Press releases
ADVITECH ANNOUNCES HIGHLIGHTS AND RESULTS FOR THE SECOND QUARTER
26 August 2008
TSX VENTURE EXCHANGE: AVI For immediate release
QUEBEC CITY, QUEBEC - August 26, 2008 - Advitech Inc. ("Advitech" or the "Company") (TSX Venture Exchange: AVI) announces today highlights and financial results of its second quarter ended June 30, 2008.
Financial RESULTS FOR THE second Quarter OF 2008
Three-month period ended June 30, 2008:
- Revenues amounted to $181,478 compared to $273,803 for the same quarter in 2007, a decrease of 33.7% explained by the fact that during the second quarter of 2007, distribution agreements were signed with two major clients, and their first orders were placed during that quarter. The Dermylex® sales volume is usually higher in the last two quarters of each year because of the particular sales cycle of psoriasis products.
- The net loss amounted to $534,520, compared to a net loss of $509,399 for the quarter ended June 30, 2007, an increase of 4.9%.
Six-month period ended June 30, 2008:
- Revenues amounted to $258,776 compared to $327,118 for the six-month period ended June 30, 2007, a decrease of 20.9% mainly due to the absence of royalties during the first semester of 2008, whereas in the corresponding period in 2007, a $50,000 non-recurring royalty was generated by a now discontinued Advitech product.
- The net loss amounted to $977,440, compared to a net loss of $907,324 for the corresponding period in 2007, an increase of 7.7%.
"For 2008, we are still forecasting higher revenues than in 2007. We are also considering new opportunities that could have a positive impact on sales in 2008" commented Mr. Renaud Beauchesne, President and Chief Executive Officer at Advitech.
FINANCIAL POSITION
- As at June30,2008, the Company had a cash position of $916,285, compared to $1,034,086 as at March 31, 2008, an $117,801 decrease resulting mainly from the operating activities during the second quarter of 2008.
Selected financial information
Income Statements
| Three-month period ended June 30 | Six-month period ended June 30 | ||
2008 | 2007 | 2008 | 2007 | |
Total revenues | $181,478 | $273,803 | $258,776 | $327,118 |
Net loss | $(534,520) | $(509,399) | $(977,440) | $(907,324) |
Net loss per share, basic and diluted | $(0.007) | $(0.007) | $(0.013) | $(0.014) |
Selected financial information
Balance Sheets
| As at June 30, 2008 | As at December 31, 2007 |
Cash and cash equivalents | $916,285 | $1,158,459 |
Other current assets | $610,036 | $902,944 |
Long-term assets | $240,348 | $180,609 |
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Current liabilities | $547,526 | $422,629 |
Long-term liabilities | $2,077,975 | $1,710,064 |
Shareholders' equity | $(858,832) | $109,319 |
The second quarter of 2008 financial statements as well as the management's discussion and analysis of results of operations and financial condition are available on the Company's website at www.advitech.com.
second Quarter OF 2008 HIGHLIGHTS
Sales and marketing:
- Since the beginning of 2008, the Company has expanded the products portfolio with more than ten new products, to improve the current sales cycle and increase sales. These products will generate sales during the last semester of 2008.
- The Company signed a new distribution agreement with Vital Science for Canada and other countries. Vital Science is a major player in cosmetic field in Canada.
- Dermylex® had a strong retail growth in France and Taiwan. In Taiwan, Dermylex® received a formal approval to be sold directly in Taiwanese hospitals. We expect this new approval to generate new commercial developments in South-East Asia.
- Additional distribution agreements are in discussion for the U.S. and strategic European countries such as Germany, Italy, Spain, the United Kingdom and Russia.
Research and Development:
- A second clinical study confirmed the efficacy of Dermylex® in the treatment of mild to moderate psoriasis at a daily dosage of 800mg. The results were published in June in a peer-reviewed alternative medicine journal.
- An open-label study on eczema has demonstrated the potential efficacy of a new product developed from the XP-828L platform. The Company is now evaluating commercial opportunities for this new product, targeting a broader market than for psoriasis.
- Dr Charles Doillon made a presentation in June at the 3rd Congress of the World Union of Wound Healing Societies in Toronto. This was the first scientific introduction of our IM wound healing platform, and it generated a lot of interest. Advitech is currently evaluating strategic partnerships with several pharmaceutical partners for this new application and technical platform.
- The Company will update on its development results on October 1st, 2008, at BioContact conference, which will be held in Québec.
Human resources:
- DrChristina Juneau has resigned her position with Advitech to pursue a new career opportunity with a contract research organization in Montréal. Dr Juneau led the Company's research on psoriasis and eczema, bringing significant results and publications in these fields. She has agreed to be part of our Scientific Advisory Committee and will therefore maintain close ties with the Company.
- Advitech announces the appointment of DrRéjeanDrouin as Vice-President of Research and Development, replacing Dr Juneau. Dr Drouin, who was working as Director of Research and Development with Advitech for the past three years, has made a significant contribution to the Company's R&D program.
"I would like to thank Christina for her dedication, her efforts and her professionalism. She has been able to successfully meet a lot of challenges, and with her presence to the Company Scientific Advisory Committee, we will continue to benefit from her expertise. I wish her a lot of success in her new position" indicated Renaud Beauchesne, President and Chief Executive Officer at Advitech.
sTOCK OPTIONs GRANT
Advitech announces that pursuant to the Company's stock option plan, it has granted a total of 50,000 stock options to Christian Labbé, Finance Director at Advitech. These options have an exercise price of $0.15 per share and may be exercised during a period of five (5) years. This grant of options is subject to appropriate regulatory approvals.
ABOUT ADVITECH INC. www.advitech.com:
Advitech is a health sciences and technology company with a mission to discover and commercialize proprietary and evidence-based natural health products. Effective and safe, these products play a role in the prevention of immune-mediated inflammatory disorders, such as psoriasis and inflammatory bowel disease. Advitech produces Dermylex® for the treatment of mild-to-moderate psoriasis.
Advitech has drawn up a research program to develop new applications related to wound healing. This development is derived from both its XP-828L and IM technological platforms.
ABOUT DERMYLEX® http://www.dermylex.com/:
Dermylex®, developed by Advitech, is an oral natural health product formulated to improve mild-to-moderate psoriasis symptoms. Two clinical trials, including a 112-day, multi-center, double-blind, placebo-controlled trial with 84 patients, clinically proved the efficacy and safety of Dermylex® for that type of psoriasis. Dermylex® is currently available in Canada and the U.S. (as BioDerm, Dermalyx®), as well as in France and Belgium (as Psopax®).
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This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Advitech Inc.
Renaud Beauchesne, MBA | Serge Comeau |
President and Chief Executive Officer | Investor's relations |
418-686-7498, ext. 228 | 514-862-4160 |