012, and a $2.5-million pre-tax gain on the sale of the three U.S.-based plasma centres.
Earnings per share of $0.07 for the first quarter of 2013 compares with a loss per share of $0.07 in the same quarter last year.
"Our solid financial results this quarter reflect progress in our refocused strategy that's aimed at streamlining our operation and growing our commercial business," says John Sedor, President and Chief Executive Officer of Cangene.
Sedor continued, "We launched episil® in the U.S. during the quarter, and it's already showing promise as a revenue generator. We are encouraged by the positive response to that product as well as some growth in WinRho® SDF sales," he added. "We will continue to work hard to increase commercial product sales and generate returns for our stakeholders."
As at October 31, 2012, Cangene has a cash balance of $36.2 million and no debt. Excluding changes in working capital, cash provided by operations was $2.8 million for the current-year quarter, compared with cash used of $5.6 million in the same quarter last year.
The current period includes a $4.6-million increase in working capital that resulted primarily from a $9.8-million increase in accounts receivable, although this was partially offset by a $3.1-million decrease in inventory.
As a result, cash used in operations in the quarter was $1.8 million, compared with $5.7 million in the first quarter last year. A significant portion of the outstanding balances contributing to the increase in accounts receivable was collected in the first week of the second quarter of 2013.
Highlights
• Earned net income of $4.5 million for the quarter
• Maintained strong balance sheet with a cash position of $36.2 million as at October 31, 2012, and no debt
• Launched episil® in the United States for the management and relief of pain associated with oral lesions, including oral mucositis that results from cancer therapy and other causes
• Posted strong commercial product sales and contract-manufacturing revenues
• Submitted Biologic License Application with the United States Food and Drug Administration for H-BAT™ [Botulism Antitoxin Heptavalent (A, B, C, D, E, F, G)(Equine)]
• Announced new biodefence-related contract with U.S. government related to supply of Vaccinia Immune Globulin Intravenous™ (Human), and expanded existing contract related to Anthrax Immune Globulin Intravenous (Human)
• Sold U.S.-based plasma centres to Grifols, through its wholly owned Biomat USA, Inc. subsidiary, in a transaction that closed on October 22, 2012.
