Dimethaid released 3rd quarter results.
Here's part of the release:
TORONTO, April 10 /CNW/ - Dimethaid Research Inc. (TSE: DMX) today
reported its consolidated fiscal 2000 interim financial results and provided a
general corporate update, for the period ending February 29, 2000.
In December 1999, the Company concluded a treasury offering of
approximately 2.5 million shares, raising gross proceeds of $10 million
(Canadian) which resulted in approximately $9.1 million being added to the
Company's cash position. The offering was fully subscribed within a very short
time frame and placed exclusively into institutional accounts, thereby
fulfilling a key objective, which was to increase institutional ownership. The
closing of this offering was followed by a series of management meetings with
institutional investors across North America who were unable to participate in
the offering, in order to increase the exposure of the Company with this
important constituency.
A portion of the proceeds raised was used for the acquisition of a
manufacturing facility in Qu‚bec. The balance will be used for commercial
production scale up of PENNSAID(R), continued development of Dimethaid's
product pipeline, and for general corporate purposes, which included the
repayment of the outstanding mortgage on the Company's head office, thereby
eliminating all long-term debt.
"Securing our own manufacturing facility was necessary to assure the
production of commercial quantities of PENNSAID(R) in anticipation of further
regulatory marketing approvals," said Rebecca Keeler, President and CEO of
Dimethaid Research. "This acquisition enables us to improve efficiencies,
reduce costs, and increase gross margins for PENNSAID(R). It also provides us
with a fully equipped research laboratory, which will facilitate the
development of an expanded product pipeline. This acquisition also represents
a significant step towards our goal of building a fully integrated
pharmaceutical company that has the ability to control all aspects of product
development, from concept through to commercialization. We believe this
control will result in greater returns for our shareholders."
The Company's open-label safety study of PENNSAID(R) was successfully
concluded during the third quarter. This study, conducted over the past five
years, enrolled over 3,700 patients without a single report of any of the
serious gastrointestinal or renal adverse drug reactions, which are seen with
the oral use of NSAIDs. Given that, according to Statistics Canada, one
Canadian dies every 4 1/2 hours from the serious side affects of oral NSAID
use, the Company anticipates widespread receptivity to PENNSAID(R) from both
physicians and patients, following its launch.
FINANCIAL REVIEW
For the nine months ended February 29, 2000, the Company incurred a net
loss of $11.7 million or $0.30 per share. These results compare with a net
loss of $11.6 million or $0.31 per common share for the nine months ended
February 28, 1999. Consolidated sales for the nine-month period ($0.9 million)
were similar to those for the previous fiscal year ($0.9 million). The gross
margin was 41%, which compares with 38% one year earlier and 36% in the last
quarter. The Company's cash position increased significantly to $11.4 million
compared to $4.3 million a year ago, as a result of the public offering and
the exercise of stock options. Based on year-to-date as well as anticipated
expenditures, the Company has over two years of cash on hand.
Total operating expenses, including the research and development
expenditures of Oxo Chemie AG, increased to $12.4 million in fiscal 2000 from
$12.2 million in the previous year. As Dimethaid's contribution to Oxo
Chemie's research and development was fully funded by the end of the 1998
fiscal year, these expenditures have no impact on the Company's cash position.
On a pro forma basis, the loss per common share, excluding this prepaid R&D
investment in Oxo Chemie, would be $0.09 for fiscal 2000, compared to $0.10
for fiscal 1999.
As the Company's investment in Oxo Chemie has now been fully amortized,
their ongoing expenses will no longer impact Dimethaid's earnings. Oxo
Chemie's pivotal Phase III double-blind, placebo-controlled study to evaluate
the effect of WF10 on clinical progression in HIV-patients on stable therapy
with CD4 cell count less than or equal to 50/mL, has randomized over 200 of
the 240 patients to be enrolled. A number of the independent investigators
will report at the Salvage Therapy conference in Chicago, that therapy with
WF10, a macrophage regulator, is a unique approach for the treatment of
advanced HIV disease. They have noted that patients on antiviral therapy with
CD4 less than 50 cells/mL are at risk for developing clinical diseases/death
and that WF10 appears safe and easy to administer. Final analysis of the study
will be presented after its completion. |
