TORONTO, April 30, 2009 (GLOBE NEWSWIRE) -- Polydex Pharmaceuticals Limited (OTCBB:POLXF) (the "Company") reports financial results for its fiscal year ended January 31, 2009. All figures are reported in U.S. dollars.
Fiscal Year End 2009 Fiscal Year End 2008
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Sales $ 4,824,906 $ 5,734,858
Net Loss (1,591,470) (885,211)
Loss per common share (0.52) (0.29)
Weighted avg. common
Shares outstanding
(basic and diluted) 3,072,846 3,072,846
Management is continuing to focus on the manufacture and sales of the core product lines that have traditionally been the backbone of the Company. Amid the continued instability of the global marketplace, some producers of Dextran and Dextran derivatives may cease to produce these lines of products, opening new potential opportunities to the Company to increase production and sales of these key products. The Company has been receiving increased interest for its products, particularly the higher-margin powdered products, and management is actively responding to these enquiries.
The Company is well positioned to take advantage of this increased interest as a result of having invested significant effort and capital into the upgrade and replacement of its spray drying equipment. The last steps of implementation are underway and when complete, should ensure consistent production of the highest quality product, allowing the Company to satisfy the interest in powdered products being received from large pharmaceutical companies, some of whom have not only researched and tested alternative sources but who have also visited the Toronto plant to confirm their desire to continue or expand their relationship with Polydex Pharmaceuticals.
Fiscal 2009, the period ending January 31, 2009, was a very challenging year for the company. Reduced orders from some of its customers coupled with the volatility of the currency exchange between the Canadian and U.S. dollars significantly affected cash flows and profitability. As well, when estimated future cash flows are less than the carrying value of an asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. This year, the Company has incurred an impairment loss of $550,956, which is included in the increased Net Loss for the year.
Management made some difficult decisions to drastically reduce costs of operation, including the closure of the plant for 8 weeks during the fiscal year, payroll reductions, management compensation reduction, implementation of shorter plant hours of work when appropriate, together with further reductions achieved in raw material pricing, plant repairs, insurance, legal, consulting and reporting costs.
The Company's ability to continue as a going concern is in doubt, as it is dependent on its ability to attain profitable operations, and affecting its ability to meet Company liabilities as they come due. The outcome of these matters is dependent on factors outside the Company's control and cannot be predicted at this time. However, if management's plans to achieve profitability and liquidity requirements fall short, management intends to seek other sources of investment from new or existing investors, creditors and customers.
The Company has positive working capital of $1,359,946 as at January 31, 2009.
The Company shares continue to be 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.
The Polydex Pharmaceuticals Limited logo is available at http://www.globenewswire.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 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 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.