PharmaZen ‘cautiously optimistic’ after year

PharmaZen ‘cautiously optimistic’ after challenging year

Despite difficult trading conditions, uncertainty over the global recovery and a stubbornly high dollar, Biotechnology company PharmaZen is cautiously optimistic it has weathered the worst of the storm and is looking for an improved 2010.

For the 12 months ending December 31, PharmaZen reported a surplus before tax of $186,088 on turnover of $5,423,936. This compares with a before tax surplus of $444,822 on turnover of $5,801,712 for the previous 12 months.

Shares in PharmaZen, which supplies animal and health products, are traded through the unregistered securities trading facility.

PharmaZen chief executive, Craig McIntosh, said that forward sales orders for the first quarter 2010 are significantly ahead of 2009 and this is reflected in the increased year end stock holding.

“While there is a temptation in difficult trading conditions to cut back in areas of product and market development, the board considered this investment essential to the long term profitability of the company.

“This commitment also resulted in the addition of two new products for the Bone and Joint health sectors, both of which have been well received in the market with sales commencing in the last quarter of 2009.

“Perhaps of greatest significance is the new business that has been achieved in the United States market in the last quarter and we are optimistic that this will provide long term profitability for the company,” he said.

McIntosh said that the start of the year was reasonably promising with the dollar down in the US 51-53 range, which gave some respite, but unfortunately this was short lived as the Kiwi rose rapidly in value over the balance of the year.

“With all markets taking a cautious approach to product stock levels and an increased focus on price, it was difficult to maintain margin.

“Offsetting the fact that the New Zealand sales dollar value was down 8%, production sales in tonnage increased by 3% representing a 45% increase in the last two years, which confirms that demand remains strong for the company’s product range.

“In summary, the company has maintained profitability, significantly increased sales volumes, opened new markets and launched new products in what has been one of the most difficult periods for exporters in recent history,” he said.

The AGM will be held at the clubhouse, Otago Golf Club, 24 Balmacewen Road, Dunedin, on May 12 12.30pm.

ENDS

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