Innovata transforms into profitable firm

UK specialty pharmaceuticals company Innovata has seen a dramatic turnaround in its financial performance, moving into strong profitability for the fiscal year ended March 31, 2006. The group was formed last July, when ML Laboratories acquired Quadrant Technologies (Marketletter June 27, 2005).

Chief executive Kieran Murphy said that "Innovata has transformed over the past year, with board and management changes, cost reductions and the successful integration of Quadrant and the financial results demonstrate the impact of these changes." He went on to note that, "with a clear focus on products for respiratory disease and inhaled therapeutics and further positive news on the approval of Adept [a product for surgical adhesions], Innovata now has a strong platform for sustainable revenues and profit growth."

The Nottingham-headquartered firm saw revenues leap 125.6% on the prior fiscal year to L18.5 million ($34.4 million), with operating profit at L7.2 million, compared with a loss of L2.2 million, and net profit of L4.7 million versus a L3.6 million loss. Cash and short-term investments at March 31 amounted to L20.1 million. Total turnover comprised L6.9 million of licensing and evaluation fees, development fees of $3.3 million, royalties at L7.2 million and device sales of L1.1 million.