Oct 22 2009
Cangene Corporation today reports financial results for the fiscal year ended July 31, 2009.
Revenues for the year were $238.8 million, compared with $166.1 million last year, an increase of 44%. The dramatic increase results primarily from the strength of the Company's contract-services segment, which included $147.1 million in revenue from two contracts with the U.S. government to supply therapeutic products to the Strategic National Stockpile. In comparison, in 2008 the Company recognized $75.9 million related to these contracts. Strong commercial products sales also added to the increase in revenue. Partially offsetting the increases were decreased R&D-services revenues as work on joint development agreements with Apotex came to a close during 2009.
Net income for the year was $59.9 million or $0.86 per share, compared with $29.6 million or $0.42 per share a year earlier. Similar to revenues, the increase in net income is primarily due to the deliveries on government contracts during the year. Higher gross margin, a significant foreign exchange gain and the recognition of the gain from bargain purchase related to the acquisition of Twinstrand Therapeutics Inc. also contributed to the increase in net income. Higher selling, general and administrative expense for the year includes higher compensation costs (largely due to increased staffing necessary to support work on the government contracts), as well as higher consulting, licensing and director's fees.
"Our strong financial performance in 2009 means we are well positioned with the cash resources to drive R&D and take advantage of investment opportunities. We are also increasingly focused on developing our commercial brands - our recent acquisition of the U.S. commercialization rights for HepaGam B(R) is a positive step in that strategy," said Dr. John Langstaff, president and CEO of Cangene.
An increase in net non-cash working capital balances and other assets related to operations of $9.5 million resulted mainly from increased inventories and contracts in progress, which primarily reflects plasma-collection activities, and work-in-process and finished-goods inventories for the stockpiling contracts.
The Company had $56.1 million in cash at the year-end, compared with $14.7 million last year. At July 31, 2009 Cangene had no long-term debt.
Readers are referred to the cautionary notes regarding Forward-looking Information and non-GAAP Financial Measures at the end of this release. Certain comparative figures in the following financial statements have been reclassified to conform to the current year's presentation.