A solid 2014-15 result from drug group Sirtex (SRX) which yesterday revealed a 69% jump in net profit and sharp jump in final dividend.
As a result the company’s shares scooted higher, closing up more than 9.7% at $32.74.
Revenue jumped 35.6% to $178 million.
Sirtex revealed net profit of $40.3 million for the year to June 30, up from $23.9 million a year ago and thanks to strong demand for its liver cancer treatment.
The dividend was lifted 43% to a full franked 20 cents a share, from 14 cents paid in 2013-14.
SRX 1Y – Sirtex shares higher on full year profit
Sales of its targeted radiotherapy treatment for inoperable liver cancer rose by just on 20% in the year top June and directors are expecting more growth in 2015-16.
“Our business outlook in all markets remains positive and is driven by the large unmet global medical need for our liver cancer therapy,” chief executive Gilman Wong said in a statement.
He added that the company has penetrated less than 2% of the "addressable" global market so far.
Mr Wong said price rises in key markets, favourable exchange rates (the weak Australian dollar) and controlled growth in operating expenditures contributed to the strong full year results.
The group is also researching the potential to expand the use of the therapy to treat other organ tumours, including bowel and kidney cancers.
Sirtex said it had nearly $74 million in cash on hand at the end of June, up 40% over the year.
