Cosmo's 2007 profit beats estimates

Italy-based Cosmo Pharmaceuticals SpA swung into a 2007 net profit of 100,000 euros ($152,128) from the 300,000 euro loss it recorded in the previous year. The firm said that the improvement had been driven by a 44.5% hike in revenue, which reached 21.9 million euros for the year.

Cosmo said that, while contract manufacturing had provided the majority of its turnover, growing 13.9% to 14.6 million euros, products developed using its MMX technology contributed 7.3 million euros, up some 210% on 2006. The firm added that the 8% US market share that the MMX-based ulcerative colitis drug Lialda (mesalamine) has gained since its launch by licensee Shire (Marketletter March 26, 2007), further validated the technology.

Lehman Brothers, which had expected Cosmo's revenue to be 20.7 million euros and net loss at 300,000 euros, said that higher costs may hamper the firm's performance in 2008.