Advitech Inc. (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.
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 800 mg. 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:
- Dr Christina 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 Dr Réjean Drouin 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. -- www.cnxmarketlink.com
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