On yesterday’s press conference, Bioton’s CEO Adam Wilczega, reiterated that the company plans to achieve US$ 20m of revenues from Russia this year and that there is a big chance for PLN 100m of net profit (implying 2006F P/E of 53.1x). So far Bioton have already contracted US$ 8.6m from Russia. According to the CEO “the real money” Bioton could make in 2007 when it plans to grow its Russian operations to US$ 40-50m of sales and reach 20% of the insulin market, which is growing 10% p.a. The company also plans to add profits from Ukrainian market, where it plans to take over control of company Indar (it currently owns 21%), which has annual revenues of some US$ 20m.
Separately, the CEO, introduced long terms plans of starting production of insulin in tablets. The disadvantage of the inhaled insulin, currently produced by Pfizer and sold as a substitute to inconvenient and painful injections are problems with accurate dosing. According to Adam Wilczega, due to much higher share of active substance, inhaled insulin is much more expensive than injections and none of the European countries have decided to refund it.
Our view:
This another portion of growth plans presented by the CEO just few days after the registration of insulin in Russia, should have further positive trading impact.