Transcription of Finance News Network Interview with Universal Biosensors, Inc. (ASX:UBI) CEO, Paul Wright
Carolyn Herbert: Universal Biosensors, Inc. (ASX:UBI) is a medical diagnostics company focused on the research development and manufacture of diagnostic test systems for point of care professional and in-home use.
I’m Carolyn Herbert and joining me at the CEO Sessions in Sydney is the company’s CEO, Paul Wright.
Paul welcome to FNN.
Paul Wright: Thank you for having me.
Carolyn Herbert: Can you start by giving us an introduction to Universal Biosensors?
Paul Wright: Universal Biosensors is a medical diagnostics company that specialises in developing and manufacturing diagnostic systems, for use at the point of care. These consist of a hand-held device with a one-time use disposable test strip that allows us to measure a range of biomarkers in a small drop of blood. And in contrast to traditional diagnostics, where you see a doctor and then you go and give a tube of blood, which might travel across town to a lab for analysis and take days, we’re providing the same accurate results in seconds or minutes, at low cost and great convenience.
Now we’ve developed two products so far with two world-leading companies, Johnson & Johnson (NYSE:JNJ) and Siemens Healthcare Diagnostics that are in the market generating growing revenues. One is for blood glucose monitoring, something that a diabetes sufferer might do on a regular basis. And the other is to manage patients that are on a blood thinner, an anti-coagulant therapy, who have to monitor their condition again, on a regular basis. And both of these are generating as I say, growing revenues in large international markets.
Carolyn Herbert: Can you tell us a bit more about that partnership with Siemens Healthcare Diagnostics?
Paul Wright: We signed up a partnership deal with Siemens back in 2011. And really that deal laid the framework for us to develop a number of coagulation tests, for use at the point of care, in professional settings with them. And as those products come to market, Universal Biosensors will be the manufacturer and supplier to Siemens of the test strips, the disposable test strips that are used in these systems.
Now of those products, the first has come to market, we have completed the development. And Siemens have launched a product in December last year that again, is used for the management of an anticoagulant therapy called Warfarin. And we have started producing strips for that product, and I see encouraging signs from the early volumes.
Carolyn Herbert: What other products are in the UBI pipeline at the moment?
Paul Wright: We have under our program with Siemens that I’ve just mentioned, we have two other tests that are coming to market, that are in development now at our factory. And we also have another coagulation test that Universal Biosensors will bring to market, under our own brand name through specialist distributors, again in international markets. And that one will be of strategic importance for us, as we become for the first time, a diagnostics company selling the meters and the strips, under our own company’s name.
Carolyn Herbert: Taking a look at financials now. What were some of the highlights from the companies FY2015 results?
Paul Wright: We are a calendar year reporting company and we have just put out a few numbers from our third quarter, ended 30th of September 2015. And what we’re seeing there is really a continuation of very solid revenue growth, flowing from the Johnston & Johnston product and the Siemens product. In the nine months to September, we’ve seen revenues grow at over 170 per cent above 2014 levels. And what that’s doing is that revenue growth is then flowing through to the bottom line. And in that same nine-month period, we’ve managed to generate for the first time, $1 million in cash over that nine-month period.
Carolyn Herbert: Finally Paul. What’s your outlook for the second half and where do you hope to see the company a year from now?
Paul Wright: In 2016, if we take that we expect to see more product, a new product in the market, we expect to see the continuation of revenue growth from the two current products and the third. And really that revenue growth is what will drive an improved performance financially, from the company.
Carolyn Herbert: Paul, thanks for the update on Universal Biosensors.
Paul Wright: Absolute pleasure, thank you.