GroPep cuts its losses to produce second-half profit

Adelaide-based GroPep has continued to shuck off the disastrous after-effects of its purchase of Biotech Australia by posting a second-half profit for 2002-03.

Releasing its figures today, GroPep posted a full-year net loss of $2.5 million, down from the previous year's $6.9 million.

In a statement, company chairman Richard England said $1.7 million of the 2003-03 loss was attributable to the closure of the Sydney operations acquired in the Biotech Australia takeover.

Meanwhile, revenues for the period were $10.8 million -- $7.2 million from product sales -- a 6.6 per cent increase on 2001-02. R&D expenditure was almost $2 million less than the previous period, at $3.3 million.

The company had $4.6 million in cash at June 30.

GroPep's plans for the new year include commencing a Phase Ia trial of its PV903 treatment for recurrent miscarriage, and reporting the results of its Phase II trial of PV702 for chronic venous ulcers.

No one from GroPep was available for comment at press time.