SeraCare posts Q4 loss after bioservice revenue halves

21-Nov-2011 - Last updated on 21-Nov-2011 at 08:54 GMT

SeraCare slipped into the red in the fourth quarter as loss of government business halved bioservice revenues.

A 46 per cent year-on-year fall in fourth quarter bioservice revenues contributed to SeraCare ending 2011 with a loss. Full year bioservice sales dropped by one-third to $11.3m (€8.4m) but SeraCare has a recovery strategy for 2012.

“We do believe we have stabilised the revenue base for our bioservices business. Moving into fiscal 2012 we will focus on building the commercial side of our bioservices business which delivers higher gross margins”, Greg Gould, interim CEO of SeraCare, said in a conference call with investors.

SeraCare may invest to return to growth. Gould said SeraCare has $18.1m in cash, minimal debt and is willing to use its funds to support future growth. This is one of five reasons SeraCare is optimistic about its future.

Joseph Nemmers, chairman of the boardat SeraCare, said: “We believe 2012 will be recognised as the year when SeraCare established itself as a growth oriented organisation.” Growth will be driven by a revamped sales team, one-third of which is new to the company, and addition of new clients.

Strategic alternatives

Fiscal 2012 could also be the year SeraCare changes ownership. In August Gould told Outsourcing-Pharma SeraCare was looking into strategic alternatives and this “could mean a sale of the whole company, or it could mean a partial sale, or it could mean something else entirely”.

SeraCare has advanced talks since then. “While the board’s pleased with progress we’re not ready to make public the details of this strategic process at this time. When we have something material to report we’ll let you know promptly”, Nemmers said.