« Return to News | CROs/Service Providers

Encorium Doubles Loss in Q2, Continues Effort to Sell European Subsidiary

Tuesday, August 25, 2009 07:08 AM

Encorium’s losses continued to grow in the second quarter, increasing $604,000  to $1.3 million or $(0.06) per diluted share, compared with a net loss of $665,000, or $(0.03) per diluted share for the same period last year.

Net revenue for the quarter also plunged to $4.5 million, a 23.37% drop compared with last year’s quarter. Year-to-date revenues were $9.02 million, down from $11.32 million in 2008.

The Wayne, Pa.-based contract research organization (CRO) entered into a non-binding letter of intent to sell its European subsidiary, Encorium Oy, in May, but that sale has yet to materialize.  As part of the company’s financial results released Monday night, Encorium said it does not expect this transaction to close until the fourth quarter. In the event the sale does not go through, the CRO said it will seek strategic alternatives, including an attempt to secure additional financing.

“If we are unable to secure additional financing on terms acceptable to us and on a timely basis, we may significantly reduce our operating costs, which may include the cessation of operations in some countries or seek stockholder approval to liquidate and dissolve. Any decision to liquidate and dissolve the company may occur at any point during or before the first quarter of 2010. It is unclear whether there would be funds available for distribution to our stockholders in these instances,” Encorium said in a press release.

Encorium completed the sale of its U.S. operations to Pierrel Research USA last month.

Share:          
CLINICAL TRIAL RESOURCES

Search:

NEWS ONLINE ARCHIVE

Browse by:

CWWeekly

December 17

Medici Global says its Alzheimer's Facebook page demonstrates the need for more early detection trials

Analysts: Expect more equity purchases of CROs in 2013

Already a subscriber?
Log in to your digital subscription.

Subscribe to CWWeekly.

The CenterWatch Monthly

January 2013

Parexel celebrates 30 years of change, growth
CRO's founder and chairman reflects on challenges of the past, present and future

Strategies for increasing patient diversity in trials
Sponsors look to improve racial, ethnic recruitment without going overseas

Already a subscriber?
Log in to your digital subscription.

Purchase the January issue.

Subscribe to The CenterWatch Monthly.

December 2012

Publicity, regulation tightening reins on use of KOLs
Debate rages over need to revamp how sponsors use, pay medical experts

Time may be right to makeover the investigator brochure
Size, complexity prevent critical document from being thoroughly read

Already a subscriber?
Log in to your digital subscription.

Purchase the December issue.

Subscribe to The CenterWatch Monthly.

JobWatch centerwatch.com/jobwatch

Featured Jobs

More Jobs

 

Copyright © 1995-2013 CenterWatch.