SciVision Biotech Inc (科?), which makes hyaluronic acid for use in plastic surgery and the treatment of degenerative joint diseases, yesterday said it plans to raise between NT$600 million and NT$800 million (US$20.4 million and US$27.2 million) to build a new factory.
The Greater Kaohsiung-based company said it plans to invest NT$480 million by the beginning of next year to build a new factory in the municipality capable of producing 2.51 million vials of hyaluronic acid a year.
The factory is expected to be completed by the end of 2015 and the company estimates that the revenue it generates will cover construction costs in 2.77 years.
Currently, SciVision Biotech operates one factory that is capable of producing 500,000 vials a year and which had a utilization rate of 83.95 percent last year, it said.
SciVision Biotech, which is set to shift its listing to the main bourse from the over-the-counter market on Nov. 12, said that it is also applying for permits to sell its products in the US.
SciVision Biotech general manager Han Tai-shien (韓台賢) said the company expects its revenue to increase 35 percent this year from NT$200.68 million a year ago, with overseas sales accounting for 50 percent of its total revenue this year, compared with 29.94 percent last year.
The company expects revenue to increase by 35 percent next year, Han said.
Last year, sales of its Hya-Dermis product, which is used for plastic surgery, accounted for 55.23 percent of total revenue, while sales of Hya-Joint, which is used for treating degenerative joint diseases, accounted for 35.23 percent, according to data provided by the company.
“The company swung into the black in 2011 after we acquired drug permits for Hya-Dermis in 2010 and for Hya-Joint in 2009 in Taiwan,” Han said.
“We enjoyed 116 percent revenue growth in 2011, 40 percent revenue growth last year and 35 percent revenue growth in the first six months of this year,” he added.
Citing data from research and consulting firm GlobalData and market researcher Millennium Research Group, the company said that the global market value of hyaluronic acid used for plastic surgery was US$808 million last year, a compound annual growth rate of 12 percent.
The data also showed that the market value for hyaluronic acid used for degenerative joint diseases was US$1.8 billion worldwide last year, with a compound annual growth rate of 7.5 percent.
SciVision Biotech reported a 17.39 percent increase in net income in the first nine months, reaching NT$16.2 million from the NT$13.8 million it posted a year ago.
The company’s revenue totaled NT$149.75 million in the first nine months, up 19.96 percent from the NT$124.84 million it recorded last year, data showed.