A 72% boost in sales has turned around the full-year profitability of Dunedin-founded biotech company PharmaZen by $1.5million.
For its year to December, PharmaZen's revenue rose from $7.3million a year ago to $12.5million, and its after-tax result rose from a loss of $285,704 to a $1.28million profit.
PharmaZen is a developer, manufacturer and marketer of science-based, natural nutritional ingredients.
PharmaZen shares trade on the Unlisted platform, and were trading yesterday at 11c, giving the company a market capitalisation of $24.1million.
Now Christchurch-based, PharmaZen chief executive Craig McIntosh said the level of demand for both new and existing products was "exceptionally pleasing and well exceeded expectations".
"This future growth will continue to be supported by capital and marketing investment as appropriate opportunities present," he said in a statement.
A capital raise done in late-2017 provided the funds required to accelerate the completion of several major capital expansion projects, costing $7.55million, during the first six months of 2018.
The projects included the expansion of production facilities by 1000sqm, increasing freeze drying capacity by 75%, commissioning a specialised solvent extraction facility, gaining regulatory licences and issuing a patent.
"Another significant new initiative is the move to finished products, consumer-ready retail packaged nutritional supplements," Mr McIntosh said.
For fast developing markets, such as China, product origin, traceability and provenance was a "challenge".
"We foresee a significant opportunity for a 100% New Zealand-made and New Zealand-sourced product range in these [developing] markets," he said.
One new product being launched shortly, AiOra, is an extensive range of animal, marine and botanical ingredients to target health issues, ranging from digestive and cognitive function to bone and joint health, he said.
