PlasmaSelect AG / Final Results
31.03.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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While recording a decline in turnover for the financial year 2006/2007
(November 30), PlasmaSelect AG, the health sector investee company, also
reports an increase in profit before interest and tax (EBIT).
Group turnover fell from 69.4 million in the previous year to 56.3
million. This is primarily due to the continued competitive pressure in the
infusion and rinsing solution market.
In the previous financial year the share in turnover for Segment Injectable
Generics, which has since been sold, accounted for 22.1 million in 2007,
compared to 28.7 million in the previous year. The decline in sales for
this segment is due to the sale of the segment on October 1, 2007,
contributing for 10 months only to the sales result, while some of the
planned new licence approvals could not be introduced to the market in the
past financial year. This is mainly due to the significant delays by the
regulatory authorities, which caused considerable delay to our entire
schedule for obtaining market approval for new drugs.
The infusion and rinsing solutions segment achieved sales of 28.4 million
in the past financial year. Due to poor business in this segment and
necessary value adjustments to production facilities in the amount of 6.4
million, EBIT for this segment was -15.7 million. With a turnover of
5.7 million, the segment Others recorded an EBIT of -3.6 million.
The EBIT for the Group rose to 9.3 million in the previous financial
year. This represents a year-on-year increase of 26.2 million. Due to the
depreciation of the assets of Rena GmbH & Co. KG, EBIT was considerably
burdened in the financial year 2006.
Sale of segment Injectable Generics
The financial year 2007 required a fundamentally new strategic direction
due to changed market conditions. For the area Injectable Generics we
experienced an increasing price pressure plus the market entry of further,
partly global, competitors in this segment.
Despite generating an excellent EBIT margin of over 20 percent at the time
of the sale, the Board of Directors decided to put the Generics segment up
for sale. In an ordinary auction on October 1, 2007 the sale was finalized
as asset deal with a total purchase price of 75 million. The first
installment of the purchase price was 50 million, plus 5.1 million for
the acquired stock. A further purchase price installment of up to 20
million could be paid upon attaining certain targets within the Generics
segment in 2008/2009. On top of this, 5-year supply contracts for a range
of products could be agreed with the buyer.For the transition period,
additional service contracts over several months were agreed, that will
continue to run into 2008. In addition, the buyer Actavis obligated to
supply products to our subsidiaries in The Netherlands (FarmacoNetwork) and
Italy (AltaSelect).
Structure of the continued business
The remaining consolidated subsidiary DeltaSelect will now focus on the
infusion and rinsing solution business in Germany. It is planned to expand
the portfolio through the acquisition and own licensing of further
complementary products. The remaining international solutions business has
been allocated to AltaSelect, our Italian subsidiary, which now takes care
of the export business for the whole of the Group from Verona, Italy.
The Italian business has not been affected by the sale of Actavis. They
will continue to sell injectable generics, in addition to their existing
portfolio.
Recent restructuring measures
Due to the ongoing immense competitive pressure in the remaining infusion
solutions business, PlasmaSelects Board of Directors has analyzed the
current production structure in cooperation with Roland Berger Strategy
Consultants.
The results of the analysis show that, with the current structure, our
production subsidiary TheraSelect cannot operate a competitive production.
Following the planning after this analysis, PlasmaSelect AGs Board of
Directors were forced to make value adjustments on the existing production
facilities in the amount of 6.4 million and to initiate a comprehensive
business optimization program. These value adjustments, plus the
optimization measures introduced in cooperation with Roland Berger Strategy
Consultants, will enable our subsidiary TheraSelect to operate more
cost-effective in future.
Outlook
The proceeds from the generics business will support and strengthen our
core business infusion and rinsing solutions. This also includes reducing
production costs through optimizing processes and focusing on products at
the respective locations. Appropriate investments have been initiated and
decisions made. The product portfolio will also be expanded and globalized
to facilitate the entry in new markets, in addition to the existing market.
This necessitates establishing a cost leadership for production costs. The
Board of Directors are confident that it will be possible to meet this
objective with the initiated measures. This internationalization will be
supported by targeted product acquisitions and/or cooperations with other
medium-sized businesses. Also planned are acquisitions in interesting new
business areas, even beyond the hospital market itself.
As to the future of the PlasmaSelect Group, the Board of Directors foresees
excellent potential for a positive economic development and new profitable
growth of the Group with the current portfolio and through opening up new
business areas.
The full annual report is available for download at www.plasmaselect.de.
The report on the first quarter 2008 will be published on April 30, 2008.
DGAP 31.03.2008
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Language: English
Issuer: PlasmaSelect AG
Pettenkoferstraße 22
80336 München
Deutschland
Phone: +49 (0)89 810 29-0
Fax: +49 (0)89 810 29-111
E-mail: info@plasmaselect.de
Internet: www.plasmaselect.de
ISIN: DE0005471809
WKN: 547180
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-News: PlasmaSelect AG presents 2007 Annual Report
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