Financial Report: Patheon 3Q09

Patheon

3Q09 Revenues: $164.4 million (-16%)

3Q09 Loss: $6.0 million (loss of $14.0 million in 3Q08)

YTD Revenues: $479.0 million (-12%)

YTD Loss: $11.5 million (loss of $36.6 million YTD08)

Comments: Revenues were impacted by setbacks in operations in Puerto Rico, where the company “had difficulty releasing a sufficient volume of product lots due to efforts to optimize manufacturing parameters and difficulty meeting stringent release specifications for one product,” according to a Patheon statement. Overall, Commercial Manufacturing revenues dropped 16% to $132.9 million. The Pharma Development Services (PDS) unit saw a 17% increase in the number of projects underway in 3Q09, but revenues in that segment dropped 16% to $31.5 million. The company reported, “Unfortunately, the average value of these projects has declined due to a combination of increased price competition and pharmaceutical companies becoming more cautious with their development budgets. Patheon believes that this is a temporary, market driven situation, as sales of new business have recently shown a more encouraging trend.” For the year, manufacturing revenues have dropped 13% to $385.8 million and PDS revenues have fallen 9% to $93.2 million.