Yesterday, during a press conference, Bioton’s CEO stated that 2006 sales revenues should come in the range of PLN 260-300m, which would constitute 71-97% y/y growth and would also be substantially higher than the consensus estimate. At the same time, Bioton expects 2006 pre-tax profit to reach PLN 100m, versus PLN 24.4m recorded in 2005. This estimate is more than three times higher than the consensus estimate. Bioton is expected to give its official 2006 forecast in June. The growth is expected to be fuelled by sales on the Russian market, which are expected to reach some USD 20m (from nothing in 2005) this year, at a gross margin of 70%. By the end of 2006, Bioton expects to gain full control over Ukrainian Indar, in which it bought a 21.3% stake earlier this week. Should we apply a statutory 19% tax rate to the pre-tax estimate, the 2006 net income would come in at PLN 81m, implying a 2006F P/E of 40.5x. Even though the stock price of Bioton has gained almost 10% during the last three days, we believe it could be further supported by this recent newsflow.