QLT Inc. (TSX:QLT) has posted a net loss of US$110 million in fiscal 2007 as sales of its Visudyne eye drug continue to decline.
Revenue dropped 26.9% to US$127.9 million compared with US$175 million in 2006. While improved sales of Eligard prostate-cancer treatment helped offset losses associated with Visudyne, legal expenses continued to batter the company's bottom line.
QLT listed US$110.2 million in litigation charges related to its patent dispute with Massachusetts Eye and Ear Infirmary. In 2006, QLT listed US$112.6 million in legal costs in connection with its settlement with TAP Pharmaceutical Products Inc. Research and development expenses dropped to US$46.4 million from US$56.4 million, and general and administration costs were cut to US$27.4 million from US$42.2 million.
QLT also recently cut its workforce by 45%.
The company posted a net loss of US$101.6 million in 2006.
The company expects Visudyne sales in 2008 to be valued at between $145 million and $160 million, with its share of the profits at about 20%. Eligard sales are forecast to exceed $200 million.
QLT expects Visudyne sales to bottom out in 2008 and rebound thanks to study results on combining Visudyne with other drugs expected in late 2008 and in 2009.