pSivida Corp. (NSDQ:PSDV) sailed into the black with a 388 percent increase in revenues during the fourth quarter of fiscal 2010.
The Watertown, Mass.-based ophthalmic drug-delivery device maker posted net earnings of $13.1 million, or 68 cents per diluted share, on sales of $15.7 million during the three months ended June 30. That compares with a net loss of $534,000, or 3 cents per diluted share, on sales of $3.2 million during the same period last year.
For the full year, the company was $8.8 million in the black, with earnings of 46 cents per diluted share, on revenue of $23.1 million, compared with a loss of $2.5 million, or 14 cents per diluted share, on $12.1 million in revenue.
pSivida’s positive quarterly results were due entirely to the repayment of a $15 million loan and $225,000 in interest by pharmaceutical partner Alimera Sciences Inc. (NSDQ:ALIM) after that company’s $72 million IPO in April. The proceeds of payment and "amortization of Alimera deferred revenue in both fiscal year 2010 and 2009 accounted for substantially all revenues for the fiscal years and the fourth quarters," according to pSivida.
pSivida and Alpharetta, Ga.-based Alimera won priority review status in August for their Iluvien drug/device combination designed to treat diabetic macular degeneration. If the product is approved by the Food & Drug Administration, pSividia is due a $25 million milestone payment from Alimera. The companies are also seeking European approval for Iluvien. If it makes it to market, pSivida will collect 20 percent of the net profits.
"Beyond Iluvien, product development will continue to be our primary focus, as we shift our emphasis to the development of products using new generations of our technology systems," CEO Paul Ashton said in prepared remarks.
The Q4 sales helped rescue the company from a year marked by ups and downs. During the third quarter, pSivida saw a $2.7 million net loss as revenues shrank following a contract expiration in December. A 17 percent, or $2.8 million, drop in operating expenses also contributed to the company’s positive results for the fiscal year.
