Bioton's cash injection
Days before investors are to place their orders the producer of genetically modified human insulin, Bioton, announced a net profit for 2004 of nearly zł.6 million. Although the net earnings in Q4 virtually equaled zero and the yearly profit was generated in the first nine months, the pharmaceutical's managers published an optimistic 2005 plan. The group is to reach zł.154 million in net revenues against zł.128.7 million last year, which would translate to some zł.28 million in net profit.
Human insulin substitute Gensulin remains the flagship of the company's production and currently accounts for around seven percent of the Polish market, estimated at zł.600 million annually.
Bioton intends to increase its sales to a 17 percent share by the end of this year through price competition with main Western suppliers Novo Nordisk and Eli Lilly. Since February 1, the company has slashed Gensulin's price by zł.16 to an even zł.100. The Ministry of Health consequently reduced the refund on insulin, resulting in a significant rise in the prices of foreign products. Foreign manufacturers refused to follow the lead, and at the same time allegations appeared in the press that Polish-produced insulin might cause negative side-effects and could be less effective than its internationally distributed equivalents. In response, Bioton issued a statement claiming Polish insulin has "bioequal" qualities.
Bioton is also looking to eastern markets and expects its insulins to be registered by the end of Q1 in Russia. Bioton Wostok, a Russia-based daughter company is to generate $10 (zł.29.6) million from local supply tenders across the Federation.
Subscription for Bioton shares (C series) will take place from March 4 to 7, with 12.8 million shares for institutions and 3.2 million for individuals on offer. The company was given the green light from the Polish securities commission last autumn and is scheduled to debut on the Warsaw Stock Exchange by the end of March.
Human insulin substitute Gensulin remains the flagship of the company's production and currently accounts for around seven percent of the Polish market, estimated at zł.600 million annually.
Bioton intends to increase its sales to a 17 percent share by the end of this year through price competition with main Western suppliers Novo Nordisk and Eli Lilly. Since February 1, the company has slashed Gensulin's price by zł.16 to an even zł.100. The Ministry of Health consequently reduced the refund on insulin, resulting in a significant rise in the prices of foreign products. Foreign manufacturers refused to follow the lead, and at the same time allegations appeared in the press that Polish-produced insulin might cause negative side-effects and could be less effective than its internationally distributed equivalents. In response, Bioton issued a statement claiming Polish insulin has "bioequal" qualities.
Bioton is also looking to eastern markets and expects its insulins to be registered by the end of Q1 in Russia. Bioton Wostok, a Russia-based daughter company is to generate $10 (zł.29.6) million from local supply tenders across the Federation.
Subscription for Bioton shares (C series) will take place from March 4 to 7, with 12.8 million shares for institutions and 3.2 million for individuals on offer. The company was given the green light from the Polish securities commission last autumn and is scheduled to debut on the Warsaw Stock Exchange by the end of March.
