IS Pharma upbeat as profits dip

NORTH West medicines group IS Pharma said it was pleased with progress despite a dip in half-year profits.

The Chester-based group which develops, buys and commercialises late-stage pharmaceuticals focused on critical care, oncology and neurology, said it had concentrated on the launch of Variquel, its latest product in the six months to the end of September.

Revenue in the period ticked up to £5.9m from £5.8 last year, but profit before tax fell from £1.4m to £521,000 after higher marketing and administration costs were amassed.

Chief executive Tim Wright said the prospects for the business were strong: “We continue to implement our strategy of acquiring and commercialising speciality products.

“We have rapidly gained regulatory approvals for Variquel and successfully launched it in key EU markets. This together with our other promoted products is contributing to strong underlying growth in revenues and gross profit.

“IS Pharma is a dynamic and profitable international business, soundly positioned for further significant growth.”

IS said the 2008 figures had been boosted by a one-off gain of £700,000 related to a distribution deal in the US, and said product revenues had risen 16% in the period and underlying gross profits by 17%.

Variquel, which is used to treat a condition affecting the oesophagus, has now been launched in the UK, Ireland, Denmark, Netherlands, Portugal and Sweden, as well as Germany, Austria and Sweden.

IS is working on launching in France, Italy, Spain, Belgium, Luxembourg and Finland.

The company said customers had responded well to the launch of the drug, particularly in the UK.

This helped European revenues for Variquel to double compared with last year.