IDT posts profit record number eight

Australian drug discovery company International Drug Technologies (IDT) has announced a record 14 per cent jump in full year net profit to $4.2 million.

And on the back of the news, the company forecast that its recent acquisition of clinical research services company CMAX would ensure similar growth over the coming 12-month period.

"It is very pleasing for the directors to be able to report another record year of profit for the company," said chairman and managing director Dr Graeme Blackman. "Increasing record profit results have now been reported for the company every year over a period of eight years."

The company said that the manufacture of selected active pharmaceutical ingredients (APIs) continues to make a significant contribution to profits, with the company recently gaining FDA approval for manufacture and sale of six products in the US.

Blackman said that the CMAX acquisition of late June would be a key driver for IDT going forward, as it paved the way for the company to achieve full integration across its drug development businesses. He said that with phase one of the CMAX unit bolted onto IDT's existing drug development capability, the company now had a well set-up facility.

"The CMAX acquisition is the most noteworthy thing in these results; we hope it will be the driver going forwards," he said.

IDT completed its acquisition of CMAX from Mayne Pharma in June this year. The business runs from Royal Adelaide Hospital and provides FDA-audited clinical research services for the pharmaceutical and biotechnology industries.

Blackman said CMAX was a major feather in the cap of IDT, which had already distinguished itself as just one of a few Australian biotech companies to report strong results during the current climate of financial uncertainty. "The fact that we are showing strong growth in profits and dividends during such a difficult year should send a positive message to investors," he said. Blackman also confirmed that the company would pursue further acquisitions appropriate and beneficial to the company. "We are in a climate of uncertainty and it is important that we are patient and wait until markets find their level," Blackman said, adding that a "rational" approach to company valuations was especially important at the moment.

"I think that it is important to see our sector reporting good results, although there are not many yet."

Directors declared a fully franked final dividend of three cents per share - a 25 per cent increase in total dividends for the year - payable on 29 November 2002.