Patheon loss narrower than expected; shares rise
(Reuters) - Contract drugmaker Patheon Inc (PTI.TO) posted a narrower-than-expected quarterly loss on robust revenue across its segments, and the company forecast higher sales for the second half.
The company's shares rose as much as 12 percent to a month high on Wednesday on the Toronto Stock Exchange.
Patheon, which provided development and manufacturing services to 300 pharmaceutical companies last year, said new customer wins will boost sales this year.
"We've certainly experienced some nice wins and I would say those are pretty broad based," Chief Executive James Mullen said on a call with analysts.
The company, which saw a jump in consultation fees for its strategic review in the United Kingdom in the last quarter, said those costs would be minimal for the rest of the year.
Patheon started a strategic alternative process for its various businesses last year to cut costs. Earlier this year, it said it could cut about 400 jobs at the Swindon manufacturing plant in the United Kingdom.
The company said it sees 2012 revenue above $725 million, compared with $700 million in 2011. Patheon had in December forecast 2012 revenue to be modestly higher than last year.
"H2 turnaround is ahead of schedule," RBC analyst Douglas Miehm said.
The company's net loss widened to $79.7 million, or 61.7 cents per share, from a loss of $10.4 million, or 8.1 cents per share. Second-quarter loss included an impairment charge of $57.9 million related to its Swindon plant restructuring.
Excluding items, the company lost 22 cents per share, while two analysts, on average, expected a loss of 51 cents per share, according to Thomson Reuters I/B/E/S.
Revenue for Patheon rose 7 percent to $181.5 million. (Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)