Biomarkers are a hot topic in drug development but despite expertise in this area, PBI, like many contract research organisations (CRO), has been negatively affected by the economic climate.

“The current market conditions may challenge us for a time and we are taking appropriate measures to control costs and realign our business to enhance our support of our clients”, explained Ron Helm, CEO of PBI.

When the market improves Helm believes PBI will be well placed to establish a foothold in the biomarker sector. He said PBI has “identified the biomarker services area as the long-term growth driver in a market segment where demand is strong and there are presently no dominant players."

This optimism is underpinned by the expected upturn in business through the second half of its 2010 fiscal year. Helm believes PBI will begin fiscal 2011 with its largest ever backlog and this will drive growth throughout the year.

However, for now the situation is more downbeat. PBI posted an operating loss of $307,000 in the second quarter, down from a $555,000 profit in the corresponding period of last year.

This shift in fortunes was caused by a 35 per cent drop in revenues, which fell to $2.1m. In the first six months of its fiscal year PBI generated revenues of $4.4m, compared to $5.5m in the first half of 2009.

Helm added: "We have seen changes in our clinical services market in line with what other CROs have reported, which have affected current revenues."