Bentley posts strong second quarter

Exeter-based Bentley Pharmaceuticals recorded growing revenues for the quarter ended June 30.

Consolidated revenues for the second quarter were nearly $29 million, up 17 percent from $24.7 million. Consolidated net income was flat for the second quarter of 2006 at $2.6 million.

The quarter’s gains were seen in Bentley’s specialty generics unit, which posted an income of $4.3 million on revenues of $26.6 million, up 13 percent from an income of $3.2 million on revenues of $23.5 million in the same quarter in the previous year.

The company’s drug delivery unit, however, widened its losses for the quarter with an income loss of $1.6 million on positive revenues of $2.4 million, down from an income loss of $574,000 on positive revenues of $1.3 million a year ago.

While revenue losses in drug delivery for the second quarter were absorbed in the numbers for the first six months of 2006, at nearly $4 million, up from $2.1 million in the first half of 2006, net income from the unit widened over the period with a loss of $4.5 million up from a loss of $1.4 million in the first half of 2005.

Consolidated results were split for the first two quarters of 2006 with revenues of $57.3 million, up from $49 million in 2005. Net income for the period was $3.8 million, down from $4.8 million in the same period a year ago.

The company said operating losses generated by the drug delivery segment were primarily due to increased investment in research and development programs as well as increased general and administrative expenses resulting from higher legal costs, outside services to support the company’s growth, costs of additional employees and the recording of share-based compensation expense from the required adoption of a new accounting principle in January 2006, which was not required to be recorded in previous periods.

John Sedor, president of Bentley, said, “I am extremely pleased with the strength of our continued quarter to quarter growth, both in revenue and to our bottom line. We continue to look at increasing market share through the expansion of our generics business both in and outside of Spain. In addition, our drug delivery development efforts are intensifying as we make plans to continue global Phase II clinical studies for intranasal insulin. We are now operating at a brisk but measured pace along the path we have set for the company. We are focused on delivering sustained profitability and growth in our generics business, building long-term value through the development of differentiated generics, and expanding the commercial applications of our proprietary drug delivery technology.” — CINDY KIBBE

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