Draximage reports Q2 sales upswing

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Draximage, the radiopharmaceutical division of Mississauga, Ontario-based Draxis Health, saw a double-digit growth in product sales for its parent company’s fiscal 2007 second quarter (end-June 30).

Product sales in the second quarter were $5.9 million (U.S.) representing a 10 percent increase over the second quarter of 2006; for the first six months of 2007 product sales increased 13 percent to $11.6 million, driven mainly by increased sales of sodium iodide I-131 products to U.S. customers and increased cold kit sales, according to Draxis Health.

Product gross margins in the second quarter of 2007 were 59 percent of sales compared with 61 percent for the second quarter of 2006 and for the first six months of 2007 product gross margins were 60 percent versus 62 percent for the same period in 2006, due in part to foreign exchange pressures caused by a stronger Canadian dollar, the firm noted.

Operating income was $1.2 million in the second quarter of 2007 compared with $1.2 million in the second quarter of 2006. For the first six months of 2007, operating income of $2.5 million represented an increase of $200,000 or 11 percent over the first six months of 2006, primarily due to volume growth of sodium iodide products and increased cold kit sales, the company said.