The operating loss was $6.6m compared to operating income of $3.9m in the same period of 2009. First quarter adjusted EBITDA was $9.3m, a decrease of $12.8m in the comparable period last year.
Revenues from commercial operations increased by 8.8% to $128.1m from $117.7m compared to the same period of 2009. North American commercial revenues increased by $1.2m from the prior period, or 2.2%. Revenues from the European operations increased by $9.2m from the prior period.
Revenues from the business segment, Pharmaceutical Development Services (PDS) decreased by 9.5%, or $2.8m, to $26.7m from $29.5m. The decline was primarily due to lower overall demand for development services due to general market conditions.
Wes Wheeler, chief executive officer and president of Patheon, said: “Our commercial operations performed reasonably well despite several disappointing supplier-related delays. However, PDS revenue was somewhat lower as we continued to see soft market demand, which appears to be consistent with the rest of the industry. New commercial business has been slow in coming due primarily to pending post-merger decision making at large pharmaceutical companies.”
“However, since the beginning of calendar 2010, we have seen an encouraging increase in new sales activity as improved funding has become available for development stage companies. We have also begun active discussions in connection with the pending rationalization programs which will flow from the 2009 pharmaceutical industry merger activity.”