PharmaZen reports significant profit jump

For Immediate Release

April 08, 2016

PharmaZen reports significant profit jump

An increase in capacity and production efficiencies from recently completed capital projects, have seen biotechnology company PharmaZen post a record surplus.

For the 12 months ending 31 December 2015, PharmaZen Limited reported a surplus before tax of $896,635 on turnover of $7,083,991. This compares with a before tax surplus of $28,553 on turnover of $6,709,270 for the prior year. EBITDA was $1.496 million.

Chief Executive Craig McIntosh said that while the global economy remained relatively flat throughout 2015, PharmaZen’s core business underwent steady growth with the company's flagship product StimuCalTM again being the stand out performer.

“StimuCalTM demand continues to grow as a result of on-going research in the Calcium sector highlighting increased risk of heart attack with standard continuous high dose calcium supplementation,” he said.

StimuCalTM delivers therapeutically useful doses of calcium slowly without raising blood levels significantly above normal, a manner that is now widely accepted to be much safer.

“In addition, efforts to continually support key customers with additional research on the other bone active components of StimuCalTM, such as growth factors and collagen, appears to be paying off,” he said.

Increased capacity and production efficiencies were possible with the completion of the 1000kg freeze dryer and the new vacuum drying plant.

“There were a number of challenges during the year with raw material constraints impacting in some areas of the business and the completion of the solvent extraction plant provided ongoing frustration.

“The extraction plant is now scheduled for commissioning in the third quarter of 2016. It has been a far more challenging project than anticipated, compounded by issues around equipment supply and the complexities of the consent process.

“The extraction facility provides a significant growth opportunity for the company and is an integral part of future plans as it opens up a range of added value products, particularly in the marine and botanical sectors,” he said.

Outlook

“We are bullish on the future of the company. Along with the commissioning of the extraction plant in 2016, the company is moving forward with expansion of the post-drying operations in order to meet the higher throughput resulting from the increased drying capacity commissioned in 2015.”

In 2016 all post-drying operations will be moved from the existing plant and into a purpose built, Good Manufacturing Practices (GMP) compliant facility in an 1100sqm factory the company has leased adjoining the current site.

“GMP is becoming increasingly important in all markets and while it is not as yet mandatory in the nutraceutical area, it is clearly only a matter of time before it occurs. Indeed, in 2015, we had our first instance of market rejection as a result of the changing regulatory landscape. GMP will future-proof the company in terms of market access and provide, as early adopters, a significant market edge.

“As a result of these developments PharmaZen is now well placed to meet the growing demand for high quality natural nutraceutical ingredients sourced from New Zealand,” he said.

ends

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