Warnex sees Q2 growth; Indian business expansion
Quarterly revenue was $6.4m (€5m), up 18 per cent on the year-earlier period, helping Warnex to reverse the $346,660 loss it recorded last year and achieve net earnings of $11,295.
CEO Mark Busgang told Ourtsourcing Pharma that the second-quarter gains were driven an increase in sales for both its contract bioanalytical and medical testing businesses.
“Bioanalytical revenues are growing this year due, we hope, to the end of the recession. Medical is more influenced by regular organic growth especially higher market penetration of the PCA3 diagnostic test.”
In contrast, revenue from analytical services was flat due, according to Busgang, to “some shortfall at some clients, however business developments are ongoing and we expect to resume solid growth this year and into 2011.”
Warnex in India
Busgang also set out Wanex’s wider development plans, highlighting India, where it generates 15 to 20 per cent of its bioanalytical revenue and where it recently hired a new sales representative, as a key growth market.
He predicted that, although Warnex’ already does business with a number of pharmaceutical companies in India “with an increased presence there [we] expect to see more opportunities.”
The new sales presences follows a number of activities Warnex has undertaken in India this year, which began with Busgang’s participation in a trade mission led by Quebec Premier Jean Charest.
The delegation, in February, was intended to forge links between Canadian and Indian companies and brought together 130 participants from the industry, academia and research sectors.
At the time Busgang told BioTuesday.ca that meeting with new potential clients for the first time “raised the profile of Warnex and opened my eyes to the opportunities with these companies.
He also told the paper that: “Over the next three years, we should double or triple our revenues from India.”
And, while it is too early to say how much pharmaceutical industry business Warnex’ Indian efforts will generate; early indications suggest the activity is already being noticed by other sectors.
In July, for example, India’s Central Bureau of Investigation (CBI) approached Warnex to seek mitochondrial DNA testing services for forensic casework.
