Vancouver-based eye drug developer QLT Inc. reported decreased profits in the year's first quarter, as sales dropped and legal expenses rose.

The company, whose revenues fell 18.3 per cent to US$50.4 million, said it lost US$12.1 million, or 13 cents a share, for the three months ended March 31, down from profits of $15.6 million, or 16 cents a share, last year. QLT said its profit decline was primarily due to a reduction in sales of its flagship Visudyne eye drug.

Higher legal expenses were also cited as a factor in decresed revenues by the company.

"Visudyne sales for this quarter were consistent with our internal expectations," Bob Butchofsky, president and chief executive, said in a statement. "We believe that physicians will continue to use combination therapy with Visudyne, anti-VEGF, and steroids as a treatment option for wet age-related macular degeneration."

Visudyne's worldwide sales fell 13.7 per cent to $106.8 million, as sales in the United States dropped nearly 41 per cent to $30.5 million.

Sales outside the U.S. rose 5.3 per cent.