Press Release
20.12.2007
Analysts recommend biolitec stock: Fair value is over 20 Euros
Product innovations and sales campaigns in the US as growth driver - biolitec stock has reached an interim high of over €18.00 - influx of liquid assets in the amount of ca. €7M from a cash increase in share capital - sustained high profits in the business segments of lasers, disposables and aesthetics expected in the coming months
Jena, December 20, 2007 - www.biolitec.de - biolitec AG in Jena is seen as a company with very good performance by financial experts at RedHerring and Concord Investmentbank AG in Frankfurt in their recent research report. Total sales by the company in the 1st quarter of 2007/2008 of €9.3M, significant expansion of its installed equipment base (fraction of total sales: 34%), a disproportionate increase in sales in the US market (+56%) as well as a doubling of EBIT (+109%) to €1.7M, and liquid assets of currently €11.2M were the numbers evaluated in the current study by the financial institute.
Continuous investment in research and development - at 15% of sales, biolitec's R&D investments are twice as much as the German industry average - resulting in continuous product improvements in the area of laser treatments and aesthetics, such as the innovative ELVeS™ PainLess system for the painless removal of varicose veins, which was introduced in November at the MEDICA trade show. Also, the LIFE Laser for out-patient treatment of benign prostate hyperplasia (BPH) is one of the novel products of 2007, which will bring a further increase in sales to biolitec for the coming fiscal quarters as a result of increased sales of laser equipment for vein and prostate treatment (+60%). In addition, beginning in 2008 it is expected that urology laser treatment will become a reimbursable expense paid by insurance carriers in Germany, Austria and Hungary.
In the US, biolitec AG is further expanding its strong market position in the area of lasers and photosensitizers. The reason for this growth is the strong demand for the LIFE lasers for BPH treatment. Over 100 devices have already been used in the US since the beginning of the year. The successful marketing strategy - partnerships with rental companies and transforming prostate treatment from clinic-based treatment to private medical practice - is currently also being implemented in Germany. biolitec intends to place 60 BPH laser devices next year throughout the country.
The marketing and development partnership concluded in the fall of 2007 with foreign pharmaceutical companies for the cancer medicine Foscan, which is approved for use in Europe, has shown new growth potential for the future, and will relieve the cost structure of the company at the same time.
As a result of a cash increase in share capital, biolitec has raised funds in the amount of nearly €7M. The company intends to use the money to further expand the marketing department, in particular in the US, and to carry out further R&D projects next year. This will allow to strengthen the successful business trend of the last few quarters.
About biolitec
biolitec is the only supplier for photodynamic therapy worldwide that offers all relevant core competencies – photosensitizers, lasers and optical fibers. Besides minimal invasive laser treatments and the oncology business biolitec has successfully developed competencies in the field of aesthetics. biolitec is listed in the Prime Standard under ISIN DE0005213409. For more information: www.biolitec.com .
