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How Athenex’s Business Segments Performed in Q1 2018

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Business segments

Athenex (ATNX) operates in three business segments—Oncology Innovative Platform, Global Supply Chain Platform, and Commercial Platform.

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Oncology Innovation Platform segment

Athenex’s Oncology Innovative Platform segment performs proprietary drug research and development. It focuses on Athenex’s orascovery oral absorption platform, Src kinase inhibitors, and the transmucosal drug delivery system.

Research activities under this segment are carried out in the United States, Taiwan, Hong Kong, and China. Revenues from this segment increased from $733,000 in the first quarter of 2017 to $25.23 million in the first quarter. While the segment had incurred a net loss of $28.26 million in the first quarter of 2017, in the first quarter it generated net income of $1.51 million.

Global Supply Chain Platform segment 

The company’s Global Supply Chain Platform segment includes Athenex Pharma Solutions and Polymed. Athenex Pharma is a contract manufacturing company providing small to mid-scale manufacturing of clinical and commercial products for both pharma and biotech companies. It also performs microbiological and analytical testing for raw material and formulated products.

It has expanded its operations to manufacturing and selling pharmaceutical products. Polymed markets active pharmaceuticals ingredients (or APIs) and medical devices in North America, Europe, and Asia. Polymed also develops new compounds and processing techniques.

Revenues from this segment decreased from $6.29 million in the first quarter of 2017 to $5.13 million in the first quarter. The net loss from this segment widened from $1.15 million in the first quarter of 2017 to $6.57 million in the first quarter.

Commercial Platform segment

Athenex’s third segment, Commercial Platform, includes the company’s pharmaceutical division. This division is engaged in manufacturing, distributing, and selling generic pharmaceuticals. This segment also provides services and products to external customers that are primarily in the United States.

Revenues from the Commercial Platform segment increased from $77,000 in the first quarter of 2017 to $8.69 million in the first quarter. Its net loss decreased from $11.58 million in the first quarter of 2017 to $2.24 million in the first quarter.

In the next part of this series, we’ll look at Athenex’s geographic performance and its revenues by product group.

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