TORONTO, June 14, 2007 (PRIME NEWSWIRE) -- Polydex Pharmaceuticals Limited (Nasdaq:POLXF) is pleased to report financial results of operations for the first quarter of fiscal 2008, ending April 30, 2007.
Q 1, ending Q 1, ending
4/30/2007 4/30/2006
----------- -----------
Sales $ 1,347,133 $ 1,433,673
Net Income (loss) before
income taxes (134,238) 239,476
Earnings (loss) per common
share - basic (0.04) 0.08
Earnings (loss) per common
share - diluted (0.04) 0.08
Weighted average common
shares outstanding
- basic 3,072,846 3,058,896
-diluted 3,072,846 3,080,393
Sales in the first quarter of fiscal 2008, ending April 30, 2007 were slightly less than the comparable period last year. Repairs to a key component of the production line resulted in outsourcing of spray-dried product and resulted in lower sales of higher margin product. The earnings for the same period last year were impacted by a deferred gain related to the sale of the veterinary product assets to Sparhawk in 2004. Without that gain and the related interest, the Company would have incurred a net loss of $117,006 and the loss per share would have been $(0.04) for the quarter ended April 30, 2006.
Management has been successfully focusing on cost reduction, resulting in decreases in selling, promotion, general and administrative expenses including legal, insurance, consulting and reporting costs.
Refurbishment of the powdered production facility is expected to be substantially completed by the end of the third quarter of fiscal 2008. Overall capital expenditures during this first quarter of fiscal 2008 amounted to $737,743 and capital improvement costs are expected to continue through the remainder of fiscal 2008, although at a decreasing rate as the construction nears completion.
Demand for the Company's core dextran-based products remains strong, particularly from its European customer base, and the Company anticipates that completed improvements to the plant and equipment will not only increase production capacity, but also improve the quality of its products, leading to increased revenue in the fourth quarter of fiscal 2008.
As of April 30, 2007, the Company had cash and cash equivalents of $1,626,590 as well as $862,813 in investments available for sale. The Company's balance sheet identifies assets including property, plant, equipment and other intangible assets valued at $10,376,162 at the close of the first quarter of fiscal 2008. The Company believes that, based upon the current levels of revenues and spending, its existing working capital resources will be sufficient to support continuing operations for the foreseeable future.
The Company is awaiting results of a clinical trial conducted in Brazil to assess the safety and effectiveness of its lead human compound known as Ushercell, a cellulose sulphate gel compound, for the treatment of bacterial vaginosis (BV). Earlier trial results have demonstrated a consistent safety profile when used vaginally, and recommended that Ushercell should be further studied to assess its effects on BV, the most common bacterial disorder among reproductive age women worldwide.
As reported on January 31, 2007, large-scale Phase III clinical trials of Ushercell to assess effectiveness in the prevention of HIV were halted as a precautionary measure when an Independent Data Monitoring Committee detected an increased rate of HIV conversion at some of the trial sites. Independent investigations of those trials and the interim data are currently being conducted, and findings of these investigations are expected later in the year. At this time, the cause of the detected increase in HIV has not yet been determined.
George Usher, President and CEO of Polydex, said, "Prevention of HIV is a noble and worthy pursuit being conducted by some of the most respected and revered scientists in the world. Ushercell's consistent safety profile over the last decade raised our hopes that it might also be effective at reducing the risk of HIV acquisition, and we look forward to applying the knowledge gained from these trials to future endeavours."
Also, looking to the future Mr. Usher added, "Ushercell continues to hold promise in other commercial applications, particularly demonstrating significant effectiveness at pregnancy prevention in earlier Phase II studies carried out in the United States."
Funding for the research and development of Ushercell has largely been borne by third party private and/or public sector groups and the Company has no commitment to repay the funding or to purchase the results of the research. The cancelled trial status has not impacted the Company's existing sales or revenue, nor has it affected daily business operations. Further development of Ushercell remains pending until receipt of the findings from the ongoing independent investigations of the Phase III HIV trials mentioned above.
The Company's Annual Report has recently been published and is now available at the website, or by contacting Investor Relations at 1-877-945-1621.
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.
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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.