GTC Losses Continue
GTC Biotherapeutics, the Framingham-based drug manufacturer, moved closer to profitability in the second quarter, but still registered a $300,000 loss on $4.9 million in revenues.
The company, which produces drugs from genetically modified animal proteins, said it has about $6.2 million in cash on hand thanks to a $7 million loan in February from major investor LFB Biotechnologies, a French pharmaceutical company. The company said that is enough cash to support operations until the middle of the fourth quarter, exclusive of any new revenues for the company.
The company's $300,000 operating loss compared to a $10.8 million loss during the same quarter last year, and an improvement from the $7.7 million loss the company reported for the previous quarter.
Revenues also increased from about $300,000 in the previous quarter to $4.9 million in the most recent quarter. That's up from $700,000 in revenues during the same quarter last year. $4.4 million of the revenue in the most recent quarter is due to a favorable award in an arbitration proceeding with previous drug-commercialization partner LEO Pharma of Denmark.
GTC president and CEO William Heiden noted in a press release that the company is aiming to increase profitability of its only federally approved drug, ATryn, in the coming months. The company announced earlier this month it would take over full commercialization rights of that drug from Lundbeck Inc. of Chicago.
The company also hopes to begin trials for another drug, named Factor VIIA, which is made using genetically modified rabbits. Heiden said the company hopes to expand its line of "bio-superior" drugs, or generic versions of drugs already on the market, as well.
The company stopped trading on the Nasdaq in March but is still trading on the Over-the-Counter Bulletin Board, an electronic market. GTC said recent cutbacks, including firing 50 employees and the company's former CEO and CFO, will save GTC between $13 and $15 million annually.
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