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Rene Geohrum, CEO of BioSyent, said the decrease in international revenue was the result of “restrictions in a particular export market.”
BioSyent’s (TSXV:RX) Q3 2018 financial results released on Wednesday (November 21) wreaked disappointing results, coupled with a share price drop.
The company noted a decrease in international pharmaceutical revenue by 51 percent to C$281,801 compared to the same quarter of the previous year. Year-to-date (YTD), this revenue figure decreased by 15 percent. Its Canadian pharmaceutical revenue increased by 11 percent to C$4.70 million and YTD increased by 13 percent.
Over the trading period Wednesday, Biosyent’s share price decreased 10 percent to C$7.20 as of market close.
Overall, BioSyent’s net revenue decreased three percent for the quarter, compared to Q3 2017, to C$5.25 million. The YTD amount for this figure increased five percent to C$15.61 million.
Rene Geohrum, CEO of BioSyent, described the decrease in international revenue as facing “restrictions in a particular export market.” He said this led to reduction in the amount and size of planned international shipments of the company’s biggest product FeraMAX, during the quarter.
“We don’t expect these challenges to persist over the long-term,” he said. “We anticipate further instability in international FeraMAX sales in the near-term.”
FeraMAX is the company’s oral iron supplement available in pharmacies across Canada.
Geohrum added the company remains “encouraged” by its continued growth regardless of the overall decline in company sales. This is the company’s 33rd consecutive profitable quarter, with growth generated across the company’s portfolio, he said.
Other key figures in the financial report include a two percent decrease in net income after tax for the quarter and an increase of eight percent YTD. Inventory increased by 47 percent from C$908,825 to C$1.34 million for Q3 2018 compared to the previous year. Prepaid expenses and deposits also made a jump by 220 percent from C$147,326 to C$470,760, for the same time period.
Cash, cash equivalents and short term investments increased by 17 percent from C$19.33 million to C$22.60 million, from the beginning of the year until the end of Q3 2018.
BioSyent is a specialty pharmaceutical company basing its growth on in-licensing or acquiring products which have proved to be safe and effective. As of its August 2018 fact sheet, the company has 10 international marketed products and six brands sold in. The company also has eight marketed products and three in development.
The company describes its business model as structured to minimize the risk to produce consistent and profitable growth.
Investors can look forward to the year end and Q4 2018 earnings results in a few months, otherwise the company will have updates in its news.
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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.
