Sirtex Medical 1H profit climbs 70%

Sirtex Medical (ASX:SRX) lifted its 1H12 profit by 69.7% to $6.1 million, and has provided an upbeat outlook for the future.

The Sydney-based liver cancer treatment company recorded dose sales of its SIR-Spheres targeted radioactive microsphere treatments of 2,698 units, up 16.1% from 1H11.

Total revenue grew 8.1% to $36.8 million, with unit sales in the US and APAC regions both growing by over 25%. But sales in Europe fell 2.9%, due to the ongoing economic uncertainty in the region.

Sirtex has been pursuing a direct sales business model in APAC through a regional head office in Singapore since selecting new regional management in January. The company also has local distributors in Taiwan, Korea and India.

Sirtex is currently enrolling patients in clinical trials aimed at demonstrating the efficacy of SIR-Spheres.

Recruitment to a 450 patient study, to be conducted at sites across Australia, New Zealand, Europe, the Middle East and North America, passed 70% at the end of 1H11 and is on track to be complete by the end of 2012. A second 360 patient trial had reached 26% enrolment by the end of 1H11.

Earlier this month, Sirtex announced another phase III study, to be carried out at Assistance Publique - Hôpitaux de Paris, which will study the efficacy of the treatment in advanced hepatocellular carcinoma.

Sirtex plans to enrol 400 patients in this trial, which will involve around 40 specialist cancer centres throughout the nation.

The company spend $2.6 million on R&D to support new product development activities during the half-year, contributing to a 19.3% increase in total operating expenses to $23 million.

In its 1H report, the company revealed it had a “very positive outlook” for the future, asserting that it is positioned for long-term sustainable growth. Sirtex Medical (ASX:SRX) shares grew 1.2% in Wednesday's trading to $5.040 and opened at $5.05 this morning.