Wellington, April 14 NZPA - Christchurch-based biotechnology company PharmaZen achieved a turnaround last year to a pre-tax surplus of $442,822, saying it capitalised on groundwork done in previous years.

The result for the year to the end of December by the animal and health products supplier compares to a pre-tax deficit of $660,962 for the prior 14-month period.

Turnover in the latest period of $5.8 million compared with a $4.5m for the prior period.

PharmaZen chief executive Craig McIntosh said the most significant achievement in 2008 was the start of sales into China of Collamex, specifically targeted to the hair care industry.

The move had enabled the company to enter the lucrative, but challenging, Chinese domestic market, offering significant growth opportunities. The 2008 year was a record for production, which was a direct consequence of investments in plant and equipment in 2007, Mr McIntosh said. That capital spending enabled the company to achieve the 2008 volumes without any significant increase in operating expenses. Shares in PharmaZen are traded through the Unlisted unregistered securities trading facility. The most recent price was 2.5c in early April, having ranged between 1.5c and 3c in the past year.