Bespak Share Discussion Threads

[waldron] 05/11/2003 07:20

RNS Number:6750R
Bespak PLC
05 November 2003


For Immediate Release 5 November 2003



Bespak plc

OPENS NEW #10 MILLION STATE-OF-THE-ART MANUFACTURING EXTENSION

Bespak (LSE: BPK), the drug delivery company, is today opening a #10 million
extension to its King's Lynn manufacturing site in a ceremony led by Dr Monica
Darnbrough CBE, Director of the Bioscience Unit at the Department of Trade and
Industry.

The extension houses a 1,400 sq m clean room containing the latest electric
moulding and assembly suites for the manufacture of pressurised metered dose
inhaler (pMDI) valves and actuators.

Mark Throdahl, Bespak's chief executive, said: "The completion of this project
will help Bespak meet the requirements of its global customer base for years to
come and realises its vision of becoming one of the world's leading drug
delivery device developers."

Dr Darnbrough said: "This is an important step forward for Bespak and puts the
company in a very strong position in terms of pMDI manufacturing. The company is
a natural partner for pharmaceutical companies looking to bring a range of
devices to market. This development only improves Bespak's position as an
important employer in the King's Lynn area both now and for the future."

Around 500 people work at Bespak's King's Lynn site in roles involving the
design, development, tool manufacture, moulding, assembly and analytical testing
of a variety of drug delivery devices from pMDIs and actuators to
breath-activated devices and needle-free delivery systems.

The new manufacturing hall is supported by an extensive laboratory testing
facility, which offers Bespak's partners the highest standards of collaborative
development supported by a data lead design process, allowing Bespak and the
pharmaceutical company to develop drug delivery components very quickly.

Once a drug and device is approved, the laboratory continues to support the
manufacturing process and provides regular testing data so that stringent
regulatory records are maintained for the drug and device throughout its life.

Products manufactured at the King's Lynn site include the DiskusTM dry powder
inhaler, the drug delivery device used in GlaxoSmithKline's blockbuster asthma
treatment Advair/Seretide.

For further information please call:

Bespak plc Tel: [phone]
Mark Throdahl, CEO

Buchanan Communications Tel: [phone]
Mark Court, James Strong,
Mary-Jane Johnson

Notes to Editors

Bespak plc is in the forefront of developing new delivery systems for the
pharmaceutical industry. The company has a product range covering metered dose
inhalers, dry powder devices, actuators and compliance aids. The company also
develops and manufactures drug delivery devices for leading global
pharmaceutical companies. The group has facilities in King's Lynn and Milton
Keynes in the UK and in Cary, North Carolina, in the USA. Bespak is a public
company quoted on the Official list of the London Stock Exchange (LSE: BPK).
For more information go to www.bespak.com




This information is provided by RNS
The company news service from the London Stock Exchange
END

NRAEAKFLEAADFFE

[tma3] 22/10/2003 20:30

Choices concerning your investments can sometimes
be very confusing and frustrating.
Leave the angst behind and let this help with your choices.
Their history is very impressive and you have nothing to lose.

[waldron] 23/9/2003 13:05

RNS Number:0635Q
Bespak PLC
23 September 2003


SCHEDULE 5

BLOCKLISTING SIX MONTHLY RETURN


1. Name of company: Bespak plc

2. Name of scheme: Bespak 1996 Savings Related Share Option Scheme

3. Period of return: From 25 March 2003 to 24 September 2003

4. Number and class of shares(s) (amount of stock/debt security) not issued
under scheme at the end of the last period: 400,000

5. Number of shares issued/allotted under scheme during period: NIL

6. Balance under scheme not yet issued/allotted at end of period: 400,000

7. Number and class of share(s) (amount of stock/debt securities)originally
listed and the date of admission: 400,000 Ordinary on 22 March 2000

Please confirm total number of shares in issue at the end of the period in order
for us to update our records: 26,805,889

[waldron] 22/8/2003 09:15

RNS Number:9516O
Bespak PLC
22 August 2003


Immediate Release 22 August 2003



Bespak plc



Termination of offer discussions

and update on trading



Bespak plc announced on 8th April that it had received a number of approaches
from third parties interested in making an offer for the Company. Having
thoroughly explored these and subsequent approaches, the Board has concluded
that, although indicative offers were received at a significant premium to the
current price, none were at a level that fully reflected the prospects of the
Group. Accordingly, all such discussions with third parties have been
terminated.



