MAYFIELD HEIGHTS, Ohio — The delisted and rebranded DATATRAK International posted minimal losses even as it continues to see a decline in revenue — a vast improvement over a disastrous 2008, according to second-quarter financial earnings announced Monday.
The Cleveland-area company, which offers electronic clinical trials products, reported a net loss of $39,000 in its second quarter, the three months ending June 30. That compares to a loss of $16 million for the same period in 2008. For the last six months, DATATRAK has a net loss of $827,000 compared to an $18.23 million net loss for the same period in 2008.
DATATRAK’s new management team continues to make adjustments after its ruinous 2008. Earlier this month it announced it would deregister its common stock and also promoted a new product vision, called DATATRAK ONE, which it touts as a universal solution for e-clinical trials. The company thinks this solution is more attractive than other products it says require multiple technologies to comprehensively manage an e-clinical trial. Executives hope it will allow DATATRAK to nibble at niche market share not taken up by dominant players like Phase Forward and Medidata.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Revenue has declined at the company, according to Monday’s earnings report. It dropped 19 percent this second quarter compared to last year: $1.8 million compared to $2.25 million, respectively. Revenue is down 10 percent for the first six months of the year: $3.92 million this year compared to $4.34 million for the first six months of 2008.
Datatrak made adjustments to maximize savings related to its delisting, the company also announced on Monday. It switched accounting firms, moving from Ernst & Young to BDO Seidman. Because of the delisting, DATATRAK no longer has to complete forms including a 10-K and comply with requirements in Sarbanes-Oxley. “We believe relief from the various SEC reporting requirements and SOX requirements will provide substantial cost savings as we shift from a Big Four firm to BDO Seidman for our fiscal 2009 audit,” Chief Financial Officer Raymond J. Merk stated in a company press release.
