The contract research organisation (CRO) recorded an operating profit of $15.2m, compared to a loss of $1.8m in the fourth quarter 2006, while the firm's pre-tax profit $12.2m, versus the $7.0m it lost during the period last year.
Kendle's previous financial results have been clouded by amortization charges, expenses and residual debt from the acquisition of the Phase II-IV clinical services unit of Charles River Laboratories a year and a half ago. Significantly contributing to the year-ago profit losses was an $8.2m impairment charge on a customer relationship asset.
Meanwhile, the CRO reported a 21 per cent increase in sales to for the quarter to $104.3m, helped by a 6 per cent rise in new business awards.
Service revenues by geographic region for the fourth quarter consisted of 50 per cent in North America, 40 per cent in Europe, 6 per cent in Latin America and 4 per cent in the Asia-Pacific region.
We may see these ratios begin to shift soon - Kendle has been keeping focused on expanding its global presence of late, making key hires to grow the business further beyond the US.
The firm has recently appointed Dr Ross Horsburgh as vice president of Global Clinical Development for the Asia Pacific, who is charged with providing oversight for the Kendle's Phase II-III operations in the Asia Pacific, including offices in Melbourne and Sydney, Australia as well as New Delhi, India and Beijing, China, and will also be charged with leading the firm's overall expansion plans in the region.
"With a population base of nearly 4bn and R&D spending expected to reach $20bn by 2013, Asia Pacific is recognised by our customers as one of the more dynamic regions in which to conduct clinical trials," said company CEO Dr Candace Kendle.
Around the same time, Kendle made another appointment with the goal of growing its Phase I business globally.
"Phase I is a rapidly growing area of opportunity and is an integral part of Kendle's business plan, with the market to growth between 13.4 and 16.0 per cent annually through 2010," said Kendle.
Phillip Davies will take on the role of vice president, Phase I, which includes oversight of a bioequivalence unit in West Virginia and a clinical pharmacology facility in the Netherlands. He will also focus on expanding Kendle's early-phase capabilities worldwide, the firm said.