Lake Success’ Aceto: Sales Up, Vies for Dog Vaccine

By James Bernstein, Newsday, Melville, N.Y.

Nov. 10–Specialty chemical distributor Aceto Corp. of Lake Success said Friday sales increased 6.4 percent in its fiscal first quarter, which ended Sept. 30, compared to the same period last year, but net income fell almost 50 percent.

The company said it earned $1.3 million in the quarter, down from $2.5 million in the same period last year.

Aceto attributed the earnings decline to $900,000 in legal fees related to an antitrust case against the owner of “certain licensed technology” being used by one of its competitors, and a $1.4-million, noncash charge resulting from a change in the German tax rate.

Aceto said sales in its health sciences segment grew 9.8 percent over the comparable quarter; sales in the chemical and colorants unit declined 1.9 percent, and sales in its crop protection business rose 34.4 percent.

In its earnings release, Aceto said that animal testing that has to be redone under a revised federal protocol has begun. The company is trying to gain U.S. Agriculture Department approval for a dog vaccine. In July, Aceto said there had been a “misunderstanding” with the USDA regarding the testing protocol the agency approved as the basis for label claims, and the testing would have to be redone. The company estimates a national market for the vaccine of $1.5 billion annually.

Shares of Aceto declined 11 cents Friday, closing at $8.08. They are down 5 percent this year.

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