Merrion turnover soars to €6.3m in full-year results
Published 09/03/2010 | 05:00
Irish drug development firm Merrion Pharmaceuticals nearly quadrupled its turnover to €6.3m last year and slashed its net loss to €1.6m from €5m, according to full-year results released yesterday.
Based in Dublin, IEX-listed Merrion develops oral versions of medicines that traditionally may have been administered by injection, for example. It develops those drugs using a technology platform owned by the company.
Last year, Merrion signed off on a second deal with the Denmark-based medicine supplier Novo Nordisk that could ultimately be worth up to $58m (€42.5m) to the Dublin firm.
The two companies are developing and hope to commercialise oral drug formulations, including an oral insulin product that is already being trialled.
Speaking to the Irish Independent, Merrion Pharmaceuticals chief executive John Lynch said he was pleased with the results and added the company continues to strengthen its operational platform.
He declined to give specific financial targets for 2010, but noted the company continues to provide a strong value-creation rationale for investors.
Merrion Pharmaceuticals finished 2009 with €7.2m in cash, which Mr Lynch said remains more than sufficient for the company's plans.
Yesterday's results also show that Merrion boosted its deferred income at the end of December 2009 to over €4.4m, up from €2.4m at the end of 2008. Trade and other receivables also rose to nearly €2.5m from €750,000.
Last year Merrion spent €4.4m on research and development, up 13pc on the previous year, while that cost was offset by a €840,000 tax credit.
Goodbody Stockbrokers analyst Ian Hunter said yesterday's results were ahead of expectations, with revenue having been 20pc higher than anticipated. R&D expenditure was also 13pc lower than anticipated by Goodbody.
Mr Hunter said Merrion was positioned to make "significant progress" in 2010. Shares in the company climbed 1.8pc yesterday to €3.95 on very low volume.