Progen Reports Solid Financial Performance
August 27 2004 - 12:53AM
PR Newswire (US)
Progen Reports Solid Financial Performance BRISBANE, Australia,
Aug. 26 /PRNewswire-FirstCall/ -- Progen Industries Limited
(NASDAQ:PGLAFNASDAQ:ASX:NASDAQ:PGL), a progressive Australian
cancer drug development company, lodged its Appendix 4E preliminary
final report to June 30th, 2004. The Company completed the
financial year with a solid financial performance reflecting
concerted capital and resource management and a cash/cash
equivalent balance totalling $14.3 million, up from $12.0 million
last year. The increase in cash reserves was made possible by a
private placement in November 2003 and the subsequent ongoing
exercise of shareholder and employee options following strong share
price performance. The proceeds from the divesture of the Life
Science Division in November 2003 also contributed to the cash
balance. Excluding the increase in demand for PI-88 manufacture for
clinical trials, contract manufacturing revenue has grown 8.6% year
on year. Gross margin as a percentage of revenue doubled from 15.4%
to 31.4% primarily due the more efficient use of labour resources.
However, revenue growth from contract manufacturing going forward
maybe mitigated somewhat due to the expected increase in PI-88
production requirements for the foreseeable future as both the
Company and Medigen expand recruitment into respective PI-88
clinical trials. Progen's Managing Director, Lewis Lee commented
"Whilst the company is pleased to report a regulated cash burn of
$5.3 million, which has allowed us to finish the financial year
with a solid cash position, it is recognized that strategic company
growth will require continued diligent application of capital. The
contract manufacturing division is to be commended for their
stand-alone contribution, again increasing revenue and profit
margins while accommodating the increased demand for PI-88
production requirements. "Several major milestones have been
reached in our PI-88 clinical development program, including the
successful completion of two Phase I trials and one Phase II trial
and the launch of three new Phase II trials covering 20 medical
centres across three countries. Expectations are high, as we hone
our focus on the recruitment into the PI-88 Phase II clinical
program in parallel with a PI-88 partnership drive. In addition, we
are actively screening for potential new in licensing candidates in
order to bolster the clinical pipeline, in tandem with in house
drug discovery efforts to develop future clinical candidates,
thereby setting the company up for the next stage of growth."
DATASOURCE: Progen Industries CONTACT: Sarah Meibusch of Progen
Industries, +61-7-3273-9100, or
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