Minrad International, an interventional pain management company, has reported its 2008 third quarter financial results, which ended Sept. 30.
The Orchard Park, N.Y.-based company reported revenues of $7.1 million for the third quarter of 2008, up 163 percent compared to $2.7 million of revenue in the third quarter of 2007.
Minrad said its net loss for the 2008 third quarter was $10.8 million, compared to a net loss of $5.3 million in the third quarter of 2007.
“While we have demonstrated our ability to grow revenue, we have not yet been able to generate positive operating profit and operating cash flow. Our lack of liquidity continues to drain our financial strength and flexibility to operate our business and service the needs of our customers,” said Dave DiGiacinto, president and chief operating officer of Minrad.
“Management began the process of evaluating alternative strategies in May 2008 when we retained the services of Barclays Capital as our strategic advisor. It is also important to note we retained the investment banking team of Barclays Capital Inc. to facilitate our $40 million debt financing in 2008,” according to DiGiacinto.
Minrad’s board of directors retained the services of Lehman Brothers in May for the purpose of providing financial advisory services to the company with respect to exploring strategic alternatives, including a possible sale of the business. On Sept. 22, Barclays Capital acquired the North American investment banking franchise of Lehman and as part of such transaction Barclays assumed Lehman’s role as financial advisor.
Barclays is now facilitating Mindrad’s $40 million debt financing for 2008, according to the company.