TORONTO, Dec. 12, 2008 (GLOBE NEWSWIRE) -- Polydex Pharmaceuticals Limited (OTCBB:POLXF) reports financial results for its third fiscal quarter, the three-month period ended October 31, 2008.
POLYDEX PHARMACEUTICALS LIMITED AND SUBSIDIARIES
THIRD QUARTER RESULTS, FISCAL 2009
QUARTER ENDED: October 31, 2008
(Unaudited figures, stated in US dollars)
Quarter Ended Quarter Ended
10/31/08 10/31/07
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Sales $ 1,373,963 $ 1,357,681
Net Income (loss) (418,680) (237,544)
Earnings (loss) per common share (0.14) (0.08)
Weighted avg. common shares
outstanding (basic and diluted) 3,072,846 3,072,846
EBITDA, (a representation of the Company's earnings before calculation of interest, taxes, depreciation and amortization, and an approximate measure of the Company's operating cash flow) for the nine-month period ending October 31, 2008, is improved from the same period in the previous year, and amounts to negative $70,443. This is especially encouraging in light of the fact that the Company's fixed asset purchases are greatly reduced due to the completion of the spray dryer installation and refurbishment of the plant earlier this year. EBITDA for the same period last year was negative $110,889.
The loss in the current quarter was largely the result of equipment problems, which have been corrected and are not expected to reoccur in the future.
Amid the turbulence of the global marketplace, and the volatility of the currency exchange between the Canadian and U.S. dollars, the Company has experienced sustained challenges that have adversely affected cash flows and profitability. In particular, the worldwide increase in the price of commodities has resulted in lowered hog production, especially in Europe, where the Company has traditionally derived a substantial portion of its sales.
In response, management has reacted with a number of rigorous cost-saving measures while intensifying marketing efforts, resulting in significant interest from potential new customers in Europe and elsewhere for the higher margin powdered products that the Company's investment in the plant refurbishment was intended to service.
George Usher, President and CEO is optimistic about the prospects for sales in the coming year, saying, "A number of our customers that have also been facing significant pressures in this global economy have indicated their intention to reinstate and potentially increase orders, particularly in our powdered product line, and that encourages us to look forward to a revitalization of production and revenues in the coming year."
In early December of 2008, an abstract published in PLos One, a science and research publication, provided assessment from the halted Phase III clinical trial of the Company's Ushercell compound in Nigeria. Ushercell was engaged in these clinical trials to ascertain its viability as a potential microbicide for use in prevention of HIV and other sexually transmitted infections, until those trials were suspended when anomalous numerical findings were revealed at another clinical trial site location during a scheduled independent monitoring of the interim data. The conclusions from this most recent assessment included hypotheses that early closure of the trial, poor patient retention, and possible low adherence to product use impaired the researchers' ability to detect the effects of using Ushercell, and specifically concluded that "Cellulose Sulfate (Ushercell) gel appeared to be safe in the evaluated study population but (we) found insufficient evidence that it prevented male-to-female vaginal transmission of HIV, gonorrhea or chlamydial infection. The early closure of the trial compromised the ability to draw definitive conclusions about the effectiveness of cellulose sulfate against HIV." Management intends to pursue the development of Ushercell as a contraceptive.
This past fiscal quarter saw the suspension of trading in the Company's shares from the Nasdaq Capital Market on September 12, 2008, as a result of the decline of the bid price below $1.00. Since that time, the Company shares have been quoted on the Pink Sheet platform (www.pinksheets.com), where the Company is currently identified as a Pink Quote OTCBB Transparent company, one that may be quoted both on the Pink Quote system and the Over The Counter Bulletin Board (OTCBB).
Polydex Pharmaceuticals Limited, based in Toronto, Ontario, Canada, is engaged in the 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. Company website: www.Polydex.com
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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 or potential research projects. These statements are typically identified by use of words like "may", "could", "might", "expect", "anticipate", "believe", 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 we 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.