Encouraging half for PharmaZen despite high dollar

Encouraging half for PharmaZen despite high dollar

Despite a stubbornly high New Zealand dollar, biotechnology company PharmaZen has announced a solid first half with a profit of $210,000 after interest and depreciation on a turnover of $2.980 million, with further improvement likely over the rest of the year.

The half-year result to June 30 is up on the $157,000 profit for the same period in 2009 on a turnover of $2.801 million.

PharmaZen chief executive, Craig McIntosh, said that the result has been pleasing given the global economic situation is still causing issues and the strength of the New Zealand dollar.

“We have seen strong demand for product from Japan and the North American markets with volume up almost 20% on same period last year with Europe remaining the only market still struggling.

“Unfortunately our increased volumes have been largely offset by the high New Zealand dollar which has averaged over .70 against the USD as opposed to .57 for the same period 2009,” he said

While profitability levels will continue to depend on the strength of the New Zealand dollar, the company is encouraged by the strong demand and its ability to produce profits on such an unfavourable exchange rate.

“Forward orders for the second half of 2010 remain strong and the company has several product development initiatives that are looking extremely promising. We hope to be able to make announcements on these developments later in the year,” he said.

PharmaZen trading division Waitaki Biosciences International, in Christchurch, manufactures a range of powder products extracted from a wide range of animal and marine sources. The range includes green-lipped mussel, shark cartilage, natural calcium and Chondroitin Sulphate. The products are used by other companies as a base for health products, mainly in the areas of bone health, joint health, immune and digestive support as well as hair care and cosmetic applications.

ENDS

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