Serologicals upbeat despite sales slide

Company expects Lawrence plant to be operating in first quarter of '06

Even as sales of its cell-growth product sagged during the first quarter, Serologicals Corp. officials still wish their new plant in Lawrence was operating.

Serologicals officials reaffirmed their commitment to the idle $28 million plant in the East Hills Business Park during a conference call Thursday with analysts. David Dodd, president and CEO, and Bud Ingalls, chief financial officer, said they expected to have the plant producing Ex-Cyte during the first quarter of 2006.

Word came after the Atlanta-based company’s surprise move last month to lay off 20 production workers in Lawrence. The layoffs idled the plant, as Serologicals announced that the plant’s operations still needed to be validated by customers before it could enter full production.

The plant had been expected to be cleared for full production by the end of May.

On Thursday, Serologicals revealed that the company’s sales of Ex-Cyte — a liquid derived from bovine serum that has been dubbed “Miracle-Gro” for cell cultures used in drug production and research — had sagged during the first three months of the year.

Ex-Cyte sales were $2.8 million during the first quarter, down from $3.6 million during the first three months of 2004, Serologicals said. Officials attributed the decline to customers who had committed to buying the product during the entire year, but had chosen to delay purchases until later quarters.

Even with the decline, officials said, Serologicals is pleased to have an outlet beyond its sole production plant for Ex-Cyte in Kankakee, Ill.

“The bottom line is: The faster we get Lawrence up and running, the more Ex-Cyte we can make,” said Bill Davis, a Serologicals spokesman. “Even though part of the problem this quarter was not enough Ex-Cyte was sold, our base feels strongly that the need is out there for it.”

Serologicals shares slid $1.77, or 7.4 percent, to close at $22.06 Thursday on the Nasdaq.