ProStrakan sets its sights on £64m sales of latest drug patch

PROSTRAKAN, the Borders-based specialist drugs company, is targeting sales of up to $100 million (£64m) in the United States for an anti-vomiting patch it hopes to launch before the end of the year.

But the American debut of Abstral, which is already on sale in Europe, was delayed after the US Food & Drug Administration extended the medicine's review period by three months.

Chief executive Dr Wilson Totten said he was disappointed that the FDA had extended the review but added he was not surprised because new safety measures are being introduced for all strong opiates.

He told The Scotsman: "I would have loved for it to be approved early but I think we'll still have a positive outcome in the coming months,

"In Europe, it's sold extremely well, with sales expected to reach $20m. In the US, it could be between $50m and $100m. It's a very significant opportunity for us."

His comments came as Pro Strakan yesterday unveiled its maiden interim profit, with earnings before interest, tax, depreciation and amortisation (Ebitda) reaching 1.2m, compared with a loss of 4.3m in the first half of last year. The company said the swing into profit had been triggered by growing revenues - up 23 per cent to 45.4m - and tight controls on costs.

Chief financial officer Allan Watson said: "We've used a bit of good old-fashioned Scottish house-keeping to keep costs down.

"But we've still spent more on our sales force than last year, putting representatives in hospitals to drive sales of Abstral."

Watson noted analysts' predictions that ProStrakan may turn a pre-tax profit next year and said that was the goal towards which the firm was working.

Interim pre-tax losses narrowed from 9.4m to 2.7m.

Analysts at KBC Peel Hunt said ProStrakan's "financial performance has turned a corner" and reiterated their "buy" rating.