BUF logoMINRAD International, Inc. (AMEX:BUF, BUF message board), an interventional pain management company, saw their stock recover nearly 7% after the company announced on June 9, 2008, that they had received FDA approval to sell one of their drugs, Petrem (Sevoflurane) in the veterinary market. The medicine is an inhalant anesthetic and is used for pain management. The company has already initiated product launch in the U.S. veterinary market. Sevoflurane has already been in the U.S. drug market since May 2007 and has greatly contributed to the company's revenue generation.

The latest news also announced that one of the company's anesthetics will be sold in Turkey by Adeka. This large pharmaceutical company received government approval to sell MINRAD's Sojourn on June 12, 2008. Adeka also received approval to sell MINRAD'S SabreSource Image Guidance System. Although MINRAD was pleased to be able to expand their distribution partner's list, this didn't really help them in their current situation. The stock is on the decline again, and that mostly correlates to the company's poor financial performance.

MINRAD still struggles with constant losses from operations, despite a significant increase in revenue over the last quarter. They are also virtually out of money, so in order to start marketing their veterinary anesthetic, they will require an additional capital infusion.

Actually it is rather strange that the company manages to remain on the AMEX. They had consecutive losses from operations for the last 5 years, and the company's share price is dangerously approaching the $1 limit. Their product to the new market will face competition, even if it is a bit better than other anesthetics out there.

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Although sales of Sevoflurane really added to MINRAD's revenues, the company didn't manage to keep their costs at their previously low levels. Despite their profit margin going up in the last quarter, SG&A and R&D expenses did the same. The resulting loss was nearly the same as over the first quarter of 2007. This leads to an interesting conclusion - despite the company's expansion in sales they're not progressing financially and that is reflected in decreasing share price. At this rate the company might surely take their time to become profitable, however the management believes they can achieve that in 2008. Time will show.

About the company:

MINRAD International, Inc. (AMEX: BUF) operates as a pain management company. They offer real-time image guidance systems, various anesthetic and analgesia products. The image guidance systems allow pain management without invasive surgery and can be applied in orthopedics, neurosurgery, and interventional radiology.

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