Meanwhile, trading in the first quarter ended 31st July was ahead of the Board's
expectations. MDI valve sales were positive, particularly to a wide range of
HFA customers. Bespak's valve development programmes progress in line with
expectations, as does the new MDI manufacturing facility, which will be
completed in early October. Unit costs on the Company's largest contract
manufactured item are being significantly reduced.



The Company is encouraged by an accelerated pace of activity on Pfizer's Exubera
inhaled insulin, for which Bespak will manufacture the delivery device.



The restructuring programme continues to progress and the majority of headcount
reductions have been made. We remain confident that the overhead savings from
this restructuring will be realised during the balance of the year.



For further information please call:


Buchanan Communications Tel: [phone]
Tim Thompson/Bobbie Swanson

[maywillow] 17/7/2003 07:07

RNS Number:6463N
Bespak PLC
17 July 2003


For Immediate Release: 07.00, Thursday 17 July 2003



Bespak plc


Preliminary Results for the 52 weeks ended 3 May 2003


Bespak, an innovator in drug delivery, today announces its preliminary results
for the 52 weeks ended 3 May 2003.


HIGHLIGHTS


*Sales of products and services declined by 13% to #79.9m (2002: #91.5m)
*Profit before taxation and exceptional items of #4.2m (2002: #15.0m)
impacted by price reduction on major product and reduced demand for CFC
valves
*Restructuring and manufacturing efficiencies on track - expected to
achieve significant annualised savings as previously announced
*Final dividend maintained at 12.1p per share
*Net cash #8.8m at 3 May 2003 (2002: #24.8m)
*Increasing conversion from CFC valves to HFA valves, with significant
market share gain expected
*Encouraging signs on Pfizer's Exubera inhaled insulin - Bespak to
manufacture this delivery device


Commenting on the results, Mark Throdahl, Bespak's Chief Executive, said:


"While it has been a tough year, we have taken aggressive steps to address the
issues responsible for our unsatisfactory financial results. Bespak is well
placed to return to previous levels of performance and we continue to be
encouraged by the strong fundamentals in our core businesses and the positive
start to our new financial year.


In recent months we have regained the initiative in winning HFA valve
evaluations, demand remains strong for GlaxoSmithKline's DiskusTM device and we
are confident about the prospects for Pfizer's Exubera inhaled insulin product.
With a strong balance sheet, the Group is well-positioned to create substantial
shareholder value going forward."


For further information please contact:

Bespak plc Tel on 17.07.03 : [phone]
Mark Throdahl - Chief Executive Thereafter: [phone]
Martin Hopcroft - Group Finance Director

Buchanan Communications

Nicola How / Bobbie Swanson Tel: [phone]
Mobile: [phone]


Bespak plc


Preliminary Results for the year ended 3 May 2003


OVERVIEW


2002/03 has proved to be a difficult year. Bespak has been impacted by reduced
demand for many Respiratory product lines and, primarily, by a significant price
reduction on a major Device & Manufacturing Services (DMS) product. While the
price reduction was not matched by cost reductions as anticipated, we expect to
achieve these cost reductions during the coming year. Delays in the Exubera
inhaled insulin programme, our largest current potential source of growth, meant
that we were unable to offset the impact of these factors. However, our
confidence in this product reaching the market remains high.


As a result of these issues, sales of products and services declined by 13% to
#79.9 million (2002: #91.5 million). The overall impact on profitability was to
reduce profit before taxation and exceptional items to #4.2 million (2002: #15.0
million).


