Biotest AG: Biotest confirms sales and earnings target following good third quarter
Biotest AG / Quarter Results
Corporate news transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
----------------------------------------------------------------------
Biotest confirms sales and earnings target following good third quarter
Sales up 17.5% after nine months, EBIT up 19% year-on-year / Strong growth
in plasma protein business / Focus in Diagnostics on immunology and
microbiology / According to positive new data, clinical trials imminent in
Biotherapeutics / Orphan drug status approved for Cytotect®
Dreieich, 14 November 2006. Biotest AG, Dreieich, realised sales of €207.9
million in the first nine months of the current financial year,
representing an increase of 17.5% compared with the same period for the
previous year (€177.0 million). Sales stood at €70.7 million in the third
quarter (up 14.4% year-on-year). The growth was almost exclusively
attributable to plasma protein business. With the immunoglobulins,
coagulation factors and albumin products developed, manufactured and
marketed by this division, Biotest recorded sales totalling €150.3 million
for the period January to September. This figure was 25.8% higher than that
for the first three quarters of 2005 (€119.5 million). In the Diagnostic
division, Biotest achieved sales of €57.6 million, which was slightly more
than in the previous year (€57.5 million).
EBIT, in particular, benefited from the positive trend in plasma protein
business, improving by 19.0% to stand at €21.9 million (previous year:
€18.4 million). Consequently, Biotest posted a marginally overproportional
rise in earnings, although at the same time research and development
expense was also increased from €13.0 million to €19.8 million. A
substantial proportion of this was invested in the development of
monoclonal antibodies. Due to a renewed improvement in the financial result
(€-6.3 million compared to €-8.4 million in the previous year), earnings
before tax (EBT) amounting to €15.6 million exceeded the previous year’s
figure by 56.0%. Earnings per share rose from €0.79 to €0.80. On a
comparable basis, taking into consideration the capital increase carried
out in 2005, earnings per share totalled €0.87.
In plasma protein business, Biotest exceeded sales for the first nine
months of the previous year in all product groups and sales regions. Growth
in European markets outside of Germany proved very dynamic (+18.6%) and was
due, in particular, to the success of the polyvalent immunoglobulin,
Intratect® in the UK, high sales of coagulation factors in Eastern Europe
and an increase in demand for Pentaglobin® in Greece. In Germany, sales
grew by 3.4%. As a result of the marked rise in global market prices for
albumin, Biotest participated in several bids for tender this year and
succeeded in winning tenders to supply Iraq and other countries in the
Middle East. Sales generated by toll manufacturing also climbed
considerably.
In plasma protein business, Biotest continued to develop its product range.
With Hepatect® FH, the second immunoglobulin manufactured by Biotest using
the modern filter aid procedure was approved in October 2006 by six
European countries and marketing of the product began immediately. At the
end of October, the European Medicines Agency (EMEA) granted the
immunoglobulin, Cytotect®, orphan drug status in the indication
cytomegalovirus infection treatment during pregnancy. This type of status
guarantees 10 years market exclusiveness as well as tax privileges and
other financial benefits. An application for orphan drug status has been
presented to the FDA as the responsible authority in the USA. A phase III
study due to be launched next year is set to consolidate the existing data
on the effectiveness of Cytotect®.
In the Diagnostic division, the situation was divided: while sales of
hygiene monitoring products recorded positive growth of more than 10%,
business with reagents and systems for transfusion and transplantation
diagnostics were down year-on-year and remained below expectations. The
Diagnostic division of Biotest AG will now focus on the attractive areas of
immunology (transfusion) and microbiology (hygiene monitoring), where it
will target the high sales and margins of the US market, in particular.
Transplantation and infection diagnostics will no longer comprise core
business areas, but operations will continue for the time being.
Following the approval of the automated system, TANGO® optimo, granted in
2005, all manual reagents for transfusion diagnostics were submitted to the
FDA for approval. At the same time, Biotest established a sales structure
for transfusion diagnostics products distributed to small and medium-sized
hospitals in the USA. In microbiology, Biotest will also provide hygiene
monitoring products to the food and cosmetics industry in addition to
pharmaceutical companies.
The research products in the Biotherapeutic segment continued to progress.
The conclusion of a licensing agreement with partner ImmunoGen represented
a key milestone for Biotest in the development of BT-062, which is being
developed for the treatment of multiple myeloma, as well as considerably
improving the patent situation. The combination of BT-062 and the TAP
technology of ImmunoGen facilitates the targeted and highly effective
destruction of tumour cells. Due to the pre-clinical data available to
date, renowned haematologists are expecting BT-062 to be more effective in
this indication than previously approved therapeutics.
BT-061 has satisfied all the requirements for the resumption of clinical
testing. Additional pre-clinical trials, which were carried out following
the occurrence of serious incidents related to the clinical development of
an antibody by TeGenero in the UK, again confirmed the effectiveness and
the high quality and safety standards of BT-061. Biotest therefore
anticipates that the responsible authorities will soon grant approval for
the clinical development to be resumed.
Thanks to a new syndicated loan agreement concluded in October with
considerably more favourable conditions, Biotest’s financial result will
continue to improve in the next few years.
In view of the continued positive situation in the plasma protein markets,
Biotest also expects sales growth of at least 10% for financial year 2007.
Despite a renewed increase in expenditure for Biotherapeutics research, the
company is also striving to achieve further growth in EBIT.
About Biotest
Biotest AG, Dreieich, Germany, is a company that researches and
manufactures pharmaceutical, biotherapeutic and diagnostic products and has
specialised in immunology and haematology. In its Pharmaceutical segment,
Biotest develops immunoglobulins, clotting factors and albumins based on
human blood plasma. These are used for diseases of the immune system or
haematopoietic system. In addition, Biotest also researches into the
clinical development of monoclonal antibodies, including in the indications
of rheumatoid arthritis and blood cancer. The Diagnostic segment spans
reagents and serology and microbiology systems which are used, for example,
in blood transfusions. Biotest has around 1,100 employees worldwide and its
shares are listed in the Frankfurt Stock Exchange's Prime Standard.
Biotest AG: Dr. Michael Ramroth, Tel. +49 (0)6103 801-338
Fax: +49 (0)6103 801-347, e-mail: michael.ramroth @biotest.de
Biotest AG, Landsteinerstr. 5, D-63303 Dreieich, www.biotest.de
DGAP 14.11.2006
----------------------------------------------------------------------
Language: English
Issuer: Biotest AG
Landsteinerstr. 5
63303 Dreieich Deutschland
Phone: +49 - 6103 / 801 - 0
Fax: +49 - 6103 / 801 - 150
E-mail: mail@biotest.de
WWW: www.biotest.de
ISIN: DE0005227201, DE0005227235
WKN: 522720, 522723
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
