MDS Pharma Revenues Continue to Fall, Hunt for Buyer Continues
Friday, September 11, 2009
Revenues continue to fall at MDS Pharma, the contract research arm of Toronto-based MDS. Third-quarter 2009 net revenues fell 28% from the same period last year, dropping to $49 million from $68 million. The year-over-year decline was a result of decreased demand for phase I and bioanalytical services, the company said.
Adjusted EBITDA for the contract research organization (CRO) was a loss of $14 million. In an effort to save $9 million annually, MDS initiated restructuring activities in the third quarter, laying off approximately 200 employees
Earlier this month, MDS announced plans to sell its entire CRO business—just two months after selling its late-stage operations and announcing it was reorganizing to focus on early-stage drug development. If a suitable buyer is not found, MDS said it will retain the early-stage division and invest in building the business.