Novel encapsulation technology for oral delivery
Freund Pharmatec
Cambrex's Q4 results show that the life sciences company is finally beginning to make a comeback after deciding to sell its Biopharma unit, blamed for much of the company's financial difficulties last year.
Operating income for the company was back in the black from a $78.4m (€59.4m) loss last year to a $4.1m profit for this year's quarter, enabling Cambrex to generate a 3.2 per cent margin during the same period.
In the same way, the company's pre-tax profit dramatically improved to $4.1m, compared to a $78.4m loss in the previous year.
Meanwhile, the troubled Biopharma business recorded an operating profit of $1.7m in the quarter ended 31 December 2006 compared to a whopping $84.7m loss in the previous year, but still the turnaround didn't convince the company of the viability of the segment, which has seen been sold to Lonza.
Last month, the firm completed the sale of its two Bio units - Research Bioproducts and Microbial Biopharmaceuticals - to Swiss contract manufacturer Lonza for $460m, after unveiling its plans in October.
The poor performance of the Biopharma unit was dragging the company's profit margin down, the company said last year.
In addition, the company divested its two businesses in Cork, Ireland and Landen, Belgium during the quarter, which were both part of its Human Health unit, to International Chemical Investors (ICIG).
The company said the move represents a major step in its effort to strengthen the segment.
Now the company is left with two units - Human Health business and Corporate Infrastructure.
Sales in the Human Health segment increased 7.5 per cent in the fourth quarter to $66m compared to $61.4m in the previous year, but the performance does not include operations in Cork and Landen.
The company said the improvement was due mainly to increased demand for branded active pharmaceutical ingredients (APIs) but was partially offset by decreased sales of certain generic APIs.
The Human Health business provides products and services for the development and commercialisation of branded and generic small molecule therapeutics and includes four manufacturing and research facilities located in Iowa, New Jersey, Sweden and Italy.
