Press releases
Advitech reports its 2007 fourth quarter and 2007 year-end results
15 April 2008
TSX VENTURE EXCHANGE: AVI FOR IMMEDIATE RELEASE
QUEBEC, QUEBEC – April 15, 2008 - Advitech Inc. (“Advitech” or the “Company”) (TSX Venture Exchange: AVI) announces today its financial results for the fourth quarter of 2007 and for the year ended on December 31, 2007.
QUEBEC, QUEBEC – April 15, 2008 - Advitech Inc. (“Advitech” or the “Company”) (TSX Venture Exchange: AVI) announces today its financial results for the fourth quarter of 2007 and for the year ended on December 31, 2007.
Fourth Quarter OF 2007 Financial Highlights:
· Increased revenues by 107% to $405,576 for the fourth quarter of 2007, compared to $196,026 for the corresponding period in 2006.
· Dermylex® sales were the major driver of the $209,550 revenues growth.
· Reduced net loss by 64% to $140,381 for the fourth quarter of 2007, compared to $387,858 for the same period in 2006. The reduction of the net loss was generated by a reduction of expenses and the sales increase.
2007 Year-End Financial Highlights:
· Increased revenues by 68% to $1,110,157 for the year ended on December 31, 2007, compared to $661,285 for the corresponding period in 2006.
· Maintained net loss at $1,349,753 for the year ended on December 31, 2007, compared to $1,375,059 for the same period in 2006.
FINANCIAL POSITION:
· As at December 31, 2007, the Company had $1,158,459 cash on hand, compared to $601,375 as at December 31, 2006, an increase of $557,084 which results from the completion of the Company’s financing plan in the first two quarters of 2007.
· Moreover, the Company has also accepted, in the first quarter of 2008, a financing offer from its banking institution for a $500,000 bank loan, to be guaranteed by Investissement Québec.
Renaud Beauchesne, President and Chief Executive Officer stated that “the $448,872 revenues increase over the 2006 performance is mainly due by further markets development for Dermylex® in the US and in Europe.
”“For fiscal 2007, the net loss was 2% lower than the previous year. The 68% revenues increase was offset by an increase in operation expenses resulting from the addition of senior management, from additional resources invested to complete Dermylex® distribution network and from higher financial expenses related to the new financing activities”, also added Mr. Beauchesne.
“Management team is satisfied with the Company’s accomplishments in 2007. During the past year, we have reached significant milestones by increasing Dermylex® distribution channel in several new and strategic markets, publishing promising results on Wound Healing, a new application derived out of a combination of both our XP-828L and our new IM platforms, and finally by consolidating the Company’s financial structure”, added Renaud Beauchesne.Following up upon the momentum created in the second half of 2006, Advitech concluded new marketing and distribution agreements for seven additional territories including the US and France, two very strategic markets for the commercialization of Dermylex®, the Company’s flagship product. The 2008 revenues are therefore expected to be higher than those of 2007, and, as was the case for 2006 and 2007, revenues are expected to be concentrated in the last two quarters of the fiscal year. New products introductions and launches are planned for the second and third quarter of 2008.
Early in the first quarter of 2008, Advitech announced the positive results from a second pre-clinical study on Wound Healing & skin care applications. Management believes that Wound Healing & skin care fields will open a significant market opportunity for the Company by opening the Pharma market in addition to the nutraceutical market where has been the development of the Company since its inception.
Selected financial information
Years and quarters ended December 31
(In thousands of dollars, except per share amounts)
Income Statements | Fourth Quarter2007 | Fourth Quarter2006 | Fiscal Year2007 | Fiscal Year2006 |
| Total revenues | $406 | $196 | $1,110 | $661 |
| Net loss | $(140) | $(388) | $(1,350) | $(1,375) |
| Net loss per share, basic and diluted | $(0.00) | $(0.01) | $(0.02) | $(0.02) |
Selected financial information
As at December 31
(In thousands of dollars)
Balance Sheets | 2007 | 2006 |
| Cash and cash equivalents | $1,158 | $601 |
| Other current assets | $903 | $433 |
| Long-term assets | $181 | $203 |
| Current liabilities | $423 | $515 |
| Long-term liabilities | $1,710 | $1,092 |
| Shareholders’ equity | $109 | $(370) |
The 2007 fiscal year 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.
About Growth Factors:
Growth factors are proteins with multiple functions in the human body. Growth factors modulate immune responses and cell growth. Some growth factors are produced in the laboratory and used in biological therapy in extremely lucrative markets such as inflammatory diseases or skin care. However, synthetic production of growth factors is extremely expensive, which represents a major concern for product development.
Through an extensive research program, Advitech has mastered the ability to produce naturally milk derived growth factors at relatively lower cost than synthetic growth factors. The ability of Advitech to produce such growth factors opens up new market opportunities in the nutraceutical and pharmaceutical markets.
About Wound Healing:
According to Espicom Business Intelligence Ltd., the global wound care market totalled $7.2 billion in 2006, with a 10% growth rate. Growth factor based applications for wound-healing represent more than 5% of the market, with an impressive 27% growth rate.
About Dermylex® 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®).
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.
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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 |
| info@advitech.com | s.comeau@advitech.com |