EU and US sales help ProStrakan to enjoy fourth month in black

Published on Tuesday 18 May 2010 21:30

PROSTRAKAN, the Galashiels-based drugs firm, yesterday revealed it had made four consecutive months of profit for the first time in its history.

Chief executive Dr Wilson Totten said sales growth was "encouraging", with total revenues growing by 21 per cent year-on-year. Product revenues increased by 29 per cent, with growth coming from within the European Union and the United States, as well as sales through partner companies.

However, income from licensing was lower when compared with April 2009, due to a one-off licensing agreement last year for central and eastern Europe.

Totten said: "Sales growth is encouraging; ongoing partnering activity is strong; and we are working towards US approval of two of our products. With the first four months of the year under our belts and showing profitability on an earnings before interest, taxes, depreciation and amortisation (Ebitda) basis, we continue to focus sharply on growing the business profitably through continued sales growth and tight cost management."

Paul Cuddon, an analyst at KBC Peel Hunt, said ProStrakan's performance in Europe was "impressive", but the US "continues to underwhelm".

He added that upcoming US Food and Drug Administration decisions could re-invigorate the business.

KBC maintained its "buy" recommendation.