Minrad International, an interventional pain management company, has reported a decrease in revenues and an increase in net loss for the second fiscal quarter of 2008, which ended June 30.
The Orchard Park, N.Y.-based Minrad reported revenues of $4.2 million for the second quarter of 2008, down 4 percent compared to $4.3 million of revenue in the second quarter of 2007.
For the quarter, the company booked a net loss of $ 11.7 million, compared to a net loss of $3.4 million in the same quarter last year. The company also had a net loss through June 30 of $ 14.9 million, compared to a net loss of $ 6.8 million for the prior year.
Operating expenses for the quarter increased by $1.4 million, or 32 percent, versus second quarter of 2007. The company said that $1 million of the increase was due to establishing a non-cash reserve for the accounts receivable due from the company's U.S. distributor.
Loss from operations was $6.3 million for the second quarter of 2008 versus $3.4 million in 2007 for the same period, which the company said was driven largely by the gross profit shortfall and the non-cash U.S. distributor receivable provision. The loss from operations for the six-month period was $8.9 million versus $6.9 million loss in the comparable period last year.
Bill Burns, chairman and CEO, said that several factors contributed to the company’s second quarter operating performance. “Revenue growth was constrained due to limitations in production resulting from the following factors: the temporary shutdown of our new sevoflurane line for scheduled cleaning and maintenance, delays in receipts of raw materials prior to our May closing of the $40 million in new financing and the disc rupture of one of our production reactors. Our operating margins were negatively impacted by the lack of revenue and production growth as well the impact of certain charges to establish operating reserves for potentially uncollectible receivables and to set up an obsolescence reserve for our device inventory," he said.