Dimethaid expects Q1 sales to top $1.5-million (U.S.)
2004-09-15 14:46 ET - News Release
Mr. Jodi Peake reports
DIMETHAID QUARTERLY SALES EXPECTED TO DOUBLE
Dimethaid Research Inc. expects first quarter sales of its lead product Pennsaid to top $1.5-million (U.S.), representing a 120-per-cent increase over the comparable period last year. The company also projects continued growth in worldwide sales throughout the remainder of the fiscal year.
"Pennsaid is poised to become the prescription treatment of choice for single-joint osteoarthritis," said Patrick Gushue, director of marketing and sales. "A sales increase of 120 per cent really shows how quickly the product is gaining momentum."
Pennsaid sales have been supported by the first publication of clinical results in the Canadian Medication Association journal.
Total revenue for the first quarter, ended Aug. 31, 2004, will exceed $1.6-million (U.S.). The company expects to report its first quarter results before the annual general meeting on Sept. 21.
Business development
Dimethaid is continuing to execute its strategic growth plan by expanding licensing and distribution into new markets. The company will ship the first Pennsaid order to Portuguese partner Jaba Farmaceutica in late September, and Vianex, the company's partner in Greece, is expected to begin its marketing campaign later this fiscal year.
Cash management
Dimethaid is effectively managing its cash position. Despite earlier cautions that the company could run out of money this summer, Dimethaid retained $654,000 (U.S.) in cash and cash equivalents, as of Aug. 31, 2004.
"Management has a strong record of raising capital in difficult markets," said Rebecca E. Keeler, president and chief executive officer. "Once we get through this period of uncertainty, we can resolve the financial situation and move ahead with our business plan."
Dissident bid for control
The company also commented on yesterday's statements from a shareholder group attempting to seize control. The dissidents have not yet adequately addressed any of the issues identified by management during the continuing proxy solicitation, other than contradicting the suggested staff cuts and sale of Dimethaid's Varennes plant, described in their information circular.
Instead, the dissidents have tried to take credit for recent share price increases that immediately followed the company's response to the dissident circular and the endorsement of management's board nominees by Fairvest, Canada's leading, independent proxy advisory firm.
"With little, if anything, to contribute on their own, the dissidents have continued criticizing the company while taking credit for its accomplishments," said Ms. Keeler. "As the marketplace is beginning to signal, we are starting to undo some of the damage these people have caused."
Food and Drug Administration review
Dimethaid has the in-house expertise to get products through the regulatory process, as evidenced by Pennsaid approvals in Canada, the United Kingdom. and several European Union countries.
As North America's first topical NSAID, the product presents unique challenges to regulatory agencies. The Dimethaid drug development team comprises seasoned professionals with a long record of winning drug approvals. They are working aggressively on getting U.S. approval and have promptly responded to all queries during the continuing review process. Dimethaid is confident of final approval in the U.S., a belief supported by the acceptance of its clinical studies in peer-reviewed journals.
Under existing U.S. legislation, Pennsaid will be entitled to claim a period of marketing exclusivity lasting up to three years from the date of FDA approval.
Shareholders who have already submitted a yellow proxy can change their vote by completing a BLUE proxy with today's date. To expedite tabulation before the 9 a.m. EST deadline on Sept. 17, proxies can be faxed to Kingsdale shareholder services at 1-416-867-2271. Additional help can be obtained by calling Kingsdale at 1-866-749-5464.
WARNING: The company relies upon litigation protection for "forward-looking" stateme |
