Loss of Contract Research Blamed for Syntro Losses

Citing the loss of contract research revenues, Syntro Corp. reported a bigger net loss and lower revenues for the second quarter ended March 31.

A biotechnology company that is developing veterinary vaccines, Syntro said its net loss was $1,253,672 for the quarter, contrasted with a loss of $334,487 over the comparable three months last year. Revenues declined to $734,495 from the $1,034,678 reported for the second quarter last year.

Syntro spokesman Jack Fitzpatrick said the poor performance was due to a decrease in contract research payments from PruTech I and II, two research and development partnerships organized by Prudential Bache Securities. The partnerships have funded Syntro’s research on 15 products in exchange for royalties on those that Syntro brings to market.

Syntro’s funding arrangement with the PruTech partnerships, which over the last three fiscal years have contributed $9 million, or two thirds of Syntro revenues, runs out this year, Fitzpatrick said.

Syntro is on schedule to introduce its first product, a vaccine for pseudorabies in swine, in July, when U.S. Department of Agriculture approval of the product is expected, Fitzpatrick said. At Syntro’s annual meeting in February, company officials said they expect the new vaccine to capture one-third of the $12-million annual market for pseudorabies vaccines in the first year that it is available.

Also at the annual meeting, Syntro Chairman Stephen O’Neil said fiscal 1987 revenues may be as much as one-third less than the $5.1 million that Syntro reported for 1986 because of the loss of PruTech funds. O’Neil also said that this year’s net loss would exceed the $1.1-million loss reported for 1986.

For its first two quarters, Syntro’s losses total $1,780,778, contrasted with a loss of $727,941 reported over the same six months last year. Year-to-date revenues are $1,957,544, down from $2,126,897 a year ago.