Profit soars for cancer treatment maker

Cancer treatment developer Sirtex has lifted annual profit by 69 per cent and expects its sales to continue to rise.

Strong global demand for Sirtex's liver cancer treatment has delivered a massive profit boost for the biomedical firm.

An increase in the cost of the therapy and favourable currency movements also contributed to a 69 per cent rise in annual profit to $40.3 million.

Global sales for Sirtex's targeted radiotherapy treatment for inoperable liver cancer rose nearly 20 per cent.

The treatment was developed in Australia in the 1980s and involves the injection of radioactive beads into an artery, delivering them straight to tumours in the liver where they attack cancerous cells while sparing healthy tissue.

The product is sold in more than 40 countries, and annual sales have consistently risen by 19.7 per cent in the past five years, chief executive Gilman Wong said.

"This is another strong result off the back of consecutive years of growth," he said.

"We are in a very strong position to continue to grow as there is a large unmet global medical need for our liver cancer therapy."

Mr wong said the company has penetrated less than two per cent of the "addressable" global market.

Sirtex shares gained $2.91, or 9.7 per cent, to $32.94.

Motley Fool Australia research analyst Scott Phillips said Sirtex was benefiting from a stronger US dollar, but its product will continue to drive profit growth.

"Sirtex has also benefited recently from clinical trials which demonstrated that their treatment is a very attractive product," he said.

"It used to be used as a last stage liver cancer treatment but it has since moved further up the treatment protocol which means it should continue to have strong growth for years to come."

Sirtex is also researching the potential to expand the use of the therapy to treat tumours in other organs, including the kidney.

SURGING SALES BOOSTS SIRTEX PROFIT

* Full year profit up 69pct to $40.35m

* Revenue up 36pct to $178m

* Fully franked final dividend up 6 cents to 20 cents


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Source: AAP


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