Biotechnology company PharmaZen has recorded a million-dollar turnaround in its accounts to report a $445,000 annual profit for the year to December 31.
This compared to a $661,000 deficit for the previous year, the result partly attributed to the successful launch in China of a new haircare product, Collamex.
This helped boost company turnover from $4.47 million to $5.8 million in the year under review.
Chief executive Craig McIntosh said another factor was the benefit of capital expenditure on plant and equipment in 2007, which allowed the Christchurch-based company to increase its production volume without adding significantly to costs.
Sales in dollar terms were up 30% on the previous reporting period, and volume was up 42%.
PharmaZen, an animal and human health product manufacturer, was previously based in Dunedin but moved to Christchurch when it bought another biotechnology company.
Its shares were traded on an unregistered securities trading board.
Mr McIntosh said releasing Collamex in China was the most significant step taken during the year, opening up a new product range and a new market and providing growth opportunities.
A more export-friendly exchange rate during the year provided some relief, and Mr McIntosh said the impact of the global crisis had been minimal so far, with demand holding up.
"This reflects the nature of our market in health care.
"Customers are always reluctant to cease using efficacious treatments for any ailment, but particularly in the areas of joint and bone health, areas where the company specialises," Mr McIntosh said.
