Peptech shares jump on profit expectations
Tuesday, 16 November, 2004
Peptech's (ASX: PTD) share price jumped 26 per cent in the first hour of very heavy trading today after announcing that its net profit in 2004-2005 was likely to be between AUD$18-21 million following the settlement of its dispute with Johnson & Johnson subsidiary Centocor over royalties for Centocor's anti-TNF drug Remicade.
According to the profit guidance statement issued by Peptech, last year's $28.3 million profit eliminated the company's carried forward tax losses, which executive chairman Mel Bridges said would result in significant tax payments on this year's profits.
The company also plans to fully expense its R&D expenditure, which is expected to significantly increase as the company ramps up its anti-TNF programs and cancer programs and performs trials in preparation for seeking regulatory approval in Europe and the US for its canine contraceptive Suprelorin.
Peptech's board of directors will consider the issue of dividends or alternative shareholder returns to increase shareholder value.
At the time of writing, Peptech's shares were trading at $2.04.
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