Cangene Corporation today reports financial results for the fiscal year ended July 31, 2009.
Revenues for the year were $238.8 million, compared with $166.1 million last year, an increase of 44%. The dramatic increase results primarily from the strength of the Company's contract-services segment, which included $147.1 million in revenue from two contracts with the U.S. government to supply therapeutic products to the Strategic National Stockpile. In comparison, in 2008 the Company recognized $75.9 million related to these contracts. Strong commercial products sales also added to the increase in revenue. Partially offsetting the increases were decreased R&D-services revenues as work on joint development agreements with Apotex came to a close during 2009.
Net income for the year was $59.9 million or $0.86 per share, compared with $29.6 million or $0.42 per share a year earlier. Similar to revenues, the increase in net income is primarily due to the deliveries on government contracts during the year. Higher gross margin, a significant foreign exchange gain and the recognition of the gain from bargain purchase related to the acquisition of Twinstrand Therapeutics Inc. also contributed to the increase in net income. Higher selling, general and administrative expense for the year includes higher compensation costs (largely due to increased staffing necessary to support work on the government contracts), as well as higher consulting, licensing and director's fees.