Patheon saw revenues increase in its fiscal third quarter thanks to ‘existing business” and ongoing transformation efforts.
The Toronto contract manufacturing organisation (CMO) saw sales grow 18 per cent to $204m in the three months to July 31.
Gross profit was also up, growing to $55m from $25.8m in the comparable quarter in fiscal 2011. Patheon said the gains were "primarily due to higher volumes, operating efficiencies, favorable material mix and lower depreciation expense."
On a segment by segment basis Patheon’s CMO business led the way with revenues increasing 21.3 per cent to $168m. Pharmaceutical Development Service revenues were also up, climbing 4.1 per cent to $35m.
CEO James Mullen said: "We continue to be encouraged by the progress we make in transforming the company. Our top line growth in the quarter was strong.
“Our transformation activities continue on track, and we are seeing the results of those efforts in our margins. As a result of the strong growth in the quarter, we are increasing our revenue guidance for the year to be in excess of $735m."
The firm – which continued its transformation with the sale of its clinical packaging business to Bellwyck earlier this month - will hold its Q3 conference call later today.