Health: Wheeler dealer Probiotec spending money to make money
Health & Biotech
Last year, in July, pharmaceuticals company Probiotec (ASX:PBP) announced and completed a $23m acquisition in 31 days.
In its half-year report issued today the company said that purchase of contract pharmaceuticals maker ABS was largely behind a 34 per cent bounce in revenue for the first six months of fiscal 2020.
Total revenue was $44m while profit was up 65 per cent to $1.8m.
The company is still predicting — as it has since July 1, 2019 — that revenue for the whole year will top $100m and EBITDA (earnings before interest, tax, depreciation and amortisation) will come in at $16-17m.
Probiotec has been listed since 2006 and has long been a fan of wheeling and dealing.
Last year it also bought Contract Pharmaceutical Services of Australia for $4m. It sold a brand called Celebrity Slim for $1.5m.
In the last five years it has bought and sold six businesses and brands. In 2018 it bought a property next to its factory in Laverton for $3.6m in May, then sold the whole property portfolio for $21.5m and leased it back.
Shaw & Partners, which Probiotec hired last year to raise money for it, said in a report after the capital raising the share price would rise by 18 per cent by the end of 2020 to reach $2.32.
The share price this morning hit a high of $2.40.
Clinuvel Pharmaceuticals (ASX:CUV) is further expanding facilities in Singapore with a new lab to open in July, a move that hinged on the FDA’s grant of marketing authorisation in October for its skin product SCENESSE.
Liver iron measurement device maker Resonance Health (ASX:RHT) fell to a loss of $1.1m in the last half. Revenue was up 3 per cent to $1.9m. It said profit was reversed due to a one-off share payment of $1.7m for employee and director options issued under the company incentive plan.