I'm assuming everyone has seen this by now, but it never hurts to post...
Dimethaid Research announces fiscal 2001 financial results
-Teleconference to be Held Tomorrow-
TORONTO, Aug. 16 /CNW/ - Dimethaid Research Inc. (TSE: DMX) today
reported consolidated financial results for the fiscal year 2001. Unless
specified otherwise, all amounts are in Canadian dollars.
Consolidated revenues for the fiscal year ended May 31, 2001 increased
112% to $2.41 million from $1.14 million in fiscal year 2000, primarily due to
revenues of $1.43 million that were generated out of the United Kingdom for
PENNSAID(R) Topical Solution. In November 2000, PENNSAID(R) was approved in
the U.K. for the treatment of the symptoms of osteoarthritis and was launched
by Provalis Healthcare Ltd. in March 2001, under a sales and marketing
agreement that entitles the Company to an undisclosed percentage of all sales
revenues.
For fiscal year 2001, Dimethaid reported a net loss of $13.74 million or
$0.33 per common share. These results compare with a net loss of $13.75
million or $0.34 per common share for fiscal year 2000. The current year loss
included a $4.48 million distribution rights writedown. These rights
constitute consideration, in cash and common stock, paid out in June 1993 for
an exclusive right to market and distribute Oxo Chemie's products in Canada.
The Company has fully amortized these rights as of May 31, 2001.
"Fiscal year 2001 marked the first regulatory approval for our lead
product, PENNSAID(R) Topical Solution in the United Kingdom," said Rebecca
Keeler, President and CEO. "We look forward to building on this momentum as we
continue our preparations for Europe and North America."
Other 2001 Highlights
- Commenced the Mutual Recognition Procedure seeking marketing approval
for PENNSAID(R) in European Union member states
- Completed an additional Phase III multi-centre study with PENNSAID(R)
for the treatment of the pain, stiffness and impaired physical
function associated with osteoarthritis
- Filed a New Drug Submission for PENNSAID(R) in Canada
- Concluded a private placement agreement with Acqua Wellington North
American Equities Fund, Ltd. for equity financing of up to $50 million
Subsequent to Year-End
- Concluded a distribution agreement with A.S. Bryden & Sons (Barbados)
Ltd. for PENNSAID(R) in twelve Caribbean countries
- Entered into a letter of intent to acquire the remaining 80% of
Oxo Chemie AG
Total operating expenses increased 9% to $15.98 million for the year
ended May 31, 2001 compared with $14.66 million for the previous year, which
included Oxo Chemie research and development expenditures of $8.11 million.
These expenditures were accounted for as advances to Oxo Chemie for research
and development, and were expensed as incurred by Oxo. They were fully
expensed by the Company in fiscal year 2000.
Research and development expenses increased to $3.92 million for the year
ended May 31, 2001 from $1.48 million for fiscal year 2000, primarily due to
ongoing clinical research costs and for international regulatory filing fees.
Fiscal year 2001 administrative expenses of $5.59 million were up 40%
over $3.98 million in fiscal year 2000. These expenses reflect the first full
year of operations at the Québec manufacturing facility, acquired in February
2000. Plant staffing has increased to 34 employees from 14 and the Company
continues to recruit technical staff to meet its quality requirements in
support of a pre-approval inspection by the U.S. Food and Drug Administration.
Headquarters staffing has increased to 51 in fiscal 2001 from 38 in fiscal
2000, primarily in Regulatory Affairs and in Clinical Sciences.
Selling and marketing expenses for the year ended May 31, 2001 were $1.36
million compared with $0.80 million for the year ended May 31, 2000. This
represents a 70% increase and is attributable to market research, advertising
and media planning expenses incurred in preparation for the launch of
PENNSAID(R).
Amortization increased substantially for the year ended May 31, 2001 at
$5.09 million compared with $0.23 million for the year ended May 31, 2000,
primarily due to the $4.48 million writedown of distribution rights acquired
in June 1993. Modest increases associated with the newly acquired
manufacturing facility and associated assets are also reflected in this
increase.
As at May 31, 2001, consolidated cash and cash equivalents amounted to
$0.91 million compared with $9.66 million as at May 31, 2000. In January 2001,
the Company entered into a private placement agreement with Acqua Wellington
North American Equities Fund, Ltd. for equity financing covering the sale of
up to $50 million of the Company's common shares. Pursuant to this agreement,
Dimethaid effected draws that resulted in the issuance of 481,520 shares of
common stock to Acqua Wellington for proceeds to the Company of $3.52 million.
Subsequent to the year-end, Dimethaid issued a further 195,746 shares of
common stock to Acqua Wellington for proceeds to the Company of $1.23 million.
"We ended fiscal 2001 with a much stronger financial position to support
our activities in the upcoming year. With additional regulatory approvals
anticipated in fiscal 2002, we look forward to expanding our commercial
presence worldwide and anticipate a substantial increase in revenues," said
Ms. Keeler. "Total operating costs, including R&D, administration and selling
and marketing expenses, are also expected to increase as we expand our drug
delivery platform, continue to conduct due diligence on Oxo Chemie AG and
prepare to launch PENNSAID(R) in new markets. With the planned upgrades and
expansion at our manufacturing plant over the next three years, we will be
well positioned to meet the anticipated demand for PENNSAID(R) in
international markets. Capital expenditures are expected to increase
substantially in fiscal 2002 and beyond, as we commit to construction
contracts and acquire new machinery and equipment to accommodate production
scale up. We look forward to leveraging our expertise in taking a product from
concept to market, to increase our revenues by expanding both our products and
our markets."
Note: The Company will hold a conference call to discuss these results at
10:00 a.m. Eastern time on August 17, 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 12:00 p.m. Eastern time on August 17
through to August 24, 2001. To access the replay, dial, 1-800-558-5253 and
enter reservation number 19553150.
<<
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
For the year ended May 31
(Numbers in thousands, except per 2001 2000
share data) $ $
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REVENUE 2,406 1,136
Cost of sales 625 744
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Gross profit 1,781 392
Interest 451 519
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2,232 911
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EXPENSES
Research and development by Oxo
Chemie - 8,111
Research and development 3,922 1,479
Administrative 5,588 3,982
Selling and marketing 1,358 797
Amortization 5,092 228
Interest 15 60
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15,975 14,657
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Net loss for the year (13,743) (13,746)
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Loss per common share (0.33) (0.34)
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CONSOLIDATED BALANCE SHEETS
As at May 31
2001 2000
(Numbers in thousands) $ $
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ASSETS
Current
Cash and cash equivalents 906 9,656
Accounts receivable 382 197
Notes receivable 2,385 795
Inventories 912 560
Prepaid expenses and other 119 467
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Total current assets 4,704 11,675
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Capital assets, net 6,255 4,384
Distribution rights - 4,479
Other intangibles, net - 157
Goodwill, net - 74
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Total assets 10,959 20,769
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LIABILITIES and SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued
liabilities 1,298 1,296
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Total liabilities 1,298 1,296
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Shareholders' equity
Capital stock 79,685 75,725
Cumulative translation adjustment (6) 23
Deficit (70,018) (56,275)
-------------------------------------------------------------------------
Total shareholders' equity 9,661 19,473
-------------------------------------------------------------------------
Total liabilities and shareholders'
equity 10,959 20,769
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>>
Dimethaid Research Inc. is a pharmaceutical company engaged in the
development and commercialization of innovative therapeutic products that
offer the potential to minimize the unwanted systemic effects of drug therapy
on the body. Dimethaid's proprietary drug delivery technology utilizes the
cell's tubule system to deliver drugs cell-to-cell. As a result, patients are
able to treat localized conditions, such as osteoarthritis, while limiting the
body's absorption of, and associated risks from, the medication. This
technology has been applied first to produce PENNSAID(R) Topical Solution. The
Company's business development strategy is to leverage its proprietary
transdermal delivery technology into additional commercial products. For
additional information on the Company, please visit www.dimethaid.com.
This release may contain forward-looking statements. Such statements
involve known and unknown risks, uncertainties and other factors outside of
management's control that could cause actual results to differ materially from
those expressed in the forward-looking statements. A discussion of such risk
factors is included in the Company's AIF filed with the OSC and includes,
without limitation, risks regarding product development, clinical trials,
dependence on third parties for development and licensing arrangements, and
risks involving regulatory approval of products, and licenses and patents. The
Company undertakes no obligation to publicly revise these forward-looking
statements to reflect subsequent events or circumstances.
%SEDAR: 00002418EB |
