More pharma contracts this FY will certainly help:(MENAFN -...

More pharma contracts this FY will certainly help:


(MENAFN - ProactiveInvestors - Australia) AtCor Medical Holdings (ASX: ACG) has reported a first half profit after tax for the 2013 financial year of A2.3 million driven by a rebound in pharmaceutical clinical trials.

The result is a substantial turnaround from the 900,000 loss the company reported in the first half of the 2012 financial year.

Continued execution of AtCor's core strategic initiatives resulted in first half sales of 5.4 million, up 43% on the previous corresponding period.

In the U.S., strong pharmaceutical and research sales led to a sales increase of 54%.

Despite continued economic challenges in southern Europe, sales volume was maintained even though the company's headcount reduced, and the region made positive contribution to earnings.

The launch of the SphygmoCor XCEL, which dramatically improves ease of use in clinical practice and in pharmaceutical research sites, contributed to sales growth of 18% in Australia and New Zealand.

Gross margin increased to 88% from 87.3% in the first half of the 2012 financial year.

AtCor has been focused on reducing costs and not investing in expenses or capacity ahead of demand.

In June 2012, further expense reductions were identified and implemented, which resulted in operating expenses being reduced by 21% to 3.5 million.

Cash flow was positive and a marked improvement over the first half of the 2012 financial year.

AtCor's cash balance at 31 December 2012 was 2.1 million compared to 1.1 million at 30 June 2012.

Net cash inflow for the first half of 2013 was 1 million compared to a net outflow of 0.7 million in the previous corresponding period.

Cash flow from operating activities, excluding the R&D tax credit of 700,000 received in December 2012, was positive for both quarters for the first half of 2013, and was 410,000 for the half year.

AtCor is particularly focused on growing its pharmaceutical clinical trials business.

The annual market for the pharmaceutical trials business is estimated in excess of US100 million.

While AtCor has established positions with key pharmaceutical companies in hypertension, chronic obstructive pulmonary disease and other therapeutic areas, large opportunities remain to add to AtCor's client base and pursue new drug compounds.

These include areas such as diabetes and cardio-oncology " the emerging focus on the cardiovascular effects of cancer drugs.

More pharmaceutical orders are expected in the second half of the 2013 financial year.