Advitech Inc. (TSX VENTURE: AVI) announced today its financial results for the fourth quarter and year ended December 31, 2006.
For the fourth quarter ended December 31, 2005, Advitech recorded $201,591 in revenue derived from sales of Dermylex(TM). Dermylex(TM) is the first product derived from Advitech XP-828L technology platform. Most of the sales were recorded in Canada with Jamieson Laboratories Ltd., our Canadian distributor as well as in Taiwan with Enbio-Life Biotechnology & Medical Company Ltd.
From a financial stand point, revenues from Dermylex(TM) and the effects of the Company's contingency plan implemented in the last portion of fiscal 2005 were the main drivers for the reduction in the net loss for fiscal 2006. "We are continuing our efforts and focussing on the marketing and commercialization plan to meet the sales targets and our growth plan", indicated Renaud Beauchesne, President and CEO.
For the fourth quarter ended December 31, 2006, the net loss was $ 387,858 or $ 0.007 per share compared to a $ 279,463 net loss or $ 0.01 per share for the same period in 2005, a $ 108,395 increase. Gross research and development expenses were $ 174,284 during fourth quarter of 2006, compared to $ 174,575 for the same period last year.
The net loss for fiscal year 2006 amounts to $1,375,059 or $0.02 per share compared to $2,015,008 for the fiscal year 2005 or $0.04 per share, a $639,949 decrease. Gross research and development expenses were $577,727 during the fiscal year ended December 31, 2006, compared to $1,151,750 for the same period last year. The difference is due to the completion of the clinical study conducted in 2005.
As at December 31 2006, cash and cash equivalents totalled $601,375 compared to $686,742 for the same period in 2005, a $85,367 decrease during the year that is in line with the Company's expectations.
Selected financial information Years and quarters ended December 31 (In thousands of dollars, except per share amounts) Fourth Fourth Year Year quarter quarter 2006 2005 2006 2005 Financial Results Total revenues $196.0 $375.1 $661.3 $847.6 Operating expenses $583.9 $654.5 $2,036.3 $2,862.6 Research and development costs, net of tax credits $129.7 $130.9 $429.0 $887.1 Net loss $(387.9) $(279.4) $(1,375.1) $(2,015.0) Loss per share basic and diluted - Before discon- tinued operations $(0.01) $(0.01) $(0.02) $(0.02) - Net loss $(0.01) $(0.01) $(0.04) $(0.04) Selected financial information As at December 31 (In thousands of dollars, except per share amounts) Balance Sheet 2006 2005 2004 Cash and cash equivalents $601.4 $686.7 $2,628.0 Other current assets $432.8 $742.9 $594.0 Long-term assets $202.7 $252.1 $270.9 Current liabilities $515.0 $532.3 $448.4 Long-term liabilities $1,092.4 $677.5 $681.3 Shareholders' equity $(370.5) $471.9 $2,363.2
The fourth quarter financial statements and the fiscal year financial statements as well as the management's discussion and analysis of operations' results and financial condition are available on the Company's website at the following address:
In accordance with the plan, through fiscal 2006, Advitech's management focus remained clearly on commercialization of Dermylex(TM), the funding for operations and XP-828L technology platform expansion toward applications that are similar to Dermylex(TM).
Rapid growth of Dermylex(TM) sales on a number of geographical markets is the Company's next year's goal. Positive results achieved in Canada in 2006 will serve as a reference for next year. The Company is and will remain close to its Canadian partner in order to monitor sales activities in order to fine tune the commercialization strategy.
On the Financing front, taking advantage of the results from the notable achievements in 2006, and benefiting from the favourable investment environment, the Company reached the financing objectives that were set for fiscal 2006. The remaining funding targets should be achieved through the first half of 2007. We expect to be in a position to look for additional funding opportunities in 2007 to fund further growth.
Considering the development of additional XP-828L application for new products, we identified eczema as focus point. An eczema clinical study should be completed in 2007 and a product launch could take place in 2008.
For fiscal 2007, the major objectives will include further development of the Dermylex(TM) distribution network especially in the US, the evolution of the production process industrialization as well as scientific advancement on the new eczema XP-828L platform application. On this front, we are currently progressing quickly on psoriasis and building the plans to conduct the clinical study on eczema.
SHAREHOLDERS' ANNUAL MEETING
The shareholders ' annual general meeting will be held at 16:00 p.m., on May 9, 2006, at l'Hotel Germain des Pres, 1200, avenue Germain-des-Pres, Ste-Foy (Quebec).
About Advitech Inc.
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 (IMID), such as psoriasis and inflammatory bowel disease. Advitech's common shares are listed on the TSX Venture Exchange under the symbol AVI. The number of common shares outstanding is 64,881,718. The NEW Dermylex(TM) website is now online at www.dermylex.ca.
Dermylex(TM) developed by Advitech, is an oral natural health product relieving mild-to-moderate psoriasis symptoms. Two clinical trials, one of them multi-center, double-blind and placebo-controlled, for 112 days and on 84 patients, clinically proved the efficacy and safety of Dermylex(TM) for that type of psoriasis. Dermylex(TM) is currently available in Canada. For more information, please visit the www.dermylex.ca website.
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.