BioChem Pharma Hits Profitability In 1996

Canadian biotechnology company BioChem Pharma achieved net profits in1996 of C$33.4 million ($24.3 million), or 63 Canadian cents per share. This compares with a net loss of C$5 million, or 10 cents in 1995. The firm's share price declined on news of the financial results, as analysts and industry observers were disappointed with the figures. BioChem's operating revenues for the year were C$233.6 million, up 24.7%, and it spent C$32.2 million on R&D, a rise of 45.7%.

"We are very proud that our flagship discovery Epivir (lamivudine/3TC) has rapidly become a cornerstone of HIV combination therapy," said Francesco Bellini, president and chief executive of the company. "With today's results, driven by the royalty revenue on worldwide sales of Epivir, I am pleased to announce that BioChem has entered a new era of growth and profitability," he added.

The firm has announced that it is taking a 30% stake in a newly-created company, GeneChem Technologies Venture Fund. The fund, with committed capital of C$100 million from Canadian investors, will invest in academic projects and early-stage private or public companies in the are of genomics. It will also invest outside Canada.