Merrion positive on revenue gains

Merrion Pharmaceuticals today said the outlook for the company was positive after reporting major revenue gains in its preliminary…

Merrion Pharmaceuticals today said the outlook for the company was positive after reporting major revenue gains in its preliminary results for 2009.

The product development company this morning revealed a net loss of €1,629,000 compared with a net loss of €5,062,000 in the previous year. However, Merrion saw a 373 per cent increase in revenue to €6,335,000 for the year, compared with €1,340,000 in the previous year.

Merrion also posted net finance income of €178,000 compared to €363,000 in 2008; research and development expenses of €4,410,000; and administration expenses of €2,477,000.

Commenting, chief executive John Lynch said: "We are pleased with the strong operating results for 2009. The significant growth in revenue during the year is an indication of our commitment to meet necessary deadlines set out in our partner programs with Novo Nordisk and the realisation of our first development milestone from this collaboration.

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"The future for Merrion is positive. Following the acquisition of the new facility in Citywest, Co. Dublin, and additions to the Merrion team, we now have much needed capacity to continue our partner programs and to avail of future market opportunities. We are committed to our internal R&D projects and to expanding our early stage pipeline."

He added the company was focused on building on the success of its recent cancer patient study for the company's Orazol drug.

Goodbody said the Merrion results were a strong set of figures, with the revenue of €6.3 million, 20 per cent ahead of the €5.3 million the analyst had forecast. Costs came in lower than expected with R&D 13 per cent below expectations at €4.4 million and SG&A coming in at €2.5 million compared to the Goodbody forecast of €3.4 million.

Merrion was set up in 2004 to commercialise various technologies acquired from Elan Corporation. Merrion's patented drug delivery technologies increase bioavailability, by improving absorption in the gastrointestinal tract, of drugs that are otherwise poorly absorbed.