Solid growth for PharmAust's chemistry arm

Claremont-based biotech company PharmAust has announced a record year for its synthetic and medicinal chemistry subsidiary, and has flagged further growth in the year ahead.

PharmAust subsidiary, Epichem, generated $3.1 million in revenue for FY17, up 30 per cent on its performance in FY16.

The result was achieved on the back of advancements across each of its business divisions, including its drug discovery services arm, which benefitted from a significant new US-based customer.

Epichem has also applied for two types of quality accreditation which represent the highest international standards for the production of reference standards.

“Successfully achieving these accreditation standards will facilitate access to further major global partners and is expected to drive significant growth in the high-margin catalogue business,” PharmAust said in a statement.

“An outcome to these application processes is expected by Q4 2017.”

PharmAust also announced Epichem was expanding its existing laboratory space and capacity by 50 per cent, which will be part-funded by a $470,000 loan from the Export Finance Insurance Commission.

Managing director Wayne Best said Epichem’s existing laboratories were now running at full capacity.

“The new laboratories are needed to meet current and forecast demand,” he said.

“The timing could not be better for a further expansion. The lower Australian dollar and the ongoing improvements to our quality accreditation levels are expected to continue driving significant revenue growth for the company and shareholders.”

Epichem is targeting $4 million in revenue for FY18.

PharmAust shares were 6.8 per cent higher to 7.8 cents each at the close of trade.