Bioton has reported that it is considering a new issue of shares, with rights for current shareholders, within the next couple of months. The exact date of the EGM that would vote on it has not yet been set. Bioton’s CEO has indicated that the issue price could be at a substantial discount to the current stock price and could be as low as PLN 1 per share. The money would be set to finance the current project pipeline, including capacity expansion in the Ukraine and Russia, as well as 2-3 new not-yet-specified developments.
As a separate development, Bioton’s Singapore subsidiary, Sci Gen, signed a memorandum of understanding for the purchase of a biological manufacturing facility in India from Shrey Biotech. The value of the potential transaction was not disclosed. The factory, which according to Bioton’s management is expected to be fully operational from the beginning of 2007, is expected to produce not only human insulin but also potentially other drugs. According to Bioton’s management, should the transaction be completed, it would increase Bioton’s insulin production capacity by some 100%. The acquisition is expected to be completed by the end of May and is subject to the fulfillment of various conditions.
Both news had a very positive impact on yesterday’s trading, as Bioton's stock price grew 7.8% to an all-time high of PLN 19.45.