NASDAQ: NVCN
TSX: NVC
VANCOUVER, Nov. 14, 2016 /CNW/ - Neovasc Inc.
("Neovasc" or the "Company") (NASDAQ: NVCN) (TSX:
NVC) today announced financial results for the quarter ended
September 30, 2016 (all figures in US
dollars unless otherwise indicated).
"While the Company has faced litigation headwinds, we remain
committed to advancing our core technologies in order to provide
new treatments for patients suffering from advanced heart disease,"
commented Neovasc CEO, Alexei Marko.
"Reducer continues to demonstrate its clinical relevance with a
seventh consecutive quarter of sales growth and Tiara's clinical
results and physician feedback continue to be very encouraging as
we advance the product towards commercialization in order to
provide a new treatment for mitral valve disease."
CardiAQ Litigation Update
Subsequent to the quarter's
end, the findings of the Federal District Court regarding
several post-trial motions stemming from a trial jury's verdict
in May 2016 were announced. CardiAQ filed suit against
Neovasc in the United States District Court for the District
of Massachusetts in 2014. The order ruled in favor of
CardiAQ on the issue of inventorship of Neovasc's '964
Patent. At the same time, the judge denied CardiAQ's motion
for an injunction that would have shut down the development of
Tiara™, thus allowing Neovasc to continue development and
commercialization of Tiara, while also denying Neovasc's motions
for a new trial. The judge upheld the jury's verdict
and US$70 million award against Neovasc, and
awarded US$21 million in enhanced damages to that award.
Interest costs and fees may be due on any award granted by the
court.
The Company intends to continue to vigorously defend itself in
the litigation with CardiAQ and as such the outcome of these
matters, including whether the Company will be required to pay some
or all of the US$91 million awards,
is not currently determinable. Upon entry of a judgment by
the trial court, Neovasc will immediately seek to stay the payment
of the US$91 million damages awards, until after an
appeal to the United States Court
of Appeals for the Federal Circuit is complete. The Company
will appeal the validity of the awards, as well as the ruling on
inventorship. The appellate process may take up to a year to
complete.
Litigation is inherently uncertain. Therefore, until these
matters have been resolved to their ultimate conclusion by the
appropriate courts, the Company cannot give any assurances as to
the outcome. If the Company is unsuccessful in its defense of
these claims, including any appeal of the verdict in the litigation
with CardiAQ, or is unable to settle the claims in a manner
satisfactory to the Company, it may be faced with significant
monetary damages that could exceed its resources, the loss of
intellectual property rights and damage to its competitive
position. These circumstances indicate the existence of
material uncertainty and cast substantial doubt about the Company's
ability to continue as a going concern. Additional
information regarding the ongoing litigation can be found in
Management's Discussion and Analysis of Financial Condition and
Results of Operations for the three and nine months ended
September 30, 2016 and 2015, which is
available on the Company's website at www.neovasc.com and on SEDAR
at www.sedar.com and EDGAR at www.sec.gov.
Results for the three months ended September 30, 2016 and 2015
Revenues
Revenues for the three months ended
September 30, 2016 were $3,034,000 compared to revenues of $2,473,687 for the same period in 2015, an
increase of 23%. The Company is focusing its business away
from its traditional revenue streams towards development and
commercialization of its own products, the Neovasc Reducer™ and the
Tiara. The Company started its sales of the Reducer in the
first quarter of 2015 as it initiated its focused commercialization
of the product in Europe.
Sales of the Reducer for the three months ended September 30, 2016 were $262,546, compared to $159,394 for the same period in 2015,
representing an increase of 65%. The Reducer has seen steady
quarter over quarter revenue growth since its launch in the first
quarter of 2015. The success of the commercialization of the
Reducer will be dependent on the amount of internal resources
allocated to the product, obtaining appropriate reimbursement codes
in various territories and correctly managing the referrals
process.
Revenues from consulting services for the three months ended
September 30, 2016 were $1,227,938, compared to $1,566,729 for the same period in 2015,
representing a decrease of 22%. The Company anticipates that
its consulting services revenue will decline in the long term as
its consulting customers continue to transition to becoming
contract manufacturing customers or cease being customers as they
move manufacturing in house. To highlight this trend, the
Company reports that a contract with a customer representing
approximately 5% of year to date revenue is in the process of being
wound up and will terminate at the end of 2016. Contract
manufacturing revenues for the three months ended September 30, 2016 were $1,543,516, compared to $737,336 for the same period in 2015,
representing an increase of 109%. The increase in revenue for
the three months ended September 30,
2016 compared to the same period in 2015 is primarily due to
the clearing of temporary delay in shipping to a single customer
during the period.
Cost of Goods Sold
The cost of goods sold for the
three months ended September 30, 2016
was $2,201,440, compared to
$1,573,068 for the same period in
2015. The overall gross margin for the three months ended
September 30, 2016 was 27%, compared
to 36% gross margin for the same period in 2015. The decrease
in the margin can be attributed to an increase in the cost of sales
for contract manufacturing, and a change in product mix toward
lower margin contract manufacturing product. The Company has
also seen its consulting services revenue margins decline as its
ability to charge higher fees for these services has decreased as
the transcatheter aortic valve market has matured. In
addition, the Company is experiencing higher cost of goods sold as
it has implemented a rigorous commercial stage quality system
required to meet the expectations of its more advanced
customers. These increases are not productive improvements
and result in an overall downward trend in margins.
Expenses
Total expenses for the three months ended
September 30, 2016 were $8,418,400, compared to $9,575,631 for the same period in 2015,
representing a decrease of $1,157,231
or 9%. The decrease in total expenses for the three months
ended September 30, 2016 compared to
the same period in 2015 reflects a $1,086,141 decrease in general and administrative
expenses, a $166,061 decrease in
product development and clinical trial expenses, and a $94,971 increase in sales and marketing expenses
as the Company expands its commercialization activities of the
Reducer in Europe.
Selling expenses for the three months ended September 30, 2016 were $208,884, compared to $113,913 for the same period in 2015,
representing an increase of $94,971,
or 83%. The increase in selling expenses for the three months
ended September 30, 2016 compared to
the same period in 2015 reflects an increase in costs incurred for
commercialization activities related to the Reducer. The
Company expects to continue to increase its selling expenses in
2016 as it continues its commercialization of the Reducer in select
countries in Europe.
General and administrative expenses for the three months ended
September 30, 2016 were $3,466,825, compared to $4,552,966 for the same period in 2015,
representing a decrease of $1,086,141
or 24%. The decrease in general and administrative expenses
for the three months ended September 30,
2016 compared to the same period in 2015 can be
substantially explained by a $923,541
decrease in litigation expenses and a decrease in other expenses of
$162,600.
Product development and clinical trial expenses for the three
months ended September 30, 2016 were
$4,742,691, compared to $4,908,752 for the same period in 2015,
representing a decrease of $166,061,
or 3%. The decrease in product development and clinical trial
expenses for the three months ended September 30, 2016 was due to a $465,210 decrease in other research and
development expenses and a $253,761
decrease in share-based payments, offset by a $498,480 increase in cash-based employee expenses
as the Company hired additional staff to advance product
