First quarter sales at dermatology-focused IGI increased 16 per cent year-on-year as the US-based business benefited from an uptick in demand for its drug development and manufacturing services.
In a first quarter conference call with investors Charlie Moore, CEO of IGI, said: “In 2012 we find our business strategy evolving, with a notable shift towards pharmaceutical business. The focus of our contract business has moved towards pharmaceutical partners.”
IGI inked two such deals in the first quarter. The first deal is with a brand pharmaceutical company that will transfer manufacture of its topical drug product to the IGI plant in Buena, New Jersey. IGI will be the sole manufacturer and packager of the product.
The second deal will see IGI develop generic versions of two topical drug products for a client. If the products win US Food and Drug Administration (FDA) approval IGI will manufacture and package the drugs.
After inking the deals IGI has five pharmaceutical clients and 10 active projects. To support this work IGI has hired staff in product development and analytical chemistry. Despite adding staff IGI managed to cut costs slightly.
Outgoings at IGI include expenditure on its efforts to bring generic products to market. IGI expects to file up to six abbreviated new drug applications in 2012 and will ramp up its sales work to support the launches.
To cover the increased expenditure IGI will rely on its contract business. “Continued efforts to expand this business will help us fund development costs in 2012”, Jenniffer Collins, chief financial officer at IGI, said.