SurModics' pharma biz sees revenue fall in Q1 2011
The pharma division, which covers SurModics’ delivery, injectables, nanoparticle and implant technologies, generated revenue of $2.7m for the three months to December 31, down 6 per cent sequentially.
This decline, coupled with flat sales in its medical device business and a 7 per cent drop in revenue from its in vitro diagnostics division, left SurModics with revenue of $15.2m for the period, down 2 per cent sequentially, on an operating loss of $700,000.
The results follow just weeks after SurModics said it was considering selling the pharmaceutical business and focussing on its devices and diagnostics units, which were also set up in a restructuring move it enacted in October.
Recently appointed CEO Gary Maharaj, whose predecessor Bruce Barclay led efforts to expand SurModics’ pharma business with the acquisition of Brookwood Pharmaceuticals in 2007, confirmed that the unit’s future was still being examined.
“Prior to joining SurModics, my views of this business was [that it was] just a few key decisions away from getting back on the right track. The board and the management team have already made the first decision which is to seek strategic alternatives for the pharmaceuticals business.
“I believe that the pharma business has sound long-term growth and profitability prospects in an appropriate strategic setting and financial structure. It is the aim of this process to unlock that value.”
Maharaj added that: “SurModics is at an important crossroads…by refocusing our efforts within a well-defined core we have an opportunity to build upon our strengths,” going on to say that management is developing a strategic plan that will be announced in due course.
