Biotest AG / Final Results
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2007 a very successful year for Biotest
· Sharp increases in sales and earnings
· Plasma proteins reach a new level
· Strategic restructuring of Diagnostics continues
· Biotherapeutics: clinical development of BT-061 yields positive data
Dreieich, 22 February 2008. The Biotest Group recorded a marked increase in
sales and earnings in financial year 2007. According to preliminary
figures, for the first time, Group sales broke the EUR 300 million
threshold to total EUR 326.4 million, representing an increase of 15.8% on
the figure for the previous year (EUR 281.9 million). The 22.6% increase in
earnings before interest and taxes (EBIT) to EUR 38.5m (2006: EUR 31.4
million) was also disproportionately high in relation to sales.
As in previous years, the extremely dynamic plasma protein business proved
a major factor in the overall positive development. In the Pharmaceutical
segment, Biotest increased sales from EUR 205.1 million to EUR 247.1
million (+ 20.5%). Almost every product group registered growth, and most
notably, polyvalent immunoglobulin Intratect(TM) and coagulation preparation
Haemoctin(TM) generated particularly high earnings.
In the Diagnostic sector, at EUR 79.4 million, Biotest sales were up by
3.3% on the previous year (EUR 76.9 million). Driven by the varied range of
new products launched on the market, the microbiology segment (hygiene
monitoring) recorded a marked increase in sales. However, the volume of
business in the immunology sector dropped back from the previous year's
The major regional market accounting for just below one third of total
sales was Germany, where the Biotest business volume was 14.0% up on the
previous year. A volume of EUR 262.0 million corresponding to 80% of Group
sales is attributable to the combined European market.
Biotest recorded growth in EBIT, which is disproportionately high in
relation to the increase in sales in spite of a higher level of investment
in research and development. The EBIT figure takes account of expenditure
totalling EUR 1.5 million associated with the acquisition of the plasma
protein business from US company, Nabi Biopharmaceuticals Inc. On a
like-for-like comparison with the previous year, Biotest achieved an
operating result amounting to EUR 40.0 million (+ 27.4 %).
The nine donor centres effectively acquired in December 2007 together with
the production and development facilities based in Boca Raton, Florida,
USA, were transferred to the newly established Biotest Pharmaceuticals
Corp. With this transaction, Biotest has geared up its plasma protein
business to a new level. The company now has direct representation on the
US market. With annual demand running at around 35 tonnes and a market
price which is up to 10% higher than its European equivalent, the US
remains the world's largest and most attractive market.
Biotest has achieved this important goal in its corporate strategy much
sooner than would have been possible through pursuing FDA approval in the
US for plasma protein products manufactured in Dreieich. In addition, the
annual fractionation capacity will rise to more than 1 million litres in
the medium term as a result of the inclusion and expansion of the
production facilities acquired in Boca Raton. The quantity harvested from
the company's own plasmapheresis stations currently amounts to around
600,000 litres per annum, which is an increase of approximately 400,000
litres. This puts Biotest among the top six plasma protein manufacturers in
the world. The approvals for other preparations anticipated for the coming
years, in Europe as well as in the USA, will serve to further increase the
sales and earnings potential of this division.
Similarly, in the Diagnostic segment, the company has come an important
step nearer to developing the North American market. In summer 2007, heipha
Dr. Müller GmbH, in which the Biotest Group has a majority stake, was
granted a licence to import culture media into the USA. Sales activities
were immediately launched and Biotest is already anticipating significantly
higher sales for the current year. In the Immunology segment (transfusion
and transplantation diagnostics), Biotest was able to advance its strategic
restructuring with the transfer of operations to an independent company. In
future, Biotest Medical Diagnostics GmbH will operate from a new base in
Dreieich located outside the Biotest facilities' site. This gives Biotest
the option of establishing a joint cooperation with strategic partners
quickly and efficiently.
Some important milestones have been achieved in the development of
monoclonal antibodies (mAb), all of which have been amalgamated within the
Biotherapeutic segment. Clinical phase II studies with BT-061 as a
treatment for the indications rheumatoid arthritis and psoriasis are
ongoing. Initial data obtained from phase I studies confirm the anticipated
very good compatibility of the antibody. The development of two other
monoclonal antibodies in the Biotest pipeline is continuing according to
plan. The start of the clinical development of MAb BT-062 is planned for
summer of this year.
A steep increase in the price of ordinary and preference shares, a very
successful capital increase to finance the US transaction and inclusion of
its preference shares in the SDAX selection index on the Frankfurt Stock
Exchange indicates that this has also been a good year on the capital
markets for Biotest.
As Prof. Gregor Schulz, Chairman of the Biotest Board of Management,
confirmed: 'We have taken important steps in our corporate development in
2007. The full impact of these will be reflected in the coming years in our
corporate sales and earnings. We shall stay on course for growth with
renewed vigour.' For the year ahead, Biotest is forecasting sales of an
order of magnitude totalling EUR 400 million, with a 10% increase in EBIT
compared to the previous year.
Biotest will publish the Group income statement and balance sheet in full
on 20 March 2008 and hold a telephone conference for analysts about this
starting at 10am. The complete Annual Report will be available to view on
our website www.biotest.de from 28 March 2008.
This document contains forward-looking statements on overall economic
development as well as on the business, earnings, financial and asset
situation 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
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.
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 the Biotherapeutic segment, Biotest researches
into the clinical development of monoclonal antibodies, including in the
indications of rheumatoid arthritis and blood cancer. The Diagnostic
segment spans reagents and immunological diagnostics which are used, for
example, in blood transfusions and transplants. Biotest has around 1,800
employees worldwide and its shares are listed in the Frankfurt Stock
Exchange's Prime Standard and S-DAX.
Biotest AG, Landsteinerstr. 5, D-63303 Dreieich, www.biotest.de
Dr. Michael Ramroth
Tel: +49 (0) 6103 801-338
Fax: +49 (0) 6103 801-347
WKN, ISIN ordinary share: 522720, DE0005227201
WKN, ISIN preference share: 522723, DE0005227235
Listed: Prime Standard/official trading
Frankfurt, Berlin, Düsseldorf, Hamburg, Stuttgart
22.02.2008 Financial News transmitted by DGAP
Issuer: Biotest AG
Phone: +49 - 6103 / 801 - 0
Fax: +49 - 6103 / 801 - 150
ISIN: DE0005227201, DE0005227235
WKN: 522720, 522723
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Stuttgart
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