Biotest AG: First time Revenue and EBIT contribution by Biotherapeutics Segment

Continuing difficult Plasma Protein Product Environment

15-Aug-2011 - Germany

The Biotest Group has increased sales in the first half of 2011 in it's continuing operations (plasma proteins and Biotherapeutics) by 4,9 % to EUR 212,9 million compared to EUR 202.9 million in the previous year period. The increase was largely attributable to an upfront payment under a development and cooperation agreement in the Biotherapeutic segment recognised on a pro rata basis. Earnings before
interest and tax (EBIT) decreased to EUR 20.0 million, a 2.9% decrease compared to the previous year's period EBIT (2010: EUR 20.6 million).

Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased by 0.3% in comparison to the first half of 2010 (EUR 34.1 million) to EUR 34.0 million. Earnings before taxes (EBT) were at EUR14.9 million, representing a decline of 15.3% compared with the previous year's figure (EUR 17.6 million). After deduction of income tax, the profit for the period of the first six months of 2011 in the continuing operations was EUR10.9 million (2010: EUR12.4 million).

In the Plasma Proteins segment the pressure on the prices continued in the second quarter of 2011 in the relevant markets for Biotest. Contrary to expectations, business volume in the Plasma Proteins segment remained constant compared to the equivalent period in the previous year. Rising sales volumes were tempered by the continued difficult pricing situation. Prices stayed clearly below previous year's level, particularly in markets outside the European Union and the US. While in Germany and other European countries a stable development or growth was recorded, the Biotest business in Asia and Eastern Europe was under pressure. The decline in segment EBIT compared to the equivalent period in the previous year from EUR 35.8 million to EUR 28.0 million reflects the difficult pricing situation as well as unabsorbed costs in connection with the delayed start of production at Biotest Pharmaceuticals Corp./ Boca Raton/ USA. Significant progress was made in the second quarter of 2011 to correct problems relating to the automation of critical process steps. In the mean time first charges of the Hepatitis B Hyperimmunoglobulin Nabi HB could be produced again.

In the Biotherapeutics segment the ongoing R&D projects are progressing according to plan. The signing of an agreement with Abbott in June 2011 to develop and market the monoclonal antibody BT-061 is an important step forward in Biotest's biotherapeutic development efforts. The contract provides for an upfront payment to Biotest in the amount of USD 85 million, which has been paid already and further milestone and other sales-dependent payments which may total up to USD 395 million. Due to this agreement with Abbott a pro rata share will contribute to the Biotest Group's sales and results in 2011. For work completed in the first half of 2011, Biotest recognised EUR 9.1 million through profit or loss. The remainder of the upfront payment will be amortised through profit or loss on a straight-line basis over the period from 1 July 2011 to 30 June 2014 in the Biotherapeutic segment.

The outlook for the Continuing Operations for the full year 2011 has been adjusted. The Biotest Group anticipates low, single-digit sales growth compared with the previous year (sales 2010: EUR 412.5 million). Including the Abbott contribution, Biotest expects EBIT of EUR 40 million for the entire year 2011.

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