Germany's Biotest On New Products, JVs Acquisition Trail

German pharmaceuticals and diagnostics producer Biotest AG says that,after a year of strong growth, it is now aiming at double-digit expansion based on foreign business. Profits are targeted to rise at above-average rates following recent growth of 23%-25%.

These results will be achieved, Biotest says, through new products, acquisitions and joint ventures. However, owing to the postponement of a major contract, first-half 1997 sales remained below forecasts, though profits were on target. Bottlenecks in production and distribution have been countered with the introduction of a six-day week and an increase in contract manufacturing, the firm notes. In the medium-term, the company plans to build a new production plant in Dreieich at a cost of some 50 million Deutschemarks ($28.5 million), which will be put into operation in 1999.

Group sales went up 10.7% last year to 341 million marks. Growth in Germany was only 3.1%, but foreign business expanded by 16.8%. Operating profits growth easily outpaced that of sales, rising by 45.1% to 28.3 million marks. Pharmaceuticals accounted for 224.6 million marks of total 1996 sales and posted growth of 16.5%. Diagnostic turnover went up 1.1% to 116.4 million marks. It is expected that diagnostic sales will double in the period to 2001, with at least half of this expansion coming from acquisitions.