Patheon Inc., a provider of contract development and manufacturing services to the global pharmaceutical industry, has announced its results for the second quarter and six months ended April 30, 2010. Total revenues for the second quarter were $175.4 million or 4.8% higher than the same period last year. Excluding currency fluctuations, current year second quarter revenues would have increased by approximately 1.1% versus the same period last year. Operating income for the second quarter increased to $15.0 million, up from $13.4 million in the same period last year. Second quarter adjusted EBITDA was $30.0 million, up from $20.
million in the comparable period last year. All amounts are in U.S. dollars unless otherwise indicated.
“We are seeing strong evidence of an improving pharmaceutical contract services business climate for Patheon,” said Wes Wheeler, Patheon’s Chief Executive Officer and President. “We are beginning to see stronger sales activity for our pharmaceutical development services (PDS) business, and significantly higher levels of quotation activity in the commercial side of the business. We attribute this to an improving economy, increased funding activity and progress with plant consolidations.” “I am also pleased with the progress we have made to strengthen our manufacturing platform, management team and financial position. Dr.
Mark Kontny has joined our management team as President of Global Pharmaceutical Development Services and Chief Scientific Officer, and we successfully completed a refinancing of the company which has increased liquidity and given us a very stable capital structure with long-term debt maturities,” said Mr. Wheeler. “I firmly believe that these actions have further solidified Patheon’s position as a leading contract development and manufacturing provider.” Mr. Wheeler continued, “We announced that we have signed an expanded contract manufacturing agreement with Merck. The expanded agreement clearly positions Patheon as a preferred supplier to Merck. Products and services are being delivered from eight of our 11 global facilities. This contract is representative of the type of supplier relationships we expect to see with a broader group of customers.” “Our Puerto Rico operations delivered strong sales in the first half of the year, and we are meeting customer expectations from an operating perspective. However, the two sites operated at a loss in the first half and continue to be a drag on our EBITDA results. We are working to minimize the impact in the near term while we move forward with the site consolidation program. This project is on schedule for completion by the end of 2011 and will start to show benefits prior to the shutdown,” said Mr. Wheeler.