In the interview with PAP, Bioton’s CEO stated that he expects good results for 3Q06 (due 14 November) with growth from domestic sales and exports. For the full year he expects sales revenues of USD 90-100m (in line with earlier statements of PLN 260-300m) with a third coming from exports. Full year net profit of PLN 100m would be possible only with favourable USD/PLN exchange rate of PLN 3.15-3.20 at year end. According to Adam Wilczega, the construction of the factory in China should start this month and be completed beginning of 2009. This insulin registration in China is expected next year.
Separately, Adam Wilczega, stated that Bioton, is not going to increase its stake in HTL-Strefa via stock exchange transactions above 5% subscribed in the IPO. Currently the companies work on the common strategy of entering Asian markets and Russia with HTL’s products. It should be ready by year end.
Our view: Both information, although do not contain a lot of new information could further support the stock price.