To restore Bespak to previous levels of performance, we have taken significant
steps to restructure the Group's cost base. This restructuring programme is well
underway and is planned for completion in January 2004. The restructuring is
expected to achieve significant annualised savings as previously announced. Most
of the headcount reductions have already been made and the Board is confident
that savings from the restructuring will be realised. In view of this, the Board
is committed to maintaining the current dividend and, hence, is proposing a
final dividend of 12.1 pence per share (2002: 12.1 pence).

The year has also seen some changes to the Board. In September, we announced the
appointment of Jack Cashman as a non-executive director. As former Chairman and
joint CEO of R P Scherer Corporation, Jack's experience and contacts in the drug
delivery arena continue to prove invaluable.


In November, Martin Hopcroft joined us as Group Finance Director. His broad
experience and fresh perspective have been greatly appreciated during the course
of our restructuring.


Overall, this year has presented Bespak with unprecedented challenges. The
impact of the price reduction on a major product and reduced CFC valve demand,
necessitated a programme of restructuring. It should be noted, however, that our
performance in the last financial year masks some encouraging trends. Pulmonary
valves are poised for significant revenue growth and gain in market share over
the medium term, while DMS looks set to grow rapidly as Exubera and other new
products are launched.


The Company has been through a period of significant capital investment. While
this has resulted in a major cash outflow during the year, this investment is
transforming our manufacturing facilities to support future growth and
efficiencies.



Despite difficult market conditions impacting performance, the Board remains
very confident about Bespak's future and is encouraged by the positive start to
the new financial year.


In April, we announced that we had received a number of approaches from third
parties. Discussions continue with several parties but there can be no certainty
that a transaction will result. A further announcement will be made in due
course.


OPERATING REVIEW


During the last financial year, Bespak was confronted with a number of
significant issues. In responding to them we have put the Company through a
period of considerable change based on a detailed review of our strategy,
business prospects and organisational structure. The fundamental strength of our
core businesses was confirmed, but the need to curtail nasal formulation
development was also identified.


The restructuring of our expense base was grounded, therefore, on a confirmed
strategy and a refined organisational structure. Obviously, the departure of
significant numbers of employees and the discontinuance of many programmes has
been difficult, but we are convinced that these changes will make Bespak a
stronger company.


Respiratory


Bespak designs, manufactures and sells metered dose inhalation (MDI) valves,
actuators and accessories used to deliver respiratory drugs to the lung. In the
past two years, the business has expanded to include systems to deliver systemic
drugs to the bloodstream through the nasal cavity. Sales declined by 17% to
#35.4 million (2002: #42.9 million) owing to de-stocking of CFC valves in the
important US market and the unpredictable pace of conversions from CFC to HFA
formulations in Europe. Despite the recent performance, there are encouraging
trends in this business.


HFA conversions are driven by international agreements to reduce ozone depletion
in the atmosphere by switching from CFC propellants to environmentally friendly
HFA propellants. The conversion process opens up the CFC formulations at every
pharmaceutical company to competition from all HFA valve suppliers, but the
result is not necessarily a smooth unit-to-unit conversion for companies like
Bespak. An incumbent CFC supplier's valves might not work with a particular HFA
formulation, or a new HFA formulation may suffer from regulatory delays or
commercial problems after launch. Therefore, there will be considerable market
share changes over the period of this conversion and we expect that Bespak's
share will expand strongly over the next few years.


Bespak is already the valve source for 12 of the 17 approved HFA formulations in
Europe and the USA. This demonstrates that Bespak has the widest range of
customers, drugs and formulations in the industry. We believe that we are
winning the majority of new valve development programmes due to our Valves
Centre of Excellence, in which we have experts in aerosol formulation, elastomer
chemistry and statistics. One of our recent new customer wins during the past
year is Chiesi Farmaceutici, where Bespak's BK357 valve is exclusively specified
in an HFA budesonide formulation. Sales began in early 2003 when the formulation
was approved in Germany, and are accelerating.


