Thursday, Aug. 21, 2008

IsoRay going strong, officials say

By Pratik Joshi, Herald staff writer

IsoRay officials say the company is back on track.

Sales revenue increased to about $7.2 million in fiscal 2008, an increase of about 25 percent over fiscal 2007. Net loss declined 11 percent over the same period, the Richland-based company announced Wednesday.

IsoRay manufactures medical isotopes -- Cesium-131 brachytherapy seeds, mostly used to treat prostate cancer. It also saw about a 7 percent gain in sales revenue in the fourth quarter ending June 30, at about $1.76 million. In the same period last year, sales were about $1.65 million.

The gains are a result of a new focus on the core business and labor and production efficiencies, said Dwight Babcock, IsoRay chairman and chief executive officer, during a conference call.

"I'm so proud of the entire staff," he said.

The company is in the process of hiring additional sales staff to improve its top line growth, Babcock said.

IsoRay supplied its signature product Proxcelan, the brand name for Cesium-131 brachytherapy seeds, to 99 medical centers in the 2008 fiscal year, up from 79 in the 2007 fiscal year.

Procuring orders from physicians is a long process, Babcock said. Doctors want to wait until they begin to see the benefits of Cesium-131 brachytherapy seeds, he said.

Reports of new clinical trials will help doctors learn more about the seeds. The company also conducted special classes to train physicians about its product.

Jonathan Hunt, chief financial officer, said he thinks an increased commission-based compensation for the sale staff will help expand IsoRay's reach among medical centers across the nation.

IsoRay also plans to distribute its product in Canada and Russia, Babcock said. The company recently received certification from the British Standards Institution. Also, the company successfully passed its first federal Food and Drug Administration inspection, which showed that IsoRay adheres to good manufacturing practices.

In June, the board authorized the repurchase of up to one million shares of the company's common stock. The company has $4.8 million in cash and $3.7 million in short term investments, Hunt said.

"We don't intend to raise any money. Our goal is increase shareholder value," he said.