Sirtex posts strong 1H results

Sirtex Medical (ASX:SRX) continues to be one of the few Australian biotechnology companies to deliver good news in terms of earnings, posting a $3.6 million profit for the first half of the 2010-2011 financial year.

The company, which produces SIR-Spheres, microspheres for the treatment of liver cancer, saw revenues increase by 9.1% to $34 million, in spite of the Australian dollar appreciating by 12% against the US dollar and 23% against the Euro compared to the same period last year.

With revenues coming primarily from the US and Europe, the Sirtex announced that currency movements reduced revenue by $2.3 million, or 6.7%.

Increased cost of goods due to price increases from ANSTO Radiopharmaceuticals and Industrials (ARI) also contributed to reduced profits.

Sales of SIR-Spheres was up in all regions, with European dose sales of 760 units up 29.5%. Sales in the US of 1,363 units rose 12.3% with Asia Pacific 202 unit sales up 3.6%, compared to the same period last year.

Sirtex's also announced that its new Singapore office is now fully operational, with manufacturing equipment installed and awaiting regulatory approval before commencing production, which is expected to begin in late June.

The company's cash balance was up from $34.2 million in December 2009 to $41.2 million.

Sirtex stock (ASX:SRX) lost 10c in morning trading to $5.62.