Editors:
Dimethaid Research announces six month financial results
TORONTO, Jan. 19 /CNW/ - Dimethaid Research Inc. (TSE: DMX) today
reported consolidated fiscal 2001 financial results for the six months ended
November 30, 2000.
For the six months ended November 30, 2000, the Company incurred a net
loss of $4.1 million ($0.10 per share) compared with a loss of $8.1 million
($0.21 per share) for the corresponding period in 1999. Last year's loss
included $6.0 million in research and development expenses incurred by Oxo
Chemie AG for the development of WF10, a proprietary macrophage regulator.
There were no corresponding expenses in the current fiscal year. Excluding
research and development expenses at Oxo Chemie, the net loss was $2.1 million
for the six months ended November 30, 1999.
Consolidated sales for the first half of fiscal 2001 were $513,000,
compared to $661,000 for the same period in fiscal 2000. The decrease in sales
was a result of continuing raw material shortages experienced by the contract
manufacturer for Dioptic Laboratories' products. Nevertheless, on the positive
side, gross margins improved from 36.3% to 46.2%.
Operating expenses for the first six months were $4.6 million, compared
to $8.6 million for the prior year. Excluding the expenses incurred by Oxo
Chemie, the operating expenses for the Company for the six months ended
November 30, 1999 were $2.6 million. The increase in the current year was
primarily attributable to research and development expenses as the Company
concluded its Phase III clinical trial with PENNSAID(R) Topical Solution in
October 2000 and the subsequent New Drug Submission to Health Canada. In
addition, administrative expenses increased due to the commercial scale up at
our manufacturing facility in Québec.
During the first six months of the current fiscal year, the Company
advanced $1.6 million to Oxo Chemie in the form of secured loans, invested
$1.2 million in plant and equipment in anticipation of the production start-up
and spent $0.7 million to build up PENNSAID(R) inventory for the upcoming
commercial launch in the United Kingdom.
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