LONDON -(Dow Jones)- Shares in U.K. life sciences company Celsis International PLC (LSE:CEL) (CEL.LN) rose Wednesday after it reported a big rise in full-year profit as pharmaceutical firms bought more of its products to speed up drug development.
Cambridge-based Celsis (LSE:CEL) said revenue for the year ended March 31 rose 18.2% to $56.1 million from $47.4 million a year earlier.
Net profit increased to $6.7 million, or 30.53 cents a share, from $5.9 million, or 26.81 cents a share.
Celsis Chief Executive Officer Jay LeCoque told Dow Jones Newswires the growth was driven by strong sales at its rapid detection and In-Vitro Technologies units.
Revenue at rapid detection, which sells a range of kits that can spot microbial contamination in drugs and consumer products quicker than traditional methods, rose 22.9% to $21.7 million as more kits were sold to more companies in more countries, said LeCoque.
Sales at the in-vitro unit, which provides drug companies with a test that can quickly determine what effects drug candidates will have on the liver, increased 15% to $15.4 million. The business was acquired in 2006 when Celsis (LSE:CEL) bought In Vitro Technologies Inc. for $30 million.
LeCoque said the pharmaceutical industry is under "unprecedented pressure" to increase productivity and get new drugs to market.
The number of drugs in development has expanded significantly, he said, and that means it's important to move medicines through the early stages of testing as quickly as possible to save cash.
Celsis's (LSE:CEL) products are designed to save its customers, who include Pfizer Inc. (NYSE:PFE) (PFE), Procter & Gamble Co. (NYSE:PG) (PG) and Unilever NV (NYSE:UN) (UN), "time and money", LeCoque said.
However, Celsis's (LSE:CEL) analytical services business, which provides lab services to drug makers, had a tougher year. Revenue declined 7.1% to $19 million, although CEO LeCoque said 2006 was a strong comparator year, as revenue increased 26% at this unit. He said he's not "unduly worried" and anticipates it returning to positive growth over the next 12 months.
CEO LeCoque said a new RNA-based microbial detection kit, which can not only identify when a product is contaminated but what bug is causing the contamination, will boost sales next year.
It's currently in tests with some of Celsis's (LSE:CEL) major clients and LeCoque said he's confident Celsis (LSE:CEL) can sell it to most of its established customer base.
He added the firm will also be scrutinizing potential acquisitions during the coming year. Celsis (LSE:CEL) is looking at companies with testing products that will fit into its rapid detection or in-vitro businesses, he said.
Shares in Celsis (LSE:CEL) , which have lost 37% over the past 12 months, advanced 11 pence or 7.6% at 0900 GMT to 156 pence, in a lower London market. They later eased back to 151 pence at 1016 GMT.
Company Web site: http://www.celsis.com
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@ dowjones.com
(END) Dow Jones Newswires 06-18-08 0633 Copyright (c) 2008 Dow Jones & Company, Inc.
