Sirtex delivers positive outlook

Company News

Sirtex (ASX:SRT) made strong progress in 2016, according to CEO Gilman Wong.

In his address to the company's annual general meeting, Mr Wong said global dose sales of its SIR-Spheres Y-90 resin microspheres were up 16.4 per cent to 11,931 units, driven by solid double digit growth in the Americas region and within the Europe, Middle East and Africa region, or EMEA.

"Total reported revenue increased 32 per cent to $232.5 million over the prior corresponding period, and was positively impacted by the depreciation of the Australian Dollar against the US Dollar and Euro," he said. "In constant currency terms, our revenue growth increased 16.9 per cent. Net profit after tax increased by 32.8 per cent to $53.6 million and was in-line with reported revenue growth. Constant currency adjusted net profit after tax increased 17.3 per cent."

Mr Wong said the company was making progress towards delivering its 2020Vision growth strategy.

"Sirtex has now delivered 12 consecutive years of positive dose sales growth and we expect to continue to grow year on year. We have excellent long term growth potential as we are just 2 per cent market penetrated to date, we intend to also expand into new markets and have 3 major clinical studies to report their results.

"We are committed to maximising and realising the potential of SIR-Spheres microspheres, and at the same time consider how best to leverage the capabilities and skills we have generated internally over these years to maximise the potential of the business in the longer term. We have consistently made mention to our shareholders that there are three distinct pillars of our business that are designed to unlock or maximise the potential we have. Expanding the use of our current product, SIR-Spheres microspheres, in both primary and secondary liver cancer and other cancers is our first pillar, research and development the second pillar, and mergers & acquisitions the third pillar."

In terms of outlook, Mr Wong said the company remains in a "very strong financial position" and will continue to expand its core "SIRSpheres microspheres business, globally."

"We anticipate double digit dose sales growth will continue in FY17 whilst we await the results of the three major clinical studies due to report findings in the first half of calendar year 2017. These preparations are well advanced.

"Accordingly, an ongoing investment into sales and marketing, clinical and medical functions will be required to build awareness and drive adoption. This supports long term growth in existing markets, facilitates new market entries and delivers expanded reimbursement for patients."