Operating profit for the six months was £50K (€61K), roughly a third the total for the first half of 2009 as a result of a large share-based payment charge, while revenue edged up just 1.3 per cent to £2.48m.
CFO Jon Dootson told Outsourcing-pharma that, in addition to share-based charges, currency effects and a slow start to the year related to the downturn, inclement weather conditions and volcanic ash all impacted H1 performance
He went on to explain that: “[The] inability to fly in some compounds (following the eruption of Iceland’s Eyjafjallajoekull volcano)…cost us several hundred thousand pounds of revenue.”
However, despite this, Dootson was upbeat about Cyprotex’ prospects for the rest of 2010, highlighting the purchase of US counterpart Apredica as a key driver in the absorption, distribution, metabolism and excretion (ADME) services sector.
“[The acquisition] makes us largest specialist international player in this market Doubles US ADME tox share overnight,” continued Dootson, adding that it “gives immediate entry in in vitro tox market.”
He went on to explain that, as well as adding extra services to Cyprotex’ US offering, the deal provides a local presence in the world’s largest ADME toxicity testing market that helps “avoid shipping [and] time zone issues.”
Dootson also suggested that the Cellumen’s Cellular Systems Biology and High Content Toxicology IP, recently bought by Apredica, provides “significant cross selling opportunities with very little customer overlap.
He concluded that: “Cellumen brings multipoint toxicology testing to add to single point testing performed by Apredica.”
Dootson also outlined factors likely to drive the recovery of industry demand for preclinical contract ADME and toxicity testing services, explaining that the drivers for each part of the field will differ.
He suggested that the “Big Pharma market could be significantly boosted by a move to true outsourcing rather than maintaining significant in house capabilities,” which he added was already a trend among mid-sized pharmas.
And beyond industry, Dootson continued, “[the] Academia/not for profit market is growing as they have significant funds and have stepped into the some of the biotech 'shoes' as funding dried up for the smaller biotechs.”