Vita Genomics Inc (賽亞基因科技), Taiwan’s biggest genomics-based biotechnological and biopharmaceutical company, aims to double its profits this year through the acquisition of domestic testing facilities and partnerships with global drug makers, company executives said yesterday.
The New Taipei City-based company recorded a modest NT$103 million (US$3.3 million) in net income last year, translating into earnings per share of NT$2.37, according to the company’s Web site.
The figures represent an end to 13 years of losses after the unlisted company last year recruited Vita Genomics general manager Eddy Hsieh (謝春成), who introduced a financial restructuring plan and shut down unprofitable businesses.
Hsieh also helped the company recognize intangible assets, including establishing a database among other innovations, the company said.
The process of reinvention is set to continue, with a capital increase plan slated for June, with which the company hopes to raise about NT$800 million by issuing 60,000 common shares priced at NT$13 per share, Hsieh said.
The capital injection is almost twice the current capitalization of NT$460 million.
Domestic and foreign hedge funds have voiced interest in purchasing the 13-year-old company’s stock.
“Vita Genomics plans to use the money to develop into a healthcare services provider, integrating firms in the supply chain,” Hsieh said.
The company is set to increase its pharmaceutical partners from four to seven and has inked three-year cooperation agreements with five global drug makers, Vita Genomics said, without disclosing details.
The partnerships are set to allow the company to move into the companion test business, boosting its corporate value, Hsieh said.
In Taiwan, Vita Genomics has struck acquisition deals with five genomics testing facilities and is in talks to buy a large pathology-testing laboratory later this year, the company said.
“The testing business should be a key profit driver this year after the integration,” Hsieh said.
The testing business now generates NT$200 million in revenue, the company said, adding that the amount is expected to double in the second quarter and approach NT$600 million in the second half.
In addition, Vita Genomics has built strong relationships with research institutions and medical organizations throughout the nation.
The company is an active participant in modernizing the nation’s healthcare system and is establishing the infrastructure needed to add molecular profile information to the National Health Insurance IC card.
Vita Genomics is also plans set up a healthcare team that would help conduct annual checkups of students and workers at schools and private companies, the company said, adding that the venture could generate another NT$100 million in revenue.