Panbio (PBO) -In the black?

[tommy]

I have been looking for cheapo biotechs with some potential next year and stumbled across Panbio Ltd (PBO). It develops, commercialises and markets a range of medical diagnostic kits used by hospitals, pathology laboratories, general practitioners and research institutions to test for infectious diseases. PBO has more than 60 diagnostic tests for more than 27 infectious diseases including Dengue fever, Ross River fever, glandular fever and whooping cough. As at 30 June 2004, the company supported over 120 clinical laboratories in Australia, Asia, the Americas, Europe, the Middle East and Africa.

http://www.panbio.com.au/

http://asx.netquote.com.au/charts.asp?code=pbo&x=0&y=0

What caught my attention was that in the latest quarter, PBO turned cash flow positive (Net operating cash flows were positive $1,115,000, receipts from customers amounted to $4,619,000) after recording preliminary revenues of AUD$ 14.53 million and a net loss after tax of AUD$1.7 million for the 2004-2005 financial year.

May be worth keeping an eye on this next year, anyone else interested in this company? Is there anything I should be aware of? (Have not researched much yet!)

Annual Report
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=171983

Executive Chairman's Address 2005 AGM:
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=172976

Presentation - Business Update:
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=172016

Panbio Secures TGA Licence for New Facility
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=171733

Achievement of Homogeneous Assay Milestone 1
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=171487

Fights Japanese Encephalitis Outbreak with new test
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=170433

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About Panbio

Established in 1988 and listed on the Australian Stock Exchange in 2001, Panbio Limited is an Australian-based international diagnostics company. With a mission of �gbetter tests for more people�h, the Company develops, manufactures and markets innovative diagnostic tests to aid in the diagnosis of infectious disease. The Company is recognized as a world leader in tests used in the diagnosis of flavivirus and other arthropod-borne viruses

With a product portfolio covering over 27 infectious diseases, the company supports pathology laboratories and physicians in Australia, Asia, the Americas, Europe, the Middle East and Africa.

Panbio has a history of market leadership in response to diseases that afflict millions of people and was �efirst to market�f with diagnostics for dengue fever, Ross River fever and West Nile encephalitis.

Its range of technical platforms includes enzyme-linked immunosorbent assay (ELISA), indirect fluorescent antibody test (IFA) and rapid lateral flow devices.

The Company�fs strategic partnerships include customers, distributors, other manufacturers and some of the world�fs leading research organisations.

In the past year, Panbio received US FDA clearance for its second generation West Nile virus test, received the first orders for its new Dengue �ePoint of Care�f cassette and signed research agreements to develop improved diagnostics for Japanese encephalitis, leptospirosis and malaria.

In research, Panbio is pursuing two significant improvements in the development of in vitro diagnostic assays.

The first involves a two-year project to develop a novel homogeneous assay for the diagnostics market. If successful, clinical diagnostic tests that currently require up to three hours will be processed in a matter of minutes #8211; a dramatic breakthrough by Panbio.

The second involves the Company�fs patented Oligo Rapid System and is aimed at the �ePoint of Care�f market. The Oligo technology provides the capability for multiple diseases to be diagnosed on a single patient sample while reducing the overall cost of manufacture.

With a talented team of scientists and business people, a history of �gworld firsts�f and a strong and growing customer basis, the Company is well positioned to deliver

[tommy]

As expected, now PBO is cash-flow positive due to strong growth in revenues. I'm considering buying a small batch now...

Half Yearly Report & Half Year Accounts
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=174895

Media Release - Half Year Results
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=174896

Shareholder Newsletter
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=174898


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STRONG SALES DRIVE PANBIO PROFITABILITY

28 February 2006, Brisbane, Queensland Australia: Australian-based
international medical diagnostics company Panbio Limited has today reported a encouraging half-year profit of $164,000 on revenues of $8,464,000 for the six months to December 31, 2005.

The profit performance caps a major turnaround from a loss of $972,000 in the corresponding period last year and is the first half-year profit recorded by the company since listing on the Australian Stock Exchange in April 2001.

Paul Nitz, Panbio chief executive officer, said one of the most pleasing aspects of the result was the profitability of Panbio�fs manufacturing operations, which produced earnings before interest, tax, depreciation, amortisation and net research and development expenses (EBITDAR) of $1,104,000 or 13% of revenue which was more than double that of the corresponding period last year.

He said the company�fs overall strong EBITDAR result was due primarily to growth in sales revenue, which was up $1,216,000 or 17% for the half-year. This is Panbio�fs best half-year revenue result since the half-year to June 2002.

�gThe period also saw a 39% increase from $832,000 to $1,153,000 in our
expenditure on research and development, primarily on the Homogenous Assay project, which is progressively achieving its milestones,�h he said.

In October 2005, Panbio reported the achievement of the first milestone of the Homogenous Assay program, bringing the potential ground-breaking technology one step closer to commercialisation. Panbio�fs Advanced Technologies research team completed the selection, development and validation of the enzyme fragments that form the backbone of the Forced Enzyme Complementation system necessary for the development of a homogenous diagnostic assay.

Panbio also continues to drive the development of its other Advanced Technology, Oligo Rapid lateral flow technology. In February 2006, Panbio�fs USA subsidiary, Panbio Inc., was awarded a Phase 1 Small Business Innovation Research grant by the US Department of Defence for the development of a multiplex assay for agents of infectious disease based on Panbio�fs patented Oligo Rapid lateral flow technology.

The company�fs total research and development expenditure on the Homogenous Assay and Oligo Rapid projects during the half-year was $765,000.

Mr. Nitz said cash flow from operations was positive $1,351,000, compared to a negative cash flow of $241,000 for the same period last year. He noted that Panbio had significantly strengthened its cash position during the half-year, as a result of sustained positive cash flow from operations, as well as from the proceeds of the sale of the company�fs former Windsor facility. As at December 31, 2005, Panbio
had cash reserves of $3,969,000.

During the period, Panbio successfully transferred its manufacturing operations from Windsor, to its new state-of-the-art premises at Sinnamon Park and was granted its TGA Licence in October 2005.

There were major changes to Panbio�fs Board and senior management during the period. The Board Transition Plan, announced in October 2005, is now complete with the appointment of two new independent directors and a new Chairman, former Queensland Governor, Major General Peter Arnison, who took up the chairmanship of Panbio in February 2006. Mr Paul Nitz took up his appointment as CEO in December 2005 and Mr Peter Burrows was appointed CFO and Company Secretary in February 2006.

Major General Arnison said the company�fs solid half-year result was very pleasing, setting the foundations for Panbio�fs future growth, and indicating tha

[tommy]

Time to shake off the dust from Panbio (PBO)...

Now that PBO is generating a modest profit, I think this is a very good takeover target considering its small cap (15 million) and its drug portfolio.

The biotech sector is now entering a consolidation phase as demonstrated by Gropep (GRO, already taken over[:p]) and Alchemia (ACL, though a bit of trouble(?) lately with marketing partner APP after takeover of Meditech).

PBO is retaining its manufacturing operations in the US, which should help in terms of exposure to American pharma companies who might be interested.

Do your own research[:I]

Media Release: 2006 Results
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=180468

Preliminary Final Report & Full Year Accounts
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=180467

To Maintain Manufacturing Presence in U.S.
http://stocknessmonster.com/news-item?S=PBO&E=ASX&N=180301