NMS Pharmaceuticals Inc. said it expects "significant increases in sales" as a result of a distribution agreement it signed allowing its diagnostic products to be sold directly to physicians and clinics. NMS would not identify the company that will distribute its products.
The Newport Beach-based company said that, under the agreement, about 300 salesmen will sell its tests for ovulation, pregnancy, allergy screening and urinary blood directly to doctors and medical clinics. Sales of the ovulation and pregnancy test kits have been handled by about 50 outside representatives in the past and accounted for only a small part of NMS's total revenues, the company said. The allergy and urinary test kits were recently introduced.
In addition to the test kits, NMS has interests in pharmaceuticals, medical research and test kits used by veterinarians.
For its fiscal year ended May 31, the company reported a net loss of $1.9 million, compared to a net loss of $1.4 million for the preceding year.
NMS declined to make a specific earnings forecast but said it expects to be profitable this year, principally because of increased sales of its test kits. The company last posted a profit in 1981.
In over-the-counter trading Wednesday, NMS closed at $3.875 per share, up 25 cents.