Biocompatibles' chief executive Crispin Simon says the company's strong sales will enable it to pay a 5p maiden dividend this year.
Sales of Biocompatibles' oncology products more than doubled to £8.3m, while revenues from licensing its drug delivery technology also increased 66 per cent and hit £8.3m. Mr Simon says sales should be boosted further by positive results from an imminent registry trial of 75 patients for secondary liver cancer, and he expects the company to be profitable by 2012.
And there is evidence that both doctors and patients are responding to Biocompatibles' products. Each bead delivers chemotherapy into solid tumours, producing a stronger response than with conventional delivery via saline solutions, and with fewer side-effects. ''Our technology is now accepted by patients as a normal thing to do. We estimate the product was used in about 10,000 procedures last year,'' says Dr Murray.
A big boost for investors will be if the bead is distributed in China, which could begin next year if the country's regulator approves the product later this year.
Prior to these results, house broker Piper Jaffray expected a loss per share of 9.8p in 2009.
| BIOCOMPATIBLES INTERNATIONAL (BII) | ||||
|---|---|---|---|---|
| ORD PRICE: | 100p | MARKET VALUE: | £39.1m | |
| TOUCH: | 98-100p | 12-MONTH HIGH: | 200p | LOW: 94p |
| DIVIDEND YIELD: | 5.0% | PE RATIO: | na | |
| NET ASSET VALUE: | 124p* | NET CASH: | £33.6m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2004 | 2.60 | -5.70 | -15.4 | nil |
| 2005 | 3.40 | -6.70 | -17.4 | nil |
| 2006 | 5.96 | -6.26 | -14.8 | nil |
| 2007 | 9.11 | -4.21 | -5.30 | nil |
| 2008 | 17.7 | -1.19 | -1.20 | 5.0 |
| % change | +94 | |||
Ex-div:** Payment:** *Includes intangible assets of £17.3m, or 44p a share **The board plans to pay the dividend in May after shareholder approval | ||||
