Medtox Scientific Inc. (MTOX, Financial) filed Quarterly Report for the period ended 2010-09-30.
Medtox Scientific Inc. has a market cap of $102.4 million; its shares were traded at around $11.73 with a P/E ratio of 51.1 and P/S ratio of 1.2. MTOX is in the portfolios of Bill Frels of Mairs & Power Inc. , Jim Simons of Renaissance Technologies LLC, John Rogers of ARIEL CAPITAL MANAGEMENT LLC.
Revenues in our clinical and other laboratory services increased 28% to $7.9 million and 32% to $22.4 million for the three and nine month periods ended September 30, 2010, respectively. The improvement in both periods was due to continued strong growth generated by our expanded clinical laboratory capabilities and diversification initiatives undertaken in 2008.
Revenues in clinical trial services increased 18% to $2.4 million for the three months ended September 30, 2010 and reflects the return to a more normalized level of activity after the slow-down of projects experienced in the first quarter of 2010. For the nine months ended September 30, 2010, revenues decreased 12% to $5.2 million due to a slow-down of projects in the first quarter of 2010. Revenues from clinical trial services can fluctuate from quarter-to-quarter based on the project nature, size, and the actual timing of clinical trials.
Sales of POCT products, which consist of the PROFILE®-II, PROFILE®-II A, PROFILE-II ER®, PROFILE®-III ER, PROFILE®-III, PROFILE®-III A, PROFILE®-IV, PROFILE®-V, VERDICT®-II and SURE-SCREEN® on-site test kits and other ancillary products for the detection of abused substances, increased 13% to $4.7 million and 8% to $13.5 million for the three and nine months ended September 30, 2010, respectively. The increase in both periods was primarily due to strong sales in the workplace drugs-of-abuse market with our PROFILE®-II A and PROFILE®-III A products, and increased sales of PROFILE®-V sold into the hospital market with our MEDTOXScan® Reader. Overall, pricing for our POCT devices was slightly lower than the prior year periods.
Sales of contract manufacturing services decreased 27% to $0.3 million and increased 14% to $1.2 million for the three and nine months ended September 30, 2010, respectively. After an analysis of this product category in 2007, we concluded that it had diminishing opportunities for us, and we are phasing out contract manufacturing services. The increase in the nine month period ended September 30, 2010 was due to additional revenue from one of our clients whose contract expired on June 30, 2010. Based on the expected increased sales of higher-margin POCT products, we do not anticipate a significant impact on our results of operations from exiting this business.
Sales of other diagnostic products increased $73,000 to $170,000 for the three months ended September 30, 2010 and increased $186,000 to $483,000 for the nine months ended September 30, 2010 due to the sale of the new NexScreen 12 panel diagnostic product.
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Medtox Scientific Inc. has a market cap of $102.4 million; its shares were traded at around $11.73 with a P/E ratio of 51.1 and P/S ratio of 1.2. MTOX is in the portfolios of Bill Frels of Mairs & Power Inc. , Jim Simons of Renaissance Technologies LLC, John Rogers of ARIEL CAPITAL MANAGEMENT LLC.
Highlight of Business Operations:
Our Laboratory Services segment includes revenues from workplace drugs-of-abuse testing, clinical and other laboratory services and clinical trial services. Our revenues from drugs-of-abuse testing increased 10% to $10.4 million and 7% to $29.3 million for the three and nine month periods ended September 30, 2010, respectively. The increase in both periods was primarily a result of an increase in new account revenues. Pricing for our workplace drugs-of-abuse testing services tends to be fairly stable overall; however, the average price per testing specimen can vary slightly from quarter-to-quarter. Test price can vary by client based on the percentage of samples that test positive for drugs-of-abuse and the average number of samples per shipment.Revenues in our clinical and other laboratory services increased 28% to $7.9 million and 32% to $22.4 million for the three and nine month periods ended September 30, 2010, respectively. The improvement in both periods was due to continued strong growth generated by our expanded clinical laboratory capabilities and diversification initiatives undertaken in 2008.
Revenues in clinical trial services increased 18% to $2.4 million for the three months ended September 30, 2010 and reflects the return to a more normalized level of activity after the slow-down of projects experienced in the first quarter of 2010. For the nine months ended September 30, 2010, revenues decreased 12% to $5.2 million due to a slow-down of projects in the first quarter of 2010. Revenues from clinical trial services can fluctuate from quarter-to-quarter based on the project nature, size, and the actual timing of clinical trials.
Sales of POCT products, which consist of the PROFILE®-II, PROFILE®-II A, PROFILE-II ER®, PROFILE®-III ER, PROFILE®-III, PROFILE®-III A, PROFILE®-IV, PROFILE®-V, VERDICT®-II and SURE-SCREEN® on-site test kits and other ancillary products for the detection of abused substances, increased 13% to $4.7 million and 8% to $13.5 million for the three and nine months ended September 30, 2010, respectively. The increase in both periods was primarily due to strong sales in the workplace drugs-of-abuse market with our PROFILE®-II A and PROFILE®-III A products, and increased sales of PROFILE®-V sold into the hospital market with our MEDTOXScan® Reader. Overall, pricing for our POCT devices was slightly lower than the prior year periods.
Sales of contract manufacturing services decreased 27% to $0.3 million and increased 14% to $1.2 million for the three and nine months ended September 30, 2010, respectively. After an analysis of this product category in 2007, we concluded that it had diminishing opportunities for us, and we are phasing out contract manufacturing services. The increase in the nine month period ended September 30, 2010 was due to additional revenue from one of our clients whose contract expired on June 30, 2010. Based on the expected increased sales of higher-margin POCT products, we do not anticipate a significant impact on our results of operations from exiting this business.
Sales of other diagnostic products increased $73,000 to $170,000 for the three months ended September 30, 2010 and increased $186,000 to $483,000 for the nine months ended September 30, 2010 due to the sale of the new NexScreen 12 panel diagnostic product.
Read the The complete Report
