Meldex says revenue triples in FY07; flags further growth; silent on corporate suitor
Meldex International plc (MDX.L), the specialty pharmaceutical and healthcare company, reported that its revenue for the year to end December grew 217% to £30m.
The trading update was at the top end of analyst expectations, the company said. However, the Cambridge-based group’s share price slid 3.6% in morning trading, valuing the group at around £135m. Full preliminary results will be issued in April.
Meldex said nothing about the approach it received ten days ago which, it said at the time, may lead to an offer for the company. At that time its shares lept 50%, reversing a slide of similar magnitude in December. Indeed, it is not hard to imagine the December share price slide is what caught the attention of the unnamed suitor, or that the good news in today’s trading update may pressure said suitor to up whatever offer it puts on the table.
Or it may frighten him off, which may be why the share price came off a touch.
CEO Richard Trevillion (pictured) said: "Meldex has had a superb trading year in 2007. The Group has out-performed its own targets and has demonstrated robust and rapid organic growth.
“The Company's pipeline and growing portfolio of products provide a strong platform for further growth in 2008 and beyond.
“Key launches of products such as analgesics and the nicotine replacement strip, benefitting from TabWrap, Soluleaves and Solupol enabling technologies, have been successfully achieved.
“We are excited by our newly acquired brands Rocgel and Alfatil, our extended analgesic range and other key product developments. This means that Meldex is well positioned going forward."
The company said that the integration of all acquisitions in its busy 2007 has been completed as demonstrated by the cross fertilisation of regional products, enhanced distribution partnering arrangements and successful product launches.
It said the acquisition of the Melbrosin group of companies had been “transformational” and that it had rapidly created a global Over the Counter division.
Trading to date in 2008 has been strong, it said.
During 2007 th company changed its name from BioProgress plc.
24th January 2008
