Hybritech Posts Profit in Year; First in Its History
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SAN DIEGO — Hybritech Inc., whose products have been touted as potential cancer-treatment breakthroughs, on Wednesday reported a financial breakthrough--the first annual profit in its six-year history.
Net income for the year ended last Dec. 31 was $1.1 million, compared to a $500,000 loss the year before. Revenue for the year reached $33.9 million, more than double the previous year’s $16 million.
About half of the earnings resulted from a net operating tax-loss carry-forward, according to Chief Financial Officer Timothy J. Wollaeger.
The company, which makes and markets monoclonal antibodies, is in a “good position” because of new products that have been accepted in the marketplace, Wollaeger said.
The new products, which include a cancer diagnostic kit introduced last December and a pregnancy test kit introduced last October, favorably affected fourth-quarter results, he added.
Contract revenue increased nearly threefold to $16.3 million.
The increase was the result of development and clinical trials of cancer diagnosis, imaging and therapy technology--part of a $70-million research and development limited partnership that was offered and sold last year.
Gross profit margins of 52% are within industry standards of between 50% and 65% but below the company’s 1985 goal of 60%, Wollaeger said.
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