Speedel's 2007 loss down 19.2% on sales

Switzerland-based Speedel Holding AG says that lower operating costs helped reduce its 2007 operating loss to 69.1 million Swiss francs ($67.7 million), an improvement of 19.2% on the prior year's deficit. The Basel-headquartered firm added that its generation of 3.1 million francs in annual revenue, as a result of royalty payments from its Tekturna/Rasilez (aliskiren) partner Novartis, had further narrowed its shortfall.

Speedel's R&D expenditure was down 18.2% to 60.1 million francs, after the firm stopped its SPP301 (avosentan) program on safety concerns (Marketletter January 1 and 8, 2007). General and administrative costs for the period remained unchanged at 12.0 million francs, as increased communication expenses were offset by savings in other business areas.

Analysts at Lehman Brothers, who had predicted an operating shortfall of 75.8 million francs, total revenue of 2.6 million francs and R&D costs of 65.0 million francs, said that a higher-than-expected contribution from Tekturna, particularly the 1.7 million francs in the fourth quarter, had allowed Speedel to exceed estimates.