Chi-Med unveils maiden profit

Published on Thursday 30 July 2009 21:48

HUTCHISON China MediTech (Chi-Med) – the drug development and Chinese medicine company run by Scot Christian Hogg – yesterday reported its maiden operating profit.

Group sales grew by 23 per cent to $56.7 million (34.4m) in the year to 30 June, while Chi-Med posted an operating profit of $600,000, compared with a loss of $3.8m in 2008.

Operating losses at the group's drug research and development division narrowed from $8m to $5.2m, while the business reporting "encouraging" results from a phase two trial of a drug for the gastro-intestinal complaint, Crohn's disease.

Sales in the group's China healthcare division, which sells traditional remedies in the country, rose by 23 per cent to $53.1m, with operating profit up 31 per cent to $9.5m. But Sen – Chi-Med's consumer products division, which sells Chinese products in London and France – reported a 12 per cent drop in sales to $1.7m.

Hogg, who hails from Peebles, said: "Chi-Med has again performed strongly, and we are confident it will continue to do so. Delivering our first group operating profit and positive cash flow are further milestones.

"Sen has done well in a very tough retailing environment in the UK and its performance is masked by the weaker pound."

Shares in the Aim-listed group closed up 2p at 80.5p.