BioSyent Keeps Momentum Going with Solid Q2 Earnings

BioSyent (TSXV:RX) today announced Q2 results that are indicative of the revenue and earnings momentum investors have to come to expect from this emerging specialty pharma company based in Ontario. As I have written previously in Cantech, I believe BioSyent is carving a path that is very similar to another Canadian specialty pharma success story – Paladin Labs.

The numbers reported by BioSyent are resoundingly positive, with double-digit growth rates, versus the previous quarter, across the top and bottom lines. The company reported quarterly net income of $889,000, or 6 cents per fully diluted share, on $$3.07-million of sales. For the first half of 2014, the company has earned $1.4 million after taxes, or 10 cents per fully diluted share, on total sales of $5.5 million. When compared to the first half of 2013, the 2014 results represent 66% top-line growth and 84% bottom-line growth.

At its current $120 million market cap, BioSyent investors are banking on continued growth for the coming quarters. Candidly, why shouldn’t they? Over the past three years the company has a 68% compound annual growth rate for its top-line. Even if the pace of growth slows for their existing portfolio of pharmaceutical products in Canada, they have a series of new products ready to be launched.

The company recently received Health Canada approval for an urgent care product that they aim to launch sometime in the next 3-6 months. They have also guided that they will launch a new gastrointestinal product sometime before year-end. Combine these two, soon to be launched, products with the company’s June 2014 launch of a new women’s health product, RepaGyn, and it appear that BioSyent has the right formula of existing and new products to maintain its financial momentum and investor interest.