Chromium-based supplement maker Nutrition 21 reported revenues of $3.8 million (€3.87m) for the fourth quarter and fiscal year ended 30 June 2002 compared to $5.3 million for the comparable period a year ago. Net loss for the quarter was $6.7 million, which included an impairment charge of $7.1 million, said the company.
Net income a year ago was $0.7 million. Without the impairment charge, the company claims it would have reported fourth quarter net income of $30,000.
For the year to 30 June 2002, Nutrition 21 reported revenues of $14.7 million, compared to $23.3 million, which included $2.4 million of licensing fee income, in the same period a year ago.
Net loss, including the impairment charge of $7.1 million, was $6.0 million, compared to net income of $1.1 million for the prior year.
Gail Montgomery, president and CEO of Nutrition 21, said that in the long term the company was seeking to build a healthcare division focused on branded therapeutic supplements for disease-specific markets.
"Our base ingredients business continues to show signs of recovery, as reflected in a 27 per cent improvement in sales compared to the third quarter of 2002. Sales of the Lite Bites brand through the QVC home shopping network are benefiting from the introduction of several new products this year. Our exclusivity obligations to QVC expired earlier this year, and we plan to expand the Lite Bites brand into new channels in FY 2003," she said.
She added that the business would concentrate research spending on projects that could optimise the commercial value of the chromium patent portfolio.
"Milestones reached in FY 2002 include the affirmation of the safety of chromium picolinate; mapping the cellular mechanisms activated by chromium; and in- vitro, pre-clinical and pilot clinical studies that support our decision to participate in the $5.8 billion US market for treating diabetes with drugs and supplements. We have hired management talent to lead these new initiatives, and have built key alliances with researchers and healthcare institutions."
The company is planning to introduce its first branded therapeutic product next year after completing further pharmaceutical quality and pharmacoeconomic trials.