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ProStrakan heads for breakeven

Friday 21st August 2009
Courtesy:http://www.prostrakan.com/randd.html

ProStrakan the Galashiels based pharmaceuticals group expects to reach monthly break even later this year, with its first reported profit in 2010, revealing a 40% rise in sales in the first half of the year. It has reported revenues of £37m in the six months to end June, with pre-tax loss falling 20% to £9.4m.

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 has enjoyed strong early sales.  The treatment reached £3.7m in the first half of the year, and 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 noted a good outcome from  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 (left) CEO  Wilson Totten said was "almost pure profit" and would become increasingly important as part of the business. "Once you get agreements set up, they will generate profits for years, with very little maintenance," he added.

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