Over the next few years, we believe that Bespak's HFA valve sales will increase
significantly as approved drug development programmes receive regulatory
approval and launch, while CFC valve sales decline over time. In order to handle
these incremental volumes of business, Bespak has constructed a new #10 million
MDI valve facility in King's Lynn. This plant will provide significant cost
efficiencies and best-in-class manufacturing conditions.


Bespak continues to invest in break-through metered dose delivery technologies.
Our development with DEKA Research Corp. of a closed loop feedback device is
progressing in line with expectations. We are currently evaluating a prototype
which has been designed to eliminate patient-to-patient and breath-to-breath
dose variability. We are encouraged by the rapid technical progress of this
programme. We plan to show this new product to potential customers later this
year after in-vitro performance data have been compiled.


In April 2003, we announced the curtailment of our nasal formulation work. While
technical milestones were being met, we could no longer justify investing in
nasal programmes which would take many years before generating returns. However,
we shall continue to exploit opportunities to develop proprietary nasal drug
delivery devices that build on the technologies we have developed in recent
years. Central to this effort is our exclusive access to the modeling
capabilities at the CIIT Health Research Centres in Raleigh, North Carolina,
which enable us to deliver drugs to specific areas of the nasal anatomy - an
important requirement as more systemic drugs are delivered nasally.


Device & Manufacturing Services (DMS)


Bespak provides a comprehensive range of device-related services to
pharmaceutical and drug delivery companies. Bespak takes customers' devices from
concept through to regulatory approval, supply chain management and full-scale
manufacture. Our customers benefit principally in two ways: Bespak can design
the device for efficient manufacturing and minimise the time from concept to
market introduction. Bespak offers its development services on a fee-for-service
basis.


DMS volumes grew substantially over the past year owing to new volumes of
Abboject prefilled syringes for Abbott Laboratories. However, the impact of a
price reduction on our largest DMS product was a major factor in the 9% decline
in sales to #37.8 million (2002: #41.5 million re-presented). While this price
reduction was anticipated, technical issues and additional volume demands
delayed the implementation of cost reduction programmes, which are now well
advanced.


Bespak has invested considerable selling and engineering resources in bidding on
numerous prospective DMS opportunities. While we generally do not own
intellectual property in this business, the know-how associated with managing
complex CGMP programmes and the capability to manufacture millions of devices
with high speed automated equipment constitute considerable barriers to
competition.


We continue to finalise the capability that will deliver Exubera, the first
inhaled insulin product, working with our partner, Nektar Therapeutics of San
Carlos, California (formerly Inhale Therapeutic Systems). Our manufacturing
facility in Milton Keynes has progressed to the point where we are now ready to
begin final validation activities. Considerable work has been done to create a
facility that complies with the exacting FDA medical device standard known as 21
CFR 820. In June, Pfizer, Nektar's partner, presented additional encouraging
clinical data at the annual meeting of the American Diabetes Association. While
the regulatory submission has taken longer than Bespak originally anticipated,
we remain optimistic that Pfizer and Nektar will be successful in launching
Exubera, a product that can revolutionise insulin therapy for millions of
patients. This exciting development will also pave the way for other protein
based systemic drugs to be delivered to the bloodstream through the lung,
creating new opportunities for Bespak.


Consumer Dispensers


Bespak manufactures pumps for consumer household products, toiletries and
fragrances. Sales declined by 6% to #6.7 million (2002: #7.1 million) over the
past year. Bespak Consumer Dispensers generally does not serve regulated
industries and so new product sales can occur more rapidly than in our other
businesses.


We are committed to growing this business through selective investments and
licensing agreements, of which the Millennium pump is the first. Millennium is a
new spray pump designed to handle viscous products such as deodorants and
hairsprays and, as a result, we expect to see sales expanding over the next few
years.


FINANCIAL REVIEW


Trading performance


Turnover declined by 12% to #88.3 million (2002: #100.3 million re-presented).
Excluding sales of tooling and equipment that are customer-funded, sales of
products and services declined by 13% to #79.9 million (2002: #91.5 million)
arising from the impact of a significant price reduction on a major product and
reduced demand for CFC valves. Consequently, Group operating profit before
exceptional items declined to #3.5 million (2002: #14.2 million re-presented).


