ots Ad hoc-Service: Girindus AG <DE0005880405> Girindus: Focus on API Production
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Girindus: Focus on API Production
Girindus AG announced today that it is refocusing its strategy on the more profitable business of process development, scale-up and the manufacturing of Active Pharmaceutical Ingredients (API's). As a result, the company is expecting a turnover of approx. DEM 26 million for the current fiscal year. As compared to 1999, the reduction in turnover of approx. DEM 9 million is due to the transfer of business activities and to a weakened demand for intermediates. The shift in focus on API's instead of on less profitable synthetic intermediates and plain trading activities is expected to yield increases in turnover and earnings which in the long term, will exceed previous projections. A first success resulting from the strategic refocus is demonstrated by an increase in API turnover which will amount to approx. DEM 15 million during the current fiscal year and therefore account for 60% of the total turnover.
An operative reorientation is attainable on short notice since the company fulfills all conditions necessary in order to further capture the lucrative API market successfully. In addition, valuable resources will be freed by the reduction in plain trading activities, most of which was not pharma-related. This includes a necessary and already existent infrastructure, e.g. capacities for quality assurance and quality control that can be employed in a more profitable manner for the production of API's.
The Girindus API production facilities have been successfully inspected by the FDA several times, thereby illustrating the high standards of quality underlying its cGMP Production and Scale-up Center. Completion of the construction of a new laboratory building at the Künsebeck facility in Halle - Westphalia as well as the current acquisition of development and pilot facilities from Aventis in Cincinnati, Ohio, will further substantiate the major potential for growth which in turn ,will help to increase the dynamics of the Girindus API business starting in 2001.
The announced dip in turnover for the current fiscal year is the result of longer and more complicate development and production lea times for API's since they require complex analysis and comprehensive technical processing. Numerous API-projects which were acquired in 2000 can only be invoiced in 2001. The turnover shortfall in the area of intermediates and trading for 2000 will be partly compensated by earnings stemming from API projects concluded in 2000. Due to a DEM 3 million increase in R & D spending Girindus will not be able to avoid incurring a loss for 2000. The net loss for the year in accordance to US-GAAP will amount to approx. DEM 5 million. Previous turnover and earnings projections for the year 2000 will thus be applied to the year 2001.
Girindus (Girindus AG: Neuer Markt, Frankfurt/Germany: GIR, Share ID Number 588040) is a unique technology-driven company offering the biopharmaceutical industry comprehensive skills including process R&D, c-GMP complaint Scale- up and production facilities, as well as regulatory assistance. The Girindus Scale -up and production center at Halle-Kuensebeck in Westphalia, Germany, has already been successfully inspected by the FDA several times. For more information please visit www.Girindus.com Contact: Girindus AG Barbara Scharte, Investor Relations Manager Telephone: ++49 2204 926 934 Email: bscharte@girindus.com
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