Sirtex profit grows 58% in 1H15

Sirtex Medical (ASX:SRX) grew its net profit for the half-year ending in December by 58.1% to $17.7 million, on the back of higher sales of its SIR-Spheres targeted radiation therapy product.

Global dose sales of the liver cancer treatment grew 26.3% year on year to 4950 units. Revenue from these sales increased 37.3% to $80.4 million.

A price rise in the US market and the appreciation of the US dollar contributed to the company’s revenue growth. The Americas was Sirtex’s strongest market, accounting for 3390 dose sales.

EMEA dose sales meanwhile grew 28.1% to 1120, with revenue increasing 27.2% in Euro terms. Restoration of UK market funding for SIR-Spheres through the Commissioning through Evaluation process and a return to growth in key Western European markets helped drive this growth.

Dose sales from APAC grew 10.8% to 440 and revenue from the region increased 14.7%, primarily as a result of solid growth in the Australian market.

Sirtex is currently involved in five clinical studies designed to generate data to encourage adoption of SIR-Spheres in prescriptions for liver cancers and metastases. As of the end of 2014, two of these had reached 100% recruitment, and Sirtex came closer to its recruitment targets for the other three.

Preliminary results from the SIRFLOX trial in metastatic colorectal cancer are expected to be released in March.

Sales and marketing expenses for the half-year grew 39% to $29.5 million, operating expenses increased 31.4% to $36 million and R&D spending grew 3.7% to $4.1 million.

In an ASX filing, Sirtex said its business outlook in all markets remains positive and is driven by the unmet medical need for liver cancer therapies.

Sirtex Medical (ASX:SRX) shares were trading 9% higher at $32.82 as of around 2 pm on Wednesday.

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