Profit on ordinary activities before taxation and exceptional items of
#4.2 million (2002: #15.0 million) demonstrates that Bespak has traded at
breakeven in the second half of the year, as forecast in the April announcement.


Looking ahead, the results will benefit from the significant overhead reductions
arising from the restructuring and manufacturing cost reductions as offset by
the annualised impact of the price reduction on a major DMS product.


Exceptional items


Exceptional items have been incurred on the restructuring and on the sale of an
associate. Firstly, as a result of actions to re-align the cost base with the
activity levels, restructuring costs of #2.4 million have been charged in the
year. Secondly, a profit of #1.4 million arose on the sale of the 40%
shareholding in Microspray Delta S.p.A.


The restructuring that was initiated in November 2002 is expected to continue
until January 2004, such that further restructuring costs will be charged as
incurred in our next financial year.


Tax


The overall tax charge of 15% reflects an effective tax rate of 27% on the
profit on ordinary activities before exceptional items, together with a nil tax
charge on the sale of shares in the associate. The effective tax rate is
expected to increase over time as the US operations return to profitability,
once accumulated tax losses have been fully utilised.


Earnings per share


Basic earnings per share after exceptional items are 10.5p (2002: 41.3p). The
impact of dilution is not material.


Dividends


The Board is recommending a maintained final dividend per share of 12.1p (2002:
12.1p), such that the total dividend for the year amounts to 19.1p (2002:
19.1p). The final dividend will be paid on 18 September 2003 to shareholders on
the register on 22 August 2003.


Treasury


At the year end, Bespak had net cash of #8.8 million (2002: #24.8 million).


A significant proportion of operating assets are denominated in US dollars.
Operating assets denominated in US dollars are broadly matched by US dollar
borrowings, thereby hedging the exchange rate exposure. Such borrowings total
the equivalent of #7.5 million.


In addition to its cash balances and short-term investments at the year end,
which amounted to #18.0 million (2002: #34.4 million), Bespak also had un-drawn
committed facilities of #4.2 million (2002: #9.1 million).


Transactions in foreign currencies are matched wherever possible and the net
balance is hedged using forward contracts. The treasury function does not
operate as a profit centre and no speculative treasury transactions are
undertaken.


Cash flow


The net cash outflow before management of liquid resources and financing was
#16.6 million (2002: #16.2 million cash inflow). The reduction in the year
reflects the decline in operating profit, the unwinding of working capital
related to customer-funded projects, significant capital expenditure programmes
and payments of dividends.


Over the past few years, Bespak has undertaken significant capital expenditure
programmes and customer-funded projects. These include expansion and
consolidation of the Diskus facility, scale up for Nektar, investment in
laboratories and consolidation of the MDI valves facility. This last investment
is expected to be completed in September 2003, after which capital expenditure
will return to more normal levels.


Accounting policies


Income from the sale of tooling and equipment that Bespak procures on behalf of
its customers is now included within turnover and related costs within operating
expenses. This provides greater visibility of the investment by customers in the
productive capacity. The comparative income has been re-presented. This
reclassification does not affect the operating profit or net assets.


Income from amounts invoiced by reference to the level of the Group's capital
investment has been reclassified from interest receivable to turnover in order
to more fairly reflect the nature of the income. The comparative income has been
re-presented. This reclassification does not affect the profit before tax or net
assets.


Pensions


Bespak operates a defined benefit pension scheme in the UK, which was closed to
new members at 30 June 2002. The latest triennial actuarial valuation under SSAP
24 as at 30 April 2002 disclosed net assets of #17.0 million and a deficit of
#4.0 million. After consultation, contributions by employees have been increased
in order to eliminate the deficit over a 15-year period. From 1 July 2002, new
employees are eligible to join a defined contribution pension scheme.



