Crucell's 1st-qtr losses deepen 177% on buy

Dutch biotechnology company Crucell NV says that, for the first quarter of 2006, its loss deepened 177% on the like, year-ago period, to 14.7 million euros ($18.7 million), due to one-time integration costs related to its acquisition of Berna Biotech, as well as higher costs of sales related to revaluations of inventory, plant and equipment.

The firm, which had achieved a turnaround in its fortunes by the start of last year (Marketletter April 25, 2005), posting a loss of 5.3 million euros for the first quarter, bought established Swiss vaccines company Berna Biotech AG a few months ago in an all-share deal valuing the latter at 15.72 Swiss francs a share, or $450.5 million in total (Marketletter December 12, 2005).

However, during the reporting period, Crucell's turnover grew 172% to 11.7 million euros, as product revenues amounted to 7.0 million euros, of which pediatric and travel vaccines represent over 55%. The firm noted that product sales in March 2006 were up 9% over March 2005. License fees rose 27.7% to 2.3 million euros due to more initial payments from new contracts as well as annual and other payments on existing contracts.