Kendle posts operating loss on early stage costs & charges

By Nick Taylor

- Last updated on GMT

Related tags Early stage Cost Income

Kendle posted a fourth quarter operating loss as early stage restructuring costs and goodwill impairment compounded a drop in revenues.

Declining early stage revenues prompted a strategic review to consider all options for the future of the unit. Following the review Kendle closed its Phase I site in Utrecht, the Netherlands, at a cost of $3.2m (€2.3m), and was hit by an early stage-related goodwill impairment charge.

Both charges contributed to an $11.7m fourth quarter operating loss but the restructuring is deemed necessary for the long-term prospects of the business. Candace Kendle, in her final results as CEO, said cost structure realignment positioned the company for long-term growth.

As of May 1 the task of realising long-term growth passes to Stephen Cutler, the incoming CEO. Achieving growth will require Cutler to improve the fortunes of the early stage unit and overturn a double-digit year-on-year decline in late stage fourth quarter revenues.

Operating income from the late stage unit in the fourth quarter, as for the full year, declined on lower revenues. It was early stage though, and specifically its costs and charges, underpinning the organisation-wide loss.

Revenues from early stage fell to $6.3m in the fourth quarter and these earnings were wiped out by the costs and charges incurred following the closure of the Utrecht facility.

Despite difficulties in Utrecht the proportion of revenues coming from Europe increased slightly. Latin America also made gains at the expense of Asia-Pacific and North America. This was broadly inline with full year performance.

Reasons for optimism include year-on-year growth in fourth quarter new business awards and a sequential upturn in gross book-to-bill. However, despite the uptick in fourth quarter awards, total business authorisations at the end of 2010 were at the same level as 12 months previously.

Related news

Show more

Related products

show more

The Right CDMO Can Unlock Faster Drug Development

The Right CDMO Can Unlock Faster Drug Development

Content provided by Lonza Small Molecules | 15-May-2023 | Interview

Drug development presents biotech companies with ever-changing challenges. Enabling a faster end-to-end process requires seamless flexibility and extensive...

SDTM supplemental qualifiers explained

SDTM supplemental qualifiers explained

Content provided by Formedix | 12-May-2023 | White Paper

What are SDTM supplemental qualifiers? In short, these are variables in non-CDISC datasets that cannot be mapped to a variable that matches the SDTM standard....

Plan for success with process liquid and buffer preparation

Plan for success with process liquid and buffer preparation

Content provided by Thermo Fisher Scientific - Process Liquid Preparation Services | 25-Apr-2023 | White Paper

Setting the groundwork for successful scale-up is essential for getting a therapeutic to market quickly and efficiently, but navigating the unknowns associated...

Related suppliers

Follow us


View more