SUMMARY


While it has been a tough year, we have taken aggressive steps to address the
issues responsible for our unsatisfactory financial results. Bespak is well
placed to return to previous levels of performance and we continue to be
encouraged by the strong fundamentals in our core businesses and the positive
start to our new financial year.


In recent months we have regained the initiative in winning HFA valve
evaluations, demand remains strong for GlaxoSmithKline's DiskusTM device and we
are confident about the prospects for Pfizer's Exubera inhaled insulin product.
With a strong balance sheet, the Group is well-positioned to create substantial
shareholder value going forward.

[maywillow] 30/6/2003 09:36

RNS Number:9149M
Bespak PLC
30 June 2003


Immediate Release 30th June 2003



Bespak plc



Notification of Preliminary Results

for the year ended 3 May 2003



Bespak plc will now be announcing its Preliminary Results for the year ended 3
May 2003 on Thursday 17 July, rather than Wednesday 23 July as previously
notified.



- ENDS -

[hupper] 05/6/2003 13:36

Its reached my take out price £3.80, are we looking at £4.00+

[cat] 02/5/2003 00:04

More institutions been buying - showing their hands today -
Aegon
JP Morgan
CSFB
Deutsche
Schroders
ISIS

all six bought big lumps yesterday mostly near the top.
The question is - who they been buying for...?

Hg Capital? / The managment?

Potential Bidder?

[tiraider] 01/5/2003 00:15

Hi Cat;

I'm watching BPK closely as well from the perpective of a WMG holder. We're expecting news any day now of a successful sale of Weston Med, which will do BPK a lot of good as they manufacture Intraject.

I wonder if the recent interest has something to do with WMG???

rgds
tr

[tiraider] 30/4/2003 16:08

Hupper;
RNS today says the 'offeree' company has been in the market buying. Up 52.5p (20.2%).

The offeree company must be sure of the future of Intraject to go ahead like this.

Take out price?? Sorry, I don't know enough about BPK, but a premium to taday's price for sure. You're probably somewhere near the mark working on %terms. Good luck to you.
rgds
tr

[hupper] 30/4/2003 15:51

Anyone have a take out price in mind? £3.80 (pure guess)

[cat] 30/4/2003 11:50

Deutsche buying for someone - they hinted at a bid at last set of results.

[cat] 30/4/2003 08:41

high volume reversal yesterday - looks interesting

[daveperry] 09/2/2003 22:35

Margins have decreased.

On the way down.

[dr darkstar] 16/12/2002 20:54

can see this under 250 by XMaS

[pugugly] 12/12/2002 15:17

Post 4 above confirmed - imo still to be avoided untill clear signs that there is organic growth in the demand for their products and packing services.

[m.t.glass] 12/12/2002 10:05

Piece of vaguely related asthma treatment theory/observation coincidentally makes it onto the BBC's main news schedules today.

[pugugly] 05/11/2002 10:53

Cat:- Knew we could count on you for detailed analysis. I have always regarded BPK (and we used them) as a Contract Packer - not a pharma coy. On this basis I would suggest a forward p/e of between 8 and 12 (probably nearer the lower end is sufficient). Interesting that they intend to maintain dividend but ONLY "to do so in the medium term".

COULD THIS BE DOUBLE TALK FOR "WE SEE MAJOR PROBLEMS IN THE MEDIUM FUTURE"??

[pugugly] 05/11/2002 10:53

Deleted. Double post

[cat] 05/11/2002 09:27

Just been talking to a colleague about BPK - New combination inhalers are an important issue -
The combination of long-acting Beta 2 agonists and steroids (e.g. Seretide)not only improves patients disease, the long acting Beta2 negates the need for short acting Beta 2s like albuetrol/salbutamol(ventolin)....sales of these must be plummeting.
The industry seems to have shafted itself by treating patients so well they are not needing to use so many inhalers.
Asthmatics are no longer so desparate about keeping a ventolin inhaler in the car, in the bathroom , in the handbag/coat pocket - simply cos the new treatments are sorting it all out using ONE inhaled device instead of several.
No wonder Albuterol / Ventolin inhaler sales are poor.