Hybritech Posts Profit in Year; First in Its History

Hybritech Inc., whose products have been touted as potential cancer-treatment breakthroughs, on Wednesday reported a financial breakthrough--the first annual profit in its six-year history.

Net income for the year ended last Dec. 31 was $1.1 million, compared to a $500,000 loss the year before. Revenue for the year reached $33.9 million, more than double the previous year’s $16 million.

About half of the earnings resulted from a net operating tax-loss carry-forward, according to Chief Financial Officer Timothy J. Wollaeger.

The company, which makes and markets monoclonal antibodies, is in a “good position” because of new products that have been accepted in the marketplace, Wollaeger said.

The new products, which include a cancer diagnostic kit introduced last December and a pregnancy test kit introduced last October, favorably affected fourth-quarter results, he added.

Contract revenue increased nearly threefold to $16.3 million.

The increase was the result of development and clinical trials of cancer diagnosis, imaging and therapy technology--part of a $70-million research and development limited partnership that was offered and sold last year.

Gross profit margins of 52% are within industry standards of between 50% and 65% but below the company’s 1985 goal of 60%, Wollaeger said.