Drug developer Cangene Corp. reported a big jump in profits for the latest quarter as the company kept sales costs in line while revenues rose modestly.
Winnipeg-based Cangene said late Monday it earned $4.4-million or seven cents a share for the three months ended Oct. 31. That compared with a profit of $591,000 or one cent a share for the same period last year.
Revenue rose 2.7 per cent to $24.8-million from $24.1-million. However, the cost of sales fell to $10.7-million from $16.5-million.
"The solid financial results for the first quarter have been followed by several key developments, including publication of one of Cangene's most innovative research efforts, changes to the composition of our board and the announcement of an $81-million bought-deal common share offering designed to significantly increase our public float, improve liquidity and broaden our shareholder base," said John Langstaff, president and CEO of Cangene.
"We believe strongly that these developments position the Company for continued future growth in shareholder value."
Cangene is one of Canada's largest biotech companies, with research and development in Mississauga, Ont., and Winnipeg and four approved drug products and two under development.
The company also provides contract research and manufacturing services through it wholly owned Chesapeake Biological Laboratories Inc. and has drug manufacturing plants in Winnipeg and Baltimore.
Cangene's financial results were released after the close of stock trading Monday. Earlier, the company's shares fell 11 cents to $7.75 on the TSX on a volume of more than 111,000 shares.