IDT posts record revenues

Melbourne-based drug development and manufacturing company Institute of Drug Technology Australia (ASX:IDT) has posted record revenues of AUD$25.8 million for the 2002-2003 financial year.

IDT CEO Dr Graeme Blackman said that while the company didn't break down its revenues, the hike was primarily attributable to the acquisition of Adelaide clinical trials unit CMAX.

While pre-tax profits increased marginally to $6 million, the after-tax profit remained steady at $4.2 million. The ration of pre-tax profit to revenue decreased from 28 per cent to 23 per cent, mostly as a result of downward pressure on prices of some generic products manufactured by the company, as well as the costs of integrating the clinical trials unit into the company.

However, the company plans to increase its shareholder dividend to $0.06, 20 per cent higher than last year's dividend of $0.05.

"We wanted to send a good message to our shareholders," said Blackman.

Blackman said the company planned to continue to push the spectrum of drug development activity, and possibilities for the expansion into new areas, including specialised secondary manufacturing such as formulation of high-potency drugs for clinical studies and commercial production had been identified.

The recent upswing in the Australian biotechnology sector also signalled signs of a return to activity, he said, and clients who had scaled back projects due to lack of funding, were starting to re-emerge. The trend was being helped by the return of the Commonwealth government's R&D Start grants and the increased availability of capital.