Encorium Releases Q2 Financials, Optimistic About Q3
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.