Biotest reported sales of EUR 247.1 million in the first half of 2017
- Successful building inspection of the new building at Dreieich
- Closing of the Public Takeover Offer is subject to the regulatory approval of the US foreign investment authority and of the Turkish antitrust authority
Dreieich 14 August 2017. In the first half of 2017 the Biotest Group generated revenue of EUR 247.1 million (continuing operations), a decrease of 11.0% compared to the same period of the previous year (EUR 277.6 million). With the exception of the US, the sales decline is affecting almost all regions and is essentially due to the recall of the human albumin product and its limited availability in addition to the postponement of tender deliveries.
The EBIT of continuing operations amounted to EUR -20.2 million in the first half of 2017 compared to the previous year's figure of EUR 33.3 million.
In the core segment Therapy, EBIT amounted to EUR -25.0 million in the first six months of the 2017 financial year (same period of the previous year: EUR 17.4 million). The main reason for this development was the charge of EUR 27.6 million caused by the return of products and depreciation of human albumin stocks and the other costs of the recall. In addition to these extraordinary effects of the recall of human albumin, the limited availability of human albumin and the postponement of tender deliveries had a negative impact on earnings in the Therapy segment.
The EBIT in the Plasma & Services segment declined by 26.2% to EUR 12.4 million (previous year: EUR 16.8 million). This was essentially due to sales reductions and compensation expenses in connection with the human albumin recall as well as start-up costs relating to the opening of new plasma collection centers in the United States.
The Biotest Group's total earnings after taxes (EAT) therefore amounted to
EUR -17.8 million in the first half of 2017 (same period of the previous year: EUR 7.7 million). This results in earnings per share of EUR -0.46, compared to EUR 0.19 in the previous year period.
As part of the key Biotest Next Level expansion project, the second milestone was reached on schedule in the second quarter of 2017 with the approval of the new building at the Dreieich site by the construction supervision authority of the District of Offenbach, Germany. One of the requirements for this was proving that the safety systems such as the fire alarm, fire extinguishing systems and alarm systems all work perfectly - especially in interaction with each other. In addition to the dedication of the entire project team, the key to success was the detailed planning of the preparations and the tests to be performed in cooperation with authorities and experts. The first work on relocation activities of laboratories and offices to the new site then began in June 2017.
On 18 May 2017, Tiancheng (Germany) Pharmaceutical Holdings AG, Munich, Germany, which is owned by the Chinese strategic investor CREAT Group Corporation, published the documentation for its voluntary public takeover bid for all outstanding shares of Biotest AG. The shareholders of Biotest AG were offered EUR 28.50 per ordinary share and EUR 19.00 per preference share within this offering. Tiancheng (Germany) Pharmaceutical Holdings AG announced on 7 July 2017 that its voluntary public takeover offer to the shareholders of Biotest AG was accepted for a total of approximately 89.88% of the ordinary shares and approximately 1.08% of preference shares by the end of the extended acceptance period on 4 July 2017. The closing of the transaction is still subject to regulatory approval in the US and the approval by the Turkish antitrust authorities.
On 26 April 2017, the Board of Management announced that, due to the technical defect in the production of human albumin, the associated return of end products already sold and the supply shortages for human albumin in the current financial year, it is now forecasting sales at the previous year's level for continuing operations in 2017, after previously having forecast a low single-digit percentage increase in sales. The EBIT forecast for continuing operations of EUR 46 million to EUR 48 million and for cash flow from operating activities of approximately EUR 40 million have been reduced by around EUR 25 million to EUR 30 million. Achieving the earnings forecast is dependent on the amount and timing of a potential settlement of the damages in connection with the technical defect in the production of human albumin under the company's insurance policies. Potential other risks are described in the risk report of the half-year-report.
The half-year-report 2017 is available on the company's website at
Biotest is a provider of plasma proteins and biological drugs. With a value added chain that extends from pre-clinical and clinical development to worldwide sales, Biotest has specialised primarily in the areas of clinical immunology, haematology and intensive medicine. Biotest develops and markets immunoglobulins, coagulation factors and albumins based on human blood plasma. These are used for diseases of the immune and haematopoietic systems. In addition Biotest develops monoclonal antibodies in the indications of cancer of plasma cells and systemic lupus erythematosus which are produced by recombinant technologies. Biotest has more than 2,400 employees worldwide. The preference shares of Biotest AG are listed in the SDAX on the Frankfurt stock exchange.
Dr. Monika Buttkereit
Biotest AG, Landsteinerstr. 5, 63303 Dreieich, Germany, www.biotest.com
Ordinary shares: securities' ID No. 522720; ISIN DE0005227201
Preference shares: securities' ID No. 522723; ISIN DE0005227235
Listing: Prime Standard
Open Market: Berlin-Bremen, Düsseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart
This document contains forward-looking statements on overall economic development as well as on the business, earnings, financial and assets position of Biotest AG and its subsidiaries. These statements are based on current plans, estimates, forecasts and expectations of the company and are thus subject to risks and elements of uncertainty that could result in significant deviation of actual developments from expected developments. The forward-looking statements are only valid at the time of publication. Biotest does not intend to update the forward-looking statements and assumes no obligation to do so.
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