BioProgress makes big dent in losses in 1H06; on track for break even
BioProgress plc (BPRG.L), the specialty pharma and drug delivery company that has been busy reinventing itself over the past year, cut its operating loss to £1.57m for the six months ended 30 June 2006 from £6.17m in the corresponding period in 2005.
It said turnover jumped to £4.2m from £1.3m and gross profit increased to £2.2m from £0.6m.
Chief Executive Richard Trevillion (pictured) said the company had had "a very successful and productive six months.
“We have significantly advanced our strategy of turning the Group into a speciality pharmaceutical company. In addition to increasing turnover substantially, the Company has significantly reduced losses and is on track to be trading on an annualised break-even basis.
"Together with our strengthened IP position, our enabling technology systems, ongoing relationships and discussions with both mid to large cap pharmaceutical companies, we look forward to growing the business, both organically and through targeted acquisitions, and thereby significantly increasing shareholder value."
Share price gains
The stock market responded by bidding up its share price 5%, or 2.25p, to 47.75p, valuing the Cambridge-headquartered group at about £64m.
The first half of 2006 was the first operational period under the Company's new structure after last year’s purging of senior management and complete strategy rethink
Mr Trevillion said the Group had been quick to apply its enabling systems and polymer science expertise to line extensions of acquired brands, which had resulted in rapid product development.
“All these programmes have required investment and resource allocation, the benefits of which will continue to be realised in subsequent financial periods,” he said.
“With finite resource, this has delayed some potential short term revenue but created substantial upside potential. Nevertheless, the Company has managed to keep in line with revenue expectations and create a sustainable product development pipeline for continued growth”.
BioProgress has strengthened its distribution capability with the appointment of Cristers SA, a pharmaceutical sales and marketing company, to promote and distribute both our its OTC Soluleaves and its other branded line extensions in France.
The firm also entered into a co-development arrangement with Uluru Inc, combining its in-the-mouth polymer and formulation technology with Uluru's Oradisc technology. This provides a unique release capability to BioProgress' in-the-mouth range enabling instant, sustained and delayed release properties within the same system. The combination of these technologies allows the development of innovative products in a market that currently has no acceptable product solution.
“The potential is enormous and addresses markets of $800m in the US alone, according to IMS data,” Mr Trevillion said.
28th September 2006
