Member Article

Macclesfield’s Cyprotex experience delays and acquisition costs

Macclesfield’s Cyprotex, a preclinical pharmaceutical research and development group announced that revenue is up 19%.

While revenue is up 19% over the previous year, profits for the year ending 31 December 2014 are expected to be £11.7 million with EBITDA just above break-even due to a number of delays and acquisition costs.

In the company’s interim results announcement of 28 August 2014, Cyprotex announced revenues including acquisitions were £5.41 million for the first half of the year, with a reported operating loss of £584,000 for the same period.

The company says that they have experience a lower than anticipated demand for acquired services which will also impact revenues and profitability.

Chief executive officer, Dr. Anthony Baxter said: “Whilst we expect revenues to increase in 2014 by around 20% in excess of 2013’s revenues, the growth has not been as strong as anticipated given the significant investments we have made this year.

“This is because we have experienced unforeseen delays in validating these complex new offerings.

“Most of these new developments have now been validated and the new assays and services have now been launched and we expect them to contribute positively to growth in 2015.

“Revenues from the newly acquired assets from the CeeTox acquisition have also been softer than expected”.

This was posted in Bdaily's Members' News section by Sophia Taha .