PanBio profit punt on US virus test

www.dailytelegraph.news.com.au By Scott Murdoch 25feb03

QUEENSLAND medical technology company PanBio is basing its hopes of reversing yet another poor result on the success of its new diagnostic test for a mosquito-transmitted virus in the US. The Brisbane-based outfit revealed yesterday it recorded a net loss of $577,000 for the first half – a better outcome than the $1.27 million loss in the previous corresponding period.

Jim Porter, appointed chief executive officer three weeks ago, has a massive task in pulling the company back into the black but is confident it can turn around within the next 12 months.

PanBio's interim revenue from ordinary activities also fell to $8.43 million, from $8.53 million a year earlier while its borrowing costs jumped from $127 million to $172 million.

No dividend will be paid and earnings a share dropped from a loss of 2.48¢ to 1.13¢.

An appreciating Australian dollar and lack of demand for dengue fever diagnostics in Brazil and Venezuela, Mr Porter said, contributed to the poor result.

PanBio expects the new test for the West Nile virus in the United States to start delivering profit in the year ahead.

"There has been a lot happening in a year-on-year comparison," Mr Porter said.

"I think we will achieve the growth in the next year that we have been pursuing for some time."

PanBio has recently undergone a management shake-up.

This included the appointments of Dr Stuart Hazell as vice-president of research and development and Nicholas Thliveris as vice-president of strategic marketing.

PanBio shares remained steady at 75¢ yesterday.