Biotest AG — Earnings Release 2006

Aug 14, 2006

News Details

Corporate | 14 August 2006 13:18

Biotest AG: Continuing growth

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Biotest AG: Continuing growth · First half year of 2006: Sales rise by 19.1% to €137.2 million, an even more marked increase in operating profit than in sales · Success from coagulation agents and immunoglobulins · Contract with ImmunoGen a key milestone in the development of biotherapeutics Dreieich, 14 August 2006. In the first half-year of 2006, the Biotest Group achieved sales of €137.2 million, 19.1% more than the same period of the previous year. In the second quarter, sales were 3.3% above those in the first three months of the year, at €69.7 million. Despite substantially increased expenditure on research and development, at €14.3 million the EBIT for the first half-year was 26.5% higher than the same period of 2005. Earnings before tax (EBT) soared by 75.4% to €10.7 million. The main success factor was the dynamic business growth in the Pharmaceutical segment. In the first half-year, the Pharmaceutical segment made sales of €98.4 million, an increase of 28.1% over the previous year. The growth is the result of a marked expansion in sales within Europe – rising by 17.2% to €76.4 million – and a special delivery of plasma proteins to Iraq in the first quarter. Growth was driven, in particular, by a sharp upturn in sales of immunoglobulins Pentaglobin® and Intratect®. At €38.8 million, the Diagnostic segment sold 1.0% more than in the first six months of 2005. Growth stemmed almost entirely from products for hygiene monitoring. Business in reagents and systems for transfusion and transplantation diagnostics was still characterised by difficult market conditions. In both areas of production, sales in the first half-year were below the 2005 level. The overproportional earnings increase was achieved, despite higher research and development expenses. They have been increased by 63.8% to €13.1 million, due largely to investment in developing three monoclonal antibodies in the Biotherapeutic segment. The share of manufacturing costs of total sales fell from 54.3% to 48.1%. Reasons for the positive trend are the higher yields achieved through new manufacturing procedures and the high capacity utilisation in pharmaceutical production. The marked improvement in the financial result had a positive impact following the significant reduction in financial liabilities. Cash flow from operating activities of €11.9 million was more than doubled than in the first half of 2005. Cash outflow from investment activity of €5.1 million in the first half-year was slightly lower than the comparable period of 2005. Cash outflow from funding activity totalled €6.3 million and was significant lower than in the previous year. Total assets of €359.4 million as of 30 June exceeded the figure for the end of financial year 2005 (€348.6 million). On the asset side, growth resulted primarily from an 8.3% expansion in inventories and a 5% rise in trade accounts receivable. The rises are due to the marked improvement in the level of orders and higher sales volumes. The equity ratio of 47.8% as of 30 June was slightly below the figure for 31 December 2005 (48.5%). As of 30 June 2006, the Biotest Group had a staff complement of 1,105 full-time staff, 31 more than end of 2005. The higher staffing levels are due to further expansion in research and development in the Biotherapeutic segment and in regulatory affairs, as well as additional posts in production and sales. Biotest expects to expand sales to the tune of 15% over the entire year and – despite steep increases in expenditure on research and development – an increase in operating performance (EBIT) over the previous year. Growth will stem mainly from expanded business in the Pharmaceutical segment. Further marketing of Intratect® in Europe will make its full impact on sales over the coming months. In July, Biotest signed a collaboration and licensing agreement with the US company, ImmunoGen, Inc. which secures global marketing rights to the cancer therapy under development (DM-toxins) in connection with the monoclonal antibody, BT-062. The complete quarterly report can be viewed at www.biotest.com under Investor Relations/Publications. 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 immunoglobulines, 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 (c)DGAP 14.08.2006 ————————————————————————— 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 —————————————————————————