Contract research organization (CRO) Encorium released its Q2 earnings report after the bell Thursday, reflecting an increase in net revenue for Q2 2008 over Q2 2007 but a decrease in net revenue for the six months ended June 30, 2008 compared with the same period in 2007. Net revenues for the first six months of 2008 dropped to $15.7 million from $16.1 million for the same period in 2007. The company also reported a net loss of $3.5 million, or $0.17 per share, for the first six months of 2008 compared with a net loss of $738,000, or $0.04 per share, for the first six months of 2007.
All is not bleak for the Wayne, Pa.-based company, however. Earlier this week, Encorium president and chief medical and strategic officer Kenneth M. Borow, M.D., announced the signing of $3.5 million in new contracts with a global pharmaceutical company. These contracts, which cover clinical trials in the field of vaccines and infectious diseases, will be conducted in multiple European countries. The company has signed approximately $13.5 million of new business during the past three weeks, Borow said.
Encorium has also signed non-binding letters of intent to acquire CRO Prologue Research International and to merge with Linkcon, a British Virgin Islands holding company. This merger would make Encorium a global CRO. As part of the merger agreement, Linkcon—also known as Fine Success Investments—would acquire an India-based CRO and a Chinese company that holds licenses to conduct clinical trials in China and Hong Kong.