Total Revenue for the three months ended March 31 was C$5.8m (€4.1m), up 14.4 per cent on last year with growth being driven by a 134 per cent expansion of Warnex’ bioanalytical services business to C$2.1m.
The firm attributed the increase to previously a number of postponed studies being conducted in Q1 and its efforts to win business from new and existing clients.
Growth of Warnex’ bioanalytical business is in direct contrast with its analytical unit. The business, which provides quality control testing services to the pharmaceutical sector, saw revenue slide 22 per cent to $2.2m.
Warnex said that the decline was due to a drop in revenue generated at its laboratory in Laval and its Neopharm division in Blainville as a result of decreases in volume from ‘major customers’ during the period.
The firm also said it “has increased its business development efforts in order to reverse the negative revenue trend and increase business from new and existing customers.”
Warnex’ other business unit medical diagnostics, which provides pharmacogenetic, paternity and DNA testing, contributed revenue of $1.3m, up 13 per cent with drug industry pharmacogenetic work contributing 12 per cent more than last year.
Quarterly deficit down
Warnex’ loss for the period was $67,814 down from $896,424 in the first quarter of 2010.
CEO Mark Busgang said he was pleased with the progress Warnex had made in the quarter and predicted that the trend would continue.
“We are continuing to focus on business development in all our divisions to increase our top and bottom lines, while working diligently to finalize the restructuring of our balance sheet."
And Warnex’ focus on business development may be starting to pay off.
In February the firm landed a contract with US biotech major Genzyme under which it will provide will perform enzymatic assays on dried blood spot samples to aid the diagnosis of diseases like Fabry, Gaucher’s, Pompe and Mucopolysaccharidosis.