TORONTO, April 30, 2008 (PRIME NEWSWIRE) -- Polydex Pharmaceuticals Limited (Nasdaq:POLXF) has announced the results for its fiscal year ended January 31, 2008. All figures are reported in U.S. dollars.
Fiscal Year End 2008 Fiscal Year End 2007
-------------------- --------------------
Sales $5,734,858 $6,499,287
Net Loss (953,033) (260,623)
Earnings (loss) per common share -
Basic (0.31) (0.09)
Diluted (0.31) (0.09)
Weighted average common
shares outstanding 3,072,846 3,063,884
The weak U.S. dollar has contributed significantly to the net loss incurred by the Company in fiscal 2008, the twelve-month period ended January 31, 2008. The rise of the Canadian dollar relative to the United States dollar has negatively impacted sales, gross margins, and a significant portion of the Company expenses, which are denominated in Canadian dollars. Although significant cost savings measures were implemented to impact almost all direct costs, including payroll reductions of more than 10%, these savings were not sufficient to offset the effect of the exchange rate increase of the Canadian dollar. More than one-third of the loss from continuing operations was incurred in the fourth quarter of fiscal 2008.
Total production volume in fiscal 2008 decreased by 31% compared to fiscal 2007. Again, the increase in the value of the Canadian dollar, which decreased margins and increased expenses, resulted in overall price increases to most of the Company's core product line. This resulted in a temporary decrease in demand for products from existing customers.
New drying equipment has been installed and management expects to start using the new equipment during the second quarter of fiscal year 2009. Management also anticipates increased demand for products from new and existing customers in the second half of fiscal 2009. Management expects that higher production capability will not only lead to increased sales but also that the consistent high quality of the finished powdered products will result in new markets becoming available in the coming year. The Company has already received increased interest in its high calibre dextran powders from potential customers who have tried less expensive versions available elsewhere in the world, as well as renewed interest from its well established customers on the dependable production of these products.
Ushercell, the Company's leading human pharmaceutical compound, is a cellulose sulphate gel envisioned as a method of contraception and potential prevention of the AIDS-causing virus HIV and other sexually transmitted diseases. The Company has been developing Ushercell for over a decade in collaboration with CONRAD, a reproductive health consortium of the Eastern Virginia Medical School with support from USAID, FHI, the Bill and Melinda Gates Foundation, and others. In January of 2007, Phase III clinical trials were suspended following a recommendation from an independent Data Safety Monitoring Board, to examine certain HIV conversion rates at some trial sites. Analysis of the data concluded that there was no statistical difference in the conversion rates and further investigation of the trials, and Ushercell, is underway in an attempt to determine a biological cause for the unexpected sero-conversions.
While the Company awaits results of the further analysis of the halted clinical trials of Ushercell, management expects that in fiscal 2009 it will focus resources primarily on the long-standing strengths of its core product line. Since Ushercell was not being marketed commercially and the Company received no financial payments from the project, suspension of the Ushercell Phase III trials has not impacted our existing sales or revenue, nor has it affected the strength of our daily business operations.
The key objective for fiscal year 2009 is for Polydex to maintain a steady progress with increasing production of our core products, maintain the highest level of production quality and meet the growing demands of our customer base.
A copy of the Company's Annual Report on Form 10-K, including its complete fiscal year end financial statements, is available at the company website at www.Polydex.com.
Polydex Pharmaceuticals Limited, based in Toronto, Ontario, Canada, is engaged in the research, development, manufacture and marketing of biotechnology-based products for the human pharmaceutical market, and also manufactures bulk pharmaceutical intermediates for the worldwide veterinary pharmaceutical industry.
The Polydex Pharmaceuticals Limited logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3414
Note: This press release may contain forward-looking statements, within the meaning of the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended, regarding Polydex Pharmaceuticals Limited, including, without limitation, statements regarding expectations about future revenues or business opportunities and developments relating to Ushercell or other potential research projects. These statements are typically identified by use of words like "may," "could," "might," "expect," "anticipate" or similar words. Actual events or results may differ materially from the Company's expectations, which are subject to a number of known and unknown risks and uncertainties including but not limited to changing market conditions, future actions by the United States Food and Drug Administration or equivalent foreign regulatory authorities as well as results of pending or future clinical trials. Other risk factors discussed in the Company's filings with the United States Securities and Exchange Commission may also affect the actual results achieved by the Company.