Sirtex Medical (www.sirtex.com)  is an Australian biotechnology company with global presence.  

Sirtex Medical Limited (SRX) is focused on production and marketing of SIR-Spheres technology for the treatment of liver cancer. Second focus is on research to enhance the SIR technology and potentially use it in other forms of cancer. 

The company’s technology SIR-Spheres is an effective treatment for liver cancer, a major cause of death in Asia, which is why Sirtex is currently developing opportunities in the Asian market.  In early 2008 the company commissioned a production facility on the US East Coast to enhance its ability to service its US customers. Prior to this, product was shipped from Australia. The Australian facility will now service the rest of the world.  

The company is also developing other products to reduce the risk of single product portfolio, this has made good progress in 2008 and 2009.  The company reported a strong growth in first-half year revenue earlier in 2009, first half revenue was $29.5 million (AUD) up 55.8% compared to the previous corresponding period.

The company indicated this was due to significant increase in SIR-Sphere microspheres sales during the first-half of FY 2009. Sales in the first-half was up 38.1%. Majority of the sales were achieved in US and Europe, but Asia is also growing very strongly.  

The business however, maybe impacted by the sudden rise in AUD in April and May, it will be interesting to see if this will impact on Sirtex’s profitability in the next 2 quarters.  

We had discussions with Sirtex in the past about their potential in Asia, the big markets are China, Taiwan, Hong Kong, and also India. Liver cancer is a very common cancer in these markets, they have spent years in developing the programs, and regulatory approvals were granted in many of the Asian markets already. In Taiwan, they have already treated a number of patients, and the local media has made press releases about Sirtex, as it bring in a complete new treatment method to liver cancer.  

The company is one of a few lucky biotechnology companies who do not need to raise capital to fund its development, as the company is cashflow positive.  The company has also increased its R&D and clinical efforts, which have gone up by 23% and 178% respectively from the pcp.

The company also has no borrowing, and with its strong cash position, the company may expand its R&D opportunities as well as making potential acquisitions in Asia.  

We have been following the progress in Sirtex Medical for a long time. In fact, since the company was first listed on the Australian Securities Exchange (ASX), as we have been looking it as one of the most promising Australian biotechnology companies.  We had an opportunity to develop the Chinese website for Sirtex back in 2008, as well as providing our public relation support for them in Asia.  We will be watching Sirtex Medical closely next 6 months and provide further update under our new Emerging Company Profile series.  

About Emerging Company Profile 

Emerging Company Profile is a new column contributed by Money Cat (www.moneycat.com.au) and ResearchWhitepaper (www.researchwhitepaper.com).

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