Pacific Biomarkers (PBMC.OB) Posts Financial Results, Impacted by Broader Drug Development Environment

By @ibtimes on

Pacific Biomarkers Inc., a leading provider of specialized biomarker and contract research services, today announced its operating results for the second quarter and first half of fiscal year 2011, noting industry challenges and the company’s strategy for overcoming them.

“Our results for the three months ended December 31, 2010, are a reflection of the challenging drug development environment. While revenue increased from the prior year, gross profit was still short of plan. We remain confident that we are well positioned to execute our strategic plan for continued growth in the specialty laboratory and our biomarker services area,” Ron Helm, CEO of Pacific Biomarkers stated in the press release. “We benefited from a large contract in the first two quarters, while other revenues reflected what we have seen in our clinical services market in line with what other Contract Research Organizations (CROs) have reported.”

For the second quarter of fiscal 2011 ended December 31, 2010, revenue increased 20 percent to $2.53 million, compared with $2.11 million the second quarter of fiscal 2010. Operating loss was ($202,728) in the second quarter of fiscal 2011, compared to an operating loss of ($307,037) in the prior-year period. The company posted net loss of ($349,218), or ($0.02) per share, for the three months ended December 31, 2010, compared with net loss of ($457,629), or ($0.03) per share, the comparable three months of fiscal 2010.

Revenue for the six months ended December 31, 2010, increased 22 percent to $5.38 million, compared with $44.41 million during the comparable six months of fiscal 2009. Pacific Biomarkers posted an operating loss was ($250,252) in the first half of fiscal 2011, versus an operating loss of ($520,745) in the same period last year. Net loss for the six months ended December 31, 2010, was reported at ($551,581), or ($0.03) per share, compared with net income of ($730,799), or ($0.04) per share, for the comparable six-month period in fiscal 2010.

“The company’s result last year demonstrated that the drug development marketplace continues to challenge organizations supporting clinical trial work as well as biomarker development. We believe that our strategy of broadening our biomarker services offering continues to be a sound move even in view of somewhat mixed results so far for this fiscal year — down 15 percent for the quarter, but up 4 percent for the six-month period,” Helm stated. “The current market conditions may challenge us for a time and we have implemented measures to control costs including a reduction in force during the second quarter and other operating expense reductions. We believe we will be positioned appropriately as the market improves.”

“We anticipate improvement in demand for our broad portfolio of specialty laboratory and biomarker services. We have identified the biomarker services area as the long-term growth driver in a market segment where demand is strong and there continue to be no dominant players in this area,” concluded Helm.

For more information visit www.pacbio.com

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