As the weather gets bleaker in Minnesota, the Minneapolis Star Tribune is reporting some bleak news about SurModics ($SRDX), an about Eden Prairie-based drug-delivery company. Share price does not tell the whole story about a biotech company, but its stock tumbled 31 percent Thursday, a day after the the company reported results that fell well short of expectations.
The company is blaming the bad economy and the decision to go further into pharma during a time when pharmaceutical R&D is cutting back, according to the article.
The paper reports that SurModics' revenues plunged 19 percent from a year earlier to $15.5 million in the three months ending Sept. 30. The company reported a net loss of $21.7 million, compared with a net income of $2.7 million during the fourth quarter in 2009.
"It's probably a combination of bad choices, bad economy and bad luck," analyst Daniel Owczarski told the paper.
- read the article in the Star Tribune