Alchemia loss grows on lower fondaparinux sales

Alchemia (ASX:ACL) has reported a wider net loss for the financial year ending in June, partly as a result of a declining share of profit from sales of anti-coagulant generic fondaparinux.

The company’s net loss increased to $6.9 million from $4.8 million. Its cash balance dipped 14.6% to a still solid $11.1 million.

Alchemia’s net profit share of fondaparinux sales by marketing partner Dr Reddy’s Laboratories fell to $8.1 million, from $9.6 million in FY13.

For the fourth quarter, profit share on fondaparinux sales was $1.62 million after accounting for the US$500,000 Alchemia will pay as part of its quarterly commitment towards reducing production costs.

Alchemia and Dr Reddy’s agreed in 2012 to invest $10 million between them to help maximise the profitability of fondaparinux sales. Alchemia’s equal share of this investment is being paid quarterly until the end of the calendar year.

Because the investment will be fully paid by next year, Alchemia said in an ASX announcement that it expects its profit share to improve in the future. Dr Reddy’s has also recently launched the product in Canada and will seek additional market approvals.

Towards the end the financial year, the company also commenced recruitment for a clinical trial of HA-Irinotecan in combination with cetuximub as a second-line therapy for metastatic colorectal cancer (mCRC).

Alchemia also expects to be ready to report top-line results from a major phase III trial, also in mCRC, by the end of the current quarter.

Alchemia (ASX:ACL) shares were trading 0.81% lower at $0.61 as of around 1.30 pm on Tuesday.