Encorium Group Reports Mixed Results in Third Quarter
Pennsylvania-based CRO Encorium Group reported mixed results for its third quarter of 2007. The company’s net revenue more than doubled from $3.7 million in 2007 to $7.2 million during its third quarter.European operations constituted the bulk of the CRO’s revenue at $4.8 million with its North American business generating $2.3 million.
Encorium attributed the growth to the addition of Espoo, Finland-based CRO Remedium, acquired in November 2006.
The company's backlog increased to $36.8 million at September 30, 2007 versus approximately $29.1 million as of September 30, 2006.
However, the company reported a net loss of $1.28 million, double last year’s $643,000 for the comparable quarter. The company expects full year revenues of approximately $31 million compared with $15.3 million for the year ended Dec. 31, 2006. Depreciation and amortization expense increased to $623,000 due to $500,000 of non-cash amortization expense related to the business combination with Remedium.
"At the present time, Encorium’s pipeline of potential new business opportunities is in excess of $40 million. This is fairly evenly distributed between opportunities in North America and Europe. There have been a significant number of proposals carried over from our third quarter in which we are hopeful that final decisions will be made by the end of 2007," Stated Kenneth Borow, M.D., president and chief executive officer. We continue to evaluate a variety of acquisition possibilities and are focusing on companies and areas that would enhance Encorium’s existing geographic footprint and therapeutic area capabilities.
Barrow said Encorium is evaluation at specific acquisitions that would expand its current "geographic footprint".
"This can come through our expansion into emerging clinical trial markets (for example China, South America and/or India) as well as broadening of our capabilities within targeted sectors such as oncology, endocrinology, and medical devices. We hope to provide an update on our expansion plans in the coming months," he added.
Encorium also appointed Linda Nardone, Ph.D. chief operating officer, a newly created position for the company. Prior to Encorium, Nardone was general manager for Zila Biotechnology where she oversaw a phase III drug product for oral cancer.