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ThermoGenesis Reports Second Quarter 2011 Results; Increased Presence in China
Date:2/10/2011

e 40% compared to 34% in 2010. This improvement is due to lower contract manufacturing and overhead costs. The Company expects this trend to continue as its sales of disposables increase and further manufacturing efficiencies and scale are achieved.  We expect gross margins to migrate to the 55 to 60 percent range over the long term.

In a separate press release today, the Company announced a product purchase agreement with Beike Biotechnology Co., Ltd (“Beike”), a leading biotechnology company in China that provides stem cell therapies and owns cord blood processing and storage facilities under which ThermoGenesis will supply Beike its AXP® AutoXpress® (“AXP”) and BioArchive® Systems.

“Our revenues in the second quarter benefited from growth in our bone marrow business, which was offset in part by softness in U.S. and European cord blood collections due to the economic environment. In total, while sales were relatively flat from last year’s second quarter, our operating loss dropped significantly.  As a result of our ability to increase gross margins and manage operating expenses, this was the third consecutive quarter in which we have substantially reduced our net loss over the prior year quarter. Year-to-date, we have generated a $3.1 million year-over-year reduction in our net loss,” said J. Melville Engle, Chairman and Chief Executive Officer.

“We continue to increase our presence in international markets, as evidenced by our new agreement with Beike in China, announced today. We are also having encouraging discussions with potential distribution and development partners as we accelerate our other business development initiatives,” Engle added.

“The major story for us in the second quarter is our exciting development in China. We believe the Chinese cord blood market could equal or exceed the size of the U.S. market in the next 2-3 years. We also beli
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SOURCE ThermoGenesis Corp.
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