manufacturing partners for its MOLY-FILL(TM) Technetium Generator.
During the fourth quarter of 2007, the Company completed a field
test evaluation of a prototype version of this product and the
results of the evaluation will contribute to the continuing product
Outlook and Guidance Intentions
Guidance targets for 2007, which were revaluated during the course of
2007 were not achieved as a result of the following factors:
- Subsequent to the second quarter of 2007, an ongoing assessment of
the Company's cost structure began with the appointment of Jean-
Pierre Robert as President of DSPI, thereby responsible for the
Company's operating units. In addition, a parallel review of the
Company's corporate overhead structure was initiated to reduce
overhead costs and eliminate redundancies Company wide. This is
related to the higher cost burden associated with these costs as a
result of the stronger Canadian dollar, the upgrade of our SAP
systems and overall plans to achieve greater efficiencies. During
the course of 2007, the Company took severance cost provisions of
$1.6 million in contract manufacturing and $0.7 million in its
corporate segments as a result, including the decision to close its
Mississauga office location in early 2008.
- During 2007, the strengthening of the Canadian dollar from $CDN1.165
per U.S. dollar as at December 31, 2006 to $CDN0.991 per U.S. dollar
as at December 31, 2007 has resulted in foreign exchange losses for
all of 2007 of approximately 3 cents per share or $1.7 million. This
foreign exchange loss resulted from the revaluation of U.S.
dollar-denominated net monetary assets.
|SOURCE DRAXIS Health Inc.|
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