March 9, 2018

Psychemedics records $6.1M annual profit

Courtesy/Psychmedics
Psychmedics's Acton offices.

Thanks to what the company says is a hot Brazilian market, Acton drug hair testing firm Psychemedics is reporting a 2017 profit of $6.1 million.

That net income is based on revenue of $39.7 million, an increase of 2 percent from 2016.

Earnings in the fourth quarter, however, were below the company's expectations. Revenue was $9.8 million compared to $10.8 million in 2016's fourth quarter, while the $2.4-million profit matched the figure for the same period in 2016.

Professional drivers in Brazil are required to be drug tested, and a new law requires drivers to renew their license every two and a half years beginning in September, instead of the current five years.

"This will represent a virtual doubling of this large market in the not-too-distant future," CEO Raymond Kubacki said in a statement.

Kubacki said Brazil's government mandated testing program has helped to reduce highway accidents and fatalities, and the government is considering a test for other types of driver's licenses.

"We intend to continue to be a major factor in the development of this large and growing market," he said.

Kubacki also highlighted several highlights on 2017, including being the first lab to be approved for hair testing for drugs of abuse in Iowa, being the first cleared by the U.S. Food and Drug Administration for a hair test for benzodiazepines and developing the first synthetic cannabinoid hair test for employers.

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