Penwest experiences a 'transforming' year

Drug delivery company Penwest Pharmaceuticals has reported total revenues of US$42.0m (€39.2m) for the 2002 financial year and a net loss of $17.1m (€16m). This compares with 2001 revenues of $40.0m (€37.4m) and a net loss of $16.0m (€15m).

The company said the increase in the loss is primarily attributable to a rise in r&d spending - up from $17m to $17.6m (€16.4m). This increase was due to higher manufacturing expenses associated with the scaling up of early stage products, a small increase in the development spending on oxymorphone ER, and an increase in compensation due to additional headcount in r&d.

Other factors included higher selling, general and administrative costs, including marketing costs related to oxymorphone ER, higher costs of business insurance, and professional fees while contemplating various business strategies surrounding the sale of the excipient business. The increase in revenues is primarily due to the higher sales of excipient products.

Tod R. Hamachek, Penwest's chairman and ceo, said: 'This has been a transforming year for Penwest, in which we solidified the strategic focus that has been in place for the company. First, we completed the sale of our excipient business and can now channel all of our resources into developing innovative drug candi-dates utilising our drug delivery technologies. Second, the FDA acceptance of the NDA for oxymorphone ER represents an important milestone for this drug and for Penwest.

'Third, we have continued to advance a number of our other drug candidates in the product pipeline. This progress bodes well for Penwest's future.'

However, in line with Penwest's strategy of focus-ing on drug development, Penwest has exercised an option in its contract with Endo Pharmaceuticals not to participate in funding additional costs associated with oxymorphone ER. Rather, it will use those funds for the development of other drug development projects in its own pipeline, Hamachek explained.