Maiden results and new deals for BioProgress

Related tags Technology

Capsule technology company BioProgress has reported its first set
of interim results since becoming an AIM-listed company, as well as
a distribution deal with Hoefliger.

Capsule technology company BioProgress has reported its first set of interim results since becoming a UK-listed company, posting a pre-tax loss of £0.4 million (€0.6m) in the period from 22 May to 30 June.

The company listed on the UK's Alternative Investment Market in May, raising £3.5 million in the process, and now operates as a new entity having acquired all the equity in USA-based BioProgress Technology International. Cash reserves stood at £2.7 million as of 30 June.

Meanwhile, the company said today that it had executed a letter of intent with one company and is in late-stage detailed discussions with a second to enter into global strategic alliances.

The first agreement is with Harro Hoefliger​, a German pharmaceutical production machine builder whose customer base includes 90 per cent of the leading global pharmaceutical companies. A formal agreement, which will make Hoefliger the exclusive builder, supplier, servicer and warranty provider for all BioProgress TABWRAP, SWALLOW, SEPTUM and NROBE machines, is expected to be executed on or before 31 October.

Under the terms of the deal, BioProgress will receive a margin on all machines sales and a royalty on all revenues generated by Hoefliger from the service activities.

The second deal, currently in late-stage discussions with a major international supplier of products to the pharmaceutical industry, could lead to the sale of an exclusive global license in respect of one of BioProgress' technologies. It is anticipated that a formal contract will be executed on or before 30 November.

BioProgress CEO Graham Hind said: "Hoefliger has satisfied us that it has the resources to meet the roll-out of upwards of fifty of our XGel systems at the pace necessary to meet our business goals. This is a key strategic alliance for BioProgress as … we believe we can generate further machine revenues by future performance upgrades to installed machines.

"By increasing the speed and throughput on existing and future machines, we also anticipate film revenues to increase from the current machine average of around £1 million per installed machine per year."

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