Sydney, Mar 10, 2006 AEST (ABN Newswire) - Life Therapeutics (ASX: LFE) announced today that it has increased its forecast for the FY 2006/07 as a result of a significant expansion and planned expansions in its United States operations.
In late 2005 Life Therapeutics advised shareholders of two new signed contracts which in total increased sales by US$34m for the 2006 calendar year and US$54m per year for the 2007-2009 calendar years. The Company invested over AU$4m during the last 6 months to increase production in order to meet these signed sales contracts. Monthly plasma production volumes have increased from 4,500L per month in September to 20,000L per month in January 2006 and are expected to further rise over the last 6 months of FY 2005/06.
"This reforecast is a direct result of the signed long term supply contracts announced late last year" said Dr. Hari Nair, CEO and Managing Director of Life Therapeutics. "The Company has worked very hard to increase its production capacity since the acquisition of the Pyramid Group in October 2005. In light of the rapid integration of Pyramid into the Life Sera business we are now able to reforecast our projections for the 2006/07 FY" added Dr Nair.
The Company has also reforecast down its FY 2005/06 results as a result of the additional expenditure to increase production for sales in the second half and the impact of AIFRS.
"The Company is in the process of opening 5 new plasma collection centers by June 06 and a further 5 by December 06 in the US to meet the FY 2006/07 sales. This will increase the FY 2006/07 EBITDA to A$24m" said Dr Nair.
Diagnostics Gels Sera Total (after corp. expenses) Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA AU$M AU$M AU$M AU$M AU$M AU$M AU$M AU$M 2006 14 6.5 1 (4.5) 53 1 68 (2.5)2007 24 13 - - 96 19 120 24The above sales figures are based on the signed contracts already advised to themarket. Total EBITDA figure includes corporate expenses.
Disclaimer:
The above figures are management estimates and may be affected by factors outside management control and other non operational issues such as AIFRS.
Contact
USA
Jesse McCorvey
Vice President
Corporate Communications
TEL: +1 404-300-5030
Australia
Prakash Patel
Company Secretary
TEL: 61 2 8977 9000
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