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Carrington Reports Second Quarter 2007 Results
Date:8/19/2007

y back into our core business, including overhead reductions and the shedding of unprofitable products, are beginning to take hold," said Carlton E. Turner, Ph.D., Carrington's CEO. "Order flow is increasing and margins are improving as we expand plant utilization with more profitable products. We feel we are back on track and the coming quarters look very promising, particularly in the areas of OTC drug lines and devices."

Dr. Turner added that while manufacturing and regulatory requirements are more sophisticated in the device and OTC drug categories, gross margins are much greater in these areas and better enable the Company to leverage its core manufacturing competencies.

Commenting on DelSite, Dr. Turner noted increasing interest being shown by commercial companies and government health agencies in the drug delivery subsidiary's nasal and injectible formulation technologies. Subsequent to the quarter's end, DelSite received test supplies of a government-approved H5N1 bird flu antigen and is now preparing to initiate toxicology studies for a nasally administered vaccine. If successful, a human safety trial will start by year-end.

Other activities that evidence the continuing successful development of DelSite's drug and vaccine delivery technologies include a CRADA with the National Cancer Institute (NCI) for testing GelVac(TM) nasal powder formulation for a nasal Human Papillomavirus (HPV) vaccine.

Additional DelSite achievements during the current year have included pre-licensing and evaluation agreements with a number of companies, including Nastech Pharmaceuticals for intranasal delivery of peptide and protein therapeutics; the International Vaccine Institute (IVI) for sublingual delivery of new and existing vaccines to be used in immunization programs in needy areas of the developing world; AriaVax, Inc. for development of an investigational vaccine against HIV infection; EndoBiologics, Inc. for development of a vaccine against bacill
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SOURCE Carrington Laboratories, Inc.

Copyright©2007 PR Newswire.

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