Mera Pharm's profit might be short-lived


POSTED: Friday, June 12, 2009

Mera Pharmaceuticals Inc. posted its second profitable quarter within the last nine months but reaffirmed that it stands to lose monthly revenue due to the end of a licensing agreement it has with Hawaii-based HR BioPetroleum Inc.

        Second-quarter net
        Year-earlier loss

The Kona-based company, which makes human nutritional products out of microalgae, posted net income of $22,921 in its fiscal second quarter ended April 30 compared with a loss of $72,614 a year ago, according to a regulatory filing yesterday with the U.S. Securities and Exchange Commission.

Revenue jumped 36 percent to $206,762 from $152,057.

Mera said HRBP won't be renewing a license agreement signed in December 2007 that grants HRBP access and use of Mera's facilities to perform a research project relating to large-scale cultivation and production of certain microalgae species. The agreement also grants HRBP license rights to a patent and other intellectual property owned by Mera.

Mera said it gets $22,000 a month from the HRBP agreement, which will end effective July 8 unless a new agreement can be negotiated.

Still, Mera Chief Executive Greg Kowal said the company is talking to another entity to take the place of HRBP.

“;It's a blow temporarily, but revenue from sales from AstaFactor and Kona Sea Salt have been growing nicely,”; Kowal said.