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Financial Analysis Pierre Mouy March 2010. Company Overview. Biota Holdings is a Pharmaceutical company engaged in anti-infective drug R&D, and its commercialization to treat respiratory diseases, particulary Influenza. - PowerPoint PPT Presentation
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Financial AnalysisPierre MouyMarch 2010
Company Overview Biota Holdings is a Pharmaceutical company engaged in
anti-infective drug R&D, and its commercialization to treat respiratory diseases, particulary Influenza.
Biota’s blockbuster product , Relenza, 1st in class NAI is marketed by GSK.
R&D activities focus on the development of drug candidates for the treatment of :
HCV infections RSV infections HRV infections
The company has several partnerships with Pharmaceuticals such as:
Company snapshot In 2010 Biota Holdings Ltd operates with 3 subsidiaries
Biota Holdings Limited
Biota Scientific Management Pty
Ltd
Biota Investments
Pty Ltd
Biota Respiratory
Research Pty Ltd
Prolysis Limited
UK ( 2009 )
NuMAX Pharmaceuticals Inc USA
(2001)
Maxthera Inc
USA ( 2009 )
Company snapshot
Biota’s Headquarters in Melbourne, Australia 34 Employees estimated
Mr Peter Cook
CEO Managing director
Since 2005Dr James Fox
Chairman since 2009
Dr Simon Tucker
Vice PresidentResearch
Since 1997Dr Leigh Farrell
Vice PresidentBusiness DSince 2006
Dr Jane RyanVice
PresidentProduct D
Since 1997
Dr John LambertExecutive director
Since 2002
Company snapshot Biota Holdings floated on the Australian Stock Exchange
( ASX ) 2006 Biota admitted to the S&P/ASX 300 index Biota datas:
174 m shares for a AUD $324 m Market Cap
20 Largest shareholders
for 42% equity
Financial performance The Company reported:
Financial year end June Revenues of $60.56m during the fiscal year ended
June 2009, increase of 54.11% over 2008 Net Profit of $38.18m in 2009, whereas Biota
reported a net loss of 6.49m during 2008
Financial report Biota Holdings Limited
Income StatementsFor the year ended 30 June 2009
Others incomes : $22.776 m ( suit GSK )Total Revenues : $83.334 m
Financial report Biota Holdings Limited
Expenses StatementsFor the year ended 30 June 2009
Financial report Biota Holdings Limited
Income/Expenses Statements
For the year ended 30 June 2009
R&D
Financial report Biota Holdings Limited
For the year ended 30 June 2009
Total Revenues : $83.334 m Total Expenses : $ 41.517 m
R&D : 42% Revenues Litigation : 12% Revenues Salaries : 7.10% Revenues Sub-royalty : 7% Revenues Finance cost : 0.2% Revenues
R&D
Biota Holdings Limited Balance sheets
Strong cash position ~ $86.7million ~ 1.43 x Incomes ~ 1 year ½ available
Total equity ~ $97 million
Financial reportFor the year ended 30 June 2009
Financial report Biota Holdings Limited
Balance sheets
Total Assets ~ $111,629 million
Total Liabilities Total equity ~ $ 97,032 + Liabilities ~ $ 12,454 = ~ $111,629 million
Assets = Liabilities
Financial position Analysis Biota Holdings Limited vs Pharmaceuticals &
Healthcare sector (Oz) during the period 2005-2009 100.61 % Annual growth rate , 11.8% above the average sector
3 kinds of ratios for the fiscal year year 2009: Profitability ratios:
69.05 % operating margin OM , 18.5 % above the average sector 39.4 % return on equity ROE , 16.1 % above the average sector
Operating costs ratios: 31 % operating costs (% sales) OP over 5 years
Liquidity ratios: 7,6 % current ratio CR over 5 years
Profitability ratios To assess the Biota’s ability to generate earnings
based on Revenues
69.05 % operating margin , 18.5 % above the average sector OP used to mesure the Biota’s
Pricing strategy &
Operating efficiencyOM =
(Operating Income/ revenues) * 100
Profitability ratios To assess the Biota’s ability to generate earnings based
on Ressources used
39.4 % return on equity , 16.1 % above the average sector OP used to mesure the rate
Of Return on the
Shareholder’s equity
ROE = (Net Income/Shareholders
Equity) * 100
Operating cost ratio Operating costs :
To understand the costs the company is incurring as % of sales 31 % operating costs (% sales) OP in 2009
Operating cost = (operating expenses/Revenues)
* 100
2005 2006 2007 2008 2009Op costs(% sales)
502,86 181,50 68,08 123,69 30,95
Liquidity ratios Current ratio ( absolute ratio )
Current ratio 2009 = 7,61 Used to determine the Biota ability to pay off its
short-terms debts obligations ( the highter the value ratio is, the larger the margin
of safety biota would possese to cover short term debts)
( if ratio = 1 near Bankruptcy !! )Current ratio=
(Current assets/Current liabilities)
2005 2006 2007 2008 2009Currentratio
6,29 4,93 5,27 3,33 7,61
Stocks Analysis S&P/ASX 300 , in the Intersuisse Biotechnologies Index Market capitalisation ~ $324m Shareholders ~ 13,300 Total shares ~ 174m
Stocks Analysis
2.24
Bird Flu
Rumour
11 Aug 2005
Inside Traders wave
+ 30,6%
Mediatization+ 312,65%10/10/2005
Nov 2005French order9m courses
April 2006US defense
order5,5m courses
Jul 2006US order
16m courses
First Profitabilit
yannounce
d
Swine Flu
Rumour
24 April 2009
Inside Traders wave
+ 31,34%
Mediatization+ 296,32%27/04/2009
Open gap
24/10/2009
Mars 2009
Nasdaq biotech
PER Capital market ratio: Mesure of the price paid for a share relative to the
annual income earned per share. PER (Price earning ratio) = 9,66 ; vs 11,4 Aussie sector
average
Capital management : $20m return to shareholders in Dec 2009 ! 1st time
since 1985 ~0,12 cents per share dividend ~ significant
Stocks Analysis
SWOT AnalysisStrengths Weaknesses
Strong In-house Research capabilities
Flagship Product: RelenzaStrong Financial Position
Business Concentration: Aussie
Limited InvestorConfidence
Opportunities Threats
Significant CollaborationsMarket Potential: HCV
Emerging Markets
Competitive PressuresGovernment RegulationsUncertain R&D Outcomes
THE ENDReferences:
- Annual report 2009
- Global market directs
- Business week- Intersuisse- Euronext- Google fiinance- biota website
