Fri, Sep 21, 2018 - Page 12 News List

GBC wins new contracts, nears break-even point

DIAGNOSTICS:Three new overseas contracts should provide General Biologicals with steady revenue over the next two years, its president said

By Ted Chen  /  Staff reporter

General Biologicals Corp (GBC, 普生) yesterday said it is near its break-even point, having secured three foreign contracts to supply medical diagnostic testing kits.

The three contracts, valued at about 10 percent of the company’s annual top line, are expected to provide the company with steady revenue over the next two years, GBC president Frank Lin (林孟德) said at a news conference yesterday.

HEPATITIS

The company makes testing kits for hepatitis A, B, C and D, as well as HIV, which are sold to blood banks and medical institutions across the globe, in addition to in vitro companion diagnostic devices and services.

The company’s efforts at cost optimization have begun to pay off, which led to an improvement in profitability during the first half of this year, Lin said.

Gross margins rose from last year’s 43.11 percent to 51.25 percent at the end of June, he added.

The company’s hepatitis D testing kit has a lot of room to grow as it has just received regulatory approval in Taiwan in January, he said.

While hepatitis D remains the rarest of liver diseases, physicians often recommend hepatitis B patients to undergo National Health Insurance-covered hepatitis D screening to prevent further disease progression.

GBC is also expecting growth for its oral and feminine care products based on the P113 anti-microbial peptide.

SALES CHANNELS

The company has continued to expand sales channels for its own-brand oral care products, as well as higher revenue contribution from its original design manufacturing partnerships with Chlitina Holding Ltd (麗豐), which makes and sells beauty and cosmetic products through its salon franchise in Taiwan and China.

The company last reported that revenue during the first half rose 27.32 percent to NT$158 million (US$5.13 million), while gross profit surged 73.94 percent annually to NT$63.07 million.

Cumulative losses were NT$22 million at the end of June.

GBC this month gained the Ministry of Economic Affairs support to hold an initial public offering for its move from the Emerging Stock Board to the Taipei Exchange next year.

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