Cosmo's first-half 2008 results beat forecasts

Italian drugmaker Cosmo Pharmaceuticals says that, in the first six months of 2008, basic and diluted loss per share narrowed 46.1% year-on-year to 0.06 euros. Net loss totaled 800,000 euros ($1.3 million), down from 1.7 million euros in the comparable period last year, beating forecasts.

Turnover reached 11.9 million euros, up 20.3%, as manufacturing revenues jumped 27.9% while cost of goods sold only increased 2.4% to 6.7 million euros. Even though total personnel grew 6.5% to 133 people, staff expenses declined 11.7% because of a one-time payment made last year. The improved margins were primarily due to the steady shift of manufacturing capacity to MMX-based products which are more profitable. The total revenue of drugs using Cosmo's proprietary formulation technology soared 81.4% and now accounts for 41.6% of total company income.

During the period, late-stage trials of its corticosteroid for ulcerative colitis, Budesonide MMX, were initiated in the USA and European Union, driving clinical development costs up 44% to 3.2 million euros, in line with the Lainate-based firm's expectations. Cosmo has a low-risk pipeline as its three gastrointestinal drug candidates are all novel, MMX formulations of approved compounds.