Bioton posts 1.8% sales dip and big net loss in 2009

2010-03-05

Bioton reported an 18.4% y-o-y increase in group sales revenues in the fourth quarter of 2009, to PLN 71.5m (€18.2m). At the same time, consolidated net loss more than doubled to PLN 462.3m (€117.4m). The strong sales result in Q4 was not sufficient to achieve positive sales growth for the year, with group revenues down by 1.8% to PLN 288.1m (€73.2m), according to preliminary unaudited figures. Consolidated net loss surged by 133% to PLN 519.5m (€132m) in 2009.
In its commentary to the quarterly report, Bioton’s management board explained that the scale of the net loss incurred last year was mainly due to asset writedowns, which amounted to PLN 393.1m (€99.9m) in 2009. The move was part of a thorough overhaul of the company’s operations designed to cut operating costs, reduce debt, and focus on core competencies in biotechnology, with particular focus on diabetology and endocrinology. Bioton’s strategic goal is to accelerate sales growth of its flagship recombinant human insulin on selected foreign markets through distribution agreements with global pharma firms, and to concentrate R&D efforts on products with the highest market potential, most notably its long-acting growth hormone. The management board stressed that new strategy was firmly on track, with new distribution agreements expected to be concluded in 2010 for the markets of Russia and the Asia & the Pacific region, and with the registration procedure for its growth hormone product nearing completion at the EMEA.
In 2010 Bioton expects to achieve sales revenues of PLN 363m (€92.2m), an increase of 26% over 2009, and to swing into profit with group net income of PLN 94m (€23.9m).