Strong sales put ProStrakan on road to profit

PROSTRAKAN has continued its march towards profitability, revealing a 40 per cent rise in sales in the first half of the year.

The pharmaceuticals group, which is based in Galashiels, yesterday reported revenues of 37million in the six months to the end of June, with its pre-tax loss falling 20 per cent to 9.4m. After years of losses, ProStrakan expects to reach monthly breakeven later this year, with its first reported profit in 2010.

First-half revenue was boosted by strong early sales of Sancuso, a patch to prevent nausea for patients undergoing chemotherapy which was launched in the US in November. Sales of the treatment reached 3.7m in the first half of the year, and it is expected to be the firm's second-biggest selling product in 2009.

As well as rising sales from its own sales force in the US and Western Europe, ProStrakan revealed the fruits of outlicensing agreements for third parties to sell its drugs in countries where it does not operate.

The group earned 2.6m from more than 30 outlicensing agreements during the period, which chief executive Wilson Totten said was "almost pure profit" and would become an increasingly important part of the business as sales grew.

"Once you get the agreements set up, they will generate profits for years, with very little maintenance," he added. Shares in ProStrakan closed up 1.25p at 123.5p.