Edmonton biopharm Isotechnika Inc. returned to profitability in its second quarter due mainly to a cash milestone payment.
For the second quarter ended June 30, the company reported net earnings of $1.53 million or $0.02 per common share.
This was an improvement over 2003’s Q1, when Isotechnika had a net loss of $5.94 million or $0.09 per common share.
For the year-earlier second quarter, Isotechnika reported net earnings of $3.18 million or $0.05 per common share.
The company said positive results from a Phase 2 human clinical trial of its lead drug ISA247 earned it a milestone payment last quarter of $21.9 million from international pharma giant Roche, which signed a deal last year to co-develop and commercialize ISA247.
The drug is used to prevent transplant rejection and to treat auto-immune diseases.
The payment was comprised of $8.35 million in cash and $13.55 million in equity investment.
To June 30, total contributions from Roche have amounted to $68.46 million.
Isotechnika’s cash and short-term investments as of June 30 were $75.2 million compared to $64.2 million as of Dec. 31, 2002.
“With the Roche milestone and equity payments received in June 2003 and with the successful completion of the $15-million US private placement on July 17, 2003, the company’s financial position has been significantly enhanced,” said Dr. Robert Foster, chairman and CEO.
Isotechnika (ISA-TSX) is an international biopharmaceutical company focusing on the development of immunosuppressive drugs.
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