Here we are:
Attention Business/Financial Editors:
Dimethaid Research announces nine month financial results and teleconference call notification
TORONTO, April 19 /CNW/ - Dimethaid Research Inc. (TSE: DMX) today
reported consolidated fiscal 2001 financial results for the nine months ended
February 28, 2001.
For the nine months ended February 28, 2001, the Company incurred a net
loss of $7.6 million ($0.18 per share), compared with a net loss of $11.7
million ($0.30 per share) for the nine months ended February 29, 2000. Last
year's loss included $8.1 million in research and development expenses
incurred by Oxo Chemie AG for the development of WF10, a proprietary
macrophage regulator. There were no corresponding Oxo expenses in the current
fiscal year.
Consolidated sales for the nine months ended February 28, 2001 were $0.8
million, compared to $0.9 million for the nine months ended February 29, 2000.
Continuing raw material supply issues impacted sales in the Company's
ophthalmic division during this quarter and resulted in gross profit for the
nine months ended February 28, 2001 of 37.2%, compared to 41.2% for the
previous year. In addition, there was a change in the sales blend with an
increase in hospital contract sales, which traditionally command a lower
margin.
Operating expenses were $8.3 million for the nine months ended February
28, 2001, compared to $4.3 million (exclusive of the Oxo Chemie research and
development charges) for the nine months ended February 29, 2000. Due to the
expansion of the Company's product pipeline, research and development
expenditures increased $1.7 million over last year. Currently, studies for the
selection of the optimal active ingredient and compatibility with the patented
topical carrier are being conducted for an antifungal indication. As the
Company prepares for the North American launch of PENNSAID(R), selling and
marketing expenses have increased $0.4 million over last year. Administrative
expenses increased $1.7 million over last year, which included start-up
expenses at the Québec plant, acquired in mid-February 2000. Depreciation of
plant equipment acquired throughout this start-up has also increased the
Company's overall depreciation expense by $0.2 million over the same period in
the previous year.
At February 28, 2001 the Company's cash position was $3.0 million,
compared to $11.4 million for the previous year. The private placement
agreement with Acqua Wellington North American Equities Fund, Ltd., for up to
$50 million in equity financing in January 2001, allowed the Company to
complete the first draw down of $2.6 million during the third quarter, against
the issuance of 351,947 common shares. The notes receivable of $2.4 million
represent loans to Oxo Chemie.
"We continued to make progress in the third quarter towards the
commercialization of PENNSAID(R) Topical Solution with the selection of
Provalis Healthcare Ltd. as the exclusive distributor for the United Kingdom
and commencement of the Mutual Recognition procedure for distribution in the
European Union member states. We expect further developments for the rest of
the calendar year, with the imminent filing of applications with a number of
European Member States in anticipation of additional approvals during the
summer, further expanding PENNSAID(R)'s market" said Rebecca Keeler, President
and CEO. "Negotiations for the distribution of PENNSAID(R) in these markets
are progressing. In anticipation of supplying both the future needs of the UK
and other European markets, as well as the North American markets, we have
continued to stockpile PENNSAID(R) and expand our manufacturing staff and
facilities in Québec to accommodate the anticipated growth."
Note: The Company will hold a conference call to discuss these results
and provide a corporate update at 11:00 a.m. EST on April 20, 2001. A live
audio webcast of the conference call will be available through
www.dimethaid.com and www.newswire.ca/webcast/. Please connect to these
websites at least 10 minutes prior to the conference call to ensure adequate
time for any software download that may be needed to hear the webcast. A
replay of the webcast will be available shortly after the completion of the
call at www.dimethaid.com and www.newswire.ca/webcast/. A replay of the
conference call will also be available by telephone from approximately 1:00
p.m. EST on April 20 through to April 25, 2001. To access the replay, dial, 1-
800-558-5253 and enter reservation number 18647958.
SELECTED NINE MONTH FINANCIAL HIGHLIGHTS
As at February 28, 2001 and February 29, 2000 2001 2000
Unaudited $ $
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(Numbers in thousands, except per share data)
Revenue 754 893
Total expenses 8,253 12,390
Net loss for the period (7,597) (11,700)
Loss per common share $(0.18) $(0.30)
Cash and cash equivalents 2,968 11,443
Total shareholders' equity 14,806 20,723 |
