Peptech shares jump on profit expectations

By Melissa Trudinger
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.

Related News

Mouth bacteria linked to increased head and neck cancer risk

More than a dozen bacterial species that live in people's mouths have been linked to a...

Life expectancy gains are slowing, study finds

Life expectancy at birth in the world's longest-living populations has increased by an...

Towards safer epilepsy treatment for pregnant women

New research conducted in organoids is expected to provide pregnant women with epilepsy safer...


  • All content Copyright © 2024 Westwick-Farrow Pty Ltd