demand. The lower than expected volumes from Genzyme have offset the
positive impact of increased volumes related to new business
activities taking place during 2007 within our contract
manufacturing division. We believe that the trend is for Hectorol(R)
volumes to ultimately be phased out during 2009. We also anticipate
quarterly fluctuations in volume which may not be predictable.
- The contract manufacturing segment began to implement procedures,
including organizational changes, to reduce production delays that
have in the past resulted in shipments not being released in a
timely manner impacting quarterly results for most of 2007.
While short-term financial performance for 2007 was below the Company's expectations, the Company did achieve significant key milestones consistent with the sources of future growth for the Company in future years.
Guidance for Future Years
The Company expects progressively improving financial results during
2008 compared to 2007 as a result of increased demand through new business
opportunities, product introductions and additional contracts. This is
expected to result in continuing year-over-year growth in revenues,
operating income, and cash flows going forward, starting from a base in
2008. Net earnings per share for 2008 are expected to increase
significantly over 2007. However, the extent to which the Company can
reasonably predict the financial performance for 2008 is limited due to
variables outside of the control of the Company. Accordingly, the Company
does not plan to provide specific quantitative guidance given the
anticipated period of expansion and significant growth that is expected to
be accompanied by periods of increased forecast variability due to several
factors, including the following:
- The timing and ramping up of commercial production of non-sterile
|SOURCE DRAXIS Health Inc.|
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