Stockholm – Swedish Orphan Biovitrum AB (SOBI) has reported weak results for 2010. The company’s net income declined by 7.7% to SEK1.9bn, with losses for the period totalling up to SEK104m. SOBI spokesmen said that several external factors had a serious impact on financial performance, emphasising the strong Swedish crown in relation to other currencies and governmental health care budget cuts in several European countries. “Conditions on the European pharmaceutical market are expected to remain unchanged in 2011, with limited growth,” said SOBI CEO Kenneth Rooth. With this outlook in mind, the firm’s management has applied the brakes: reductions – particularly in personnel – are planned in order to cut operating costs by SEK100m annually. Around 70 staff members will be affected, predominantly in preclinical development, CMC (Chemistry, Manufacturing and Controls) and within the company’s Manufacturing and Quality Control/Quality Assurance in Stockholm. “We have a number of product launches in progress and several late-stage development projects with great market potential. These projects require major resources,” said Rooth. An additional guaranteed issue of common shares valued at around SEK600m should lower SOBI’s debts further. The final terms of the rights issue, including subscription price and number of shares to be issued, have yet to be determined.