Biotoxtech, a KOSDAQ-listed contract research organization (CRO) specializing in nonclinical services, said on the 23rd that, after a prolonged slump in business conditions, it expects a full-fledged turnaround in results this year.
Biotoxtech, in a "Letter to shareholders" released the same day, noted that it endured a difficult period over the past two years due to reduced research and development (R&D) investment by the private sector and the government, but said it will complete structural improvements this year through securing quality competitiveness and efficiency.
According to Biotoxtech, its order backlog last year amounted to 41.5 billion won. In the fourth quarter, it also posted the second-highest quarterly orders since its founding. Considering that it takes several quarters for nonclinical testing orders to be recognized as actual revenue, the company said orders secured last year could translate into revenue growth starting this year.
The company also emphasized that Celltrion, a leading bio company in Korea, participates as a major shareholder (equity stake about 10.22%), demonstrating Biotoxtech's technological strength and business stability.
Keeprime Research, a subsidiary and a pillar of future growth specializing in nonhuman primates (NHP), is also showing earnings growth. Keeprime Research is recording improvements of more than 100% every year in both orders and revenue. Building on these results, Keeprime Research recently began full-fledged initial public offering (IPO) procedures, including filing for a designated auditor.
The company will also step up efforts to enhance shareholder value. Biotoxtech plans to actively implement shareholder return policies, including share repurchases and cancellations, while expanding nondeal roadshows (NDR) and IR activities to increase communication with the market. Biotoxtech also disclosed a 1 billion won share buyback from August last year through the 26th of this month.
A Biotoxtech official said, "After enduring the past two years, we are now preparing for a second leap," adding, "We will repay shareholders' trust through earnings growth and transparent disclosure."