 |
 |
 |
|
INSTITUTE OF DRUG TECHNOLOGY AUSTRALIA LIMITED
For the year under review, the company has reported revenue of $26.9 million and profit after tax of $4.47 million. A fully franked dividend of 4.5 cents per share was paid on 21 October 2005 bringing the total dividend for the year to 8 cents per share. This represents an overall increase in total dividends of 14% over last year and reflects a 76% payout ratio on after tax earnings. The Annual Report for the company provides a detailed overview of operations for the past year. However I would like to make some further comments and elaborate on a number of points made in the report. Shareholders will be aware that the company has announced over the last year or so several significant development and manufacturing projects with US based companies. In particular, we are working with Celgene to provide thalidomide capsules for the US market, we are working with Pfizer to develop a new active ingredient and finished dosage form for a new therapeutic substance and we are working with a pharmaceuticals specialist company to develop, test and manufacture a number of finished products. All of these projects rely on IDT's expertise in the handling of highly potent pharmaceutical substances. We are also presently finalising an agreement with another major US pharmaceutical company to supply the active ingredient for a new anticancer drug, currently undergoing international clinical evaluation. This project has the potential, like our other announced projects, to contribute significantly to revenue and profits over the next three to five years. With an apparent return to interest by investors in biotechnology companies and the continuation of significant support through the Commonwealth Government's Commercial Ready Grants Program, IDT is beginning to detect an increase in enquiry levels from smaller Australian-based companies. Frequently these companies have identified possible new pharmaceutical agents that require a rigorous scientific and technical appraisal and development program. IDT has extensive experience in this highly specialised field and has for many years delivered effective outcomes for a wide range of clients. Our CMAX clinical trials unit continues to grow, with several new clients signing up for early stage clinical development work in recent months. As I mentioned in the Annual Report, we announced earlier this year that the CMAX group in Adelaide is being expanded into Melbourne to access the excellent basis of clinical scientists and larger patient and subject populations available in a larger city. The new unit is located in Mill Park to the north of Melbourne, close to the Northern Hospital and in convenient proximity to Melbourne airport. We expect this unit to be fully operational within the next few weeks. In my address at last year's Annual Meeting, I spoke about the new opportunities for the company in the development and supply of finished pharmaceutical products that require the specialised containment expertise and facilities that IDT has to offer. The approval this year by the US FDA of our thalidomide product for Celgene illustrates the potential for this opportunity. The level of interest in this capability is still high and we are presently engaged in discussions with companies in the US who are seeking to access these highly specialised services. Over the past two years, IDT has invested around $5.6 million in new facilities to meet the demand for high containment finished products. In the cases of Celgene and Pfizer, those companies have also contributed dedicated plant and equipment to the expansion of IDT's manufacturing facilities to service their particular technical requirements. I mentioned in the Annual Report that the company's dependence on manufacture of generic APIs has significantly reduced. We continue to supply some select generic APIs but in many ways, the nature of the business is changing with important new work coming from the drug development area. Opportunities continue to be presented to IDT across a range of therapeutic areas. HIV continues to be a major community problem and IDT continues to work with companies who have potential effective technologies to treat or prevent this disease. Even more topical is the threat of an influenza pandemic. IDT is working with companies who are researching both preventative and therapeutic treatments for influenza. Our CMAX division in Adelaide is a key clinical trial site for the evaluation of CSL's new influenza vaccine. Enrolment of subjects in the study has been outstanding. The performance by our CMAX staff will aid CSL scientists to assess the effectiveness of this vaccine in the new year when results from the study become available. As I mentioned at last year's Annual Meeting, the company continues to explore new business opportunities. This has meant a significant focus on internal research & development and plant & design activities in the first half of the 2005/06 financial year. I am confident this investment will allow the company to grow over the next two to three years as new technologies emerge and companies worldwide continue to outsource more and more components of their drug development programs. Again I thank the Board, our management team and staff for their
commitment and service to the company over the past year. Dr Graeme L Blackman Chairman and Managing Director
|