Cancer treatment developer Sirtex Medical says it has plenty of growth opportunities, after reporting a 47 per cent lift in first-half profit.
Australian-based Sirtex's current lead product, SIR-Spheres Y-90 resin microspheres, is a targeted radiation therapy for liver cancer which involves the tiny radiation-emitting microspheres being implanted around the tumour.
Sirtex, which became a top 100 ASX-listed company in December 2015, says net profit for the six months to December 31 was a record $25.9 million.
The result was driven by 15.7 per cent growth in dose sales of the microspheres, from 4,950 units to 5,728 units. In the prior corresponding period, dose sales grew by 26.3 per cent.
The Australian dollar's lower value against the US dollar and the euro also helped, with more than 95 per cent of SIR-Spheres revenue achieved in foreign currencies.
Manufacturing efficiencies flowing from higher dose sales in the key US market, where awareness and use of the SIR-Sphere microspheres is growing, helped lift margins.
Chief executive Gilman Wong said Sirtex had only penetrated about two per cent of the potential market for SIR-Sphere microspheres.
"Sirtex is very much a growth company, and we still have a long way to go," Mr Wong said on Wednesday.
"The runway of opportunity is large."
The Americas was still the key driver of future growth in dose sales and revenue.
Mr Wong said Sirtex was progressing towards expanding its SIR-Spheres market into China and Japan, but that would take a few years given the difficult nature of penetrating those markets.
In the first half, dose sales in The Americas rose 18.8 per cent to 4,028 units.
The average US dollar price achieved per dose was stable at $US16,000.
Dose sales in Europe, the Middle East and Africa grew by 8.8 per cent, compared to growth of 28.1 per cent a year earlier.
Asia Pacific dose sales grew 9.3 per cent.
Sirtex also said the Journal of Clinical Oncology had published data from its SIRLFOX study, showing the effectiveness and safety of SIR-Spheres microspheres in combination with chemotherapy for patients with colorectal cancer that has spread to the liver.
Sirtex said it continues to investigate the potential uses of SIR-Spheres microspheres to treat cancers in other organs.
Sirtex shares dropped $2.43 to $33.75.
MORE SALES, CURRENCY BENEFITS BOOST SIRTEX PROFIT
* First-half net profit up 46.9pct to $25.9mln
* Revenue up 40pct to $112.6 million
* No interim dividend
Share
