Financial Reports: Patheon 4Q11

Patheon 4Q/FY11

4Q Revenues: $181.6 million (+2%)

4Q Loss: $5.4 million (loss of $900,000 in 4Q10)

FY Revenues: $700 million (+4%)

FY Loss: $16.8 million (loss of $5.0 million in FY10)

Comments: Commercial manufacturing revenues were up 1% in 4Q11 to $146.8 million and +5% for FY11 to$572.6 million. Pharmaceutical development services (PDS) revenues rose 5% in 4Q11 to $34.8 million and +1% to $127.4 million in FY11. FY10 included a non-recurring payment of $11.2 million due to a discontinued project. In the earnings call, chief executive officer and president James Mullen commented on Patheon’s ongoing restructuring, noting, “It’s going to be a really transformational year. We’re not only looking to recoup the investment we’ve made in the transformation in 2012, but to make those savings project forward into following years.” He also noted that Patheon’s sterile facilities in Italy have been garnering interest in the wake of Ben Venue’s withdrawal from the CMO market and Hospira’s recent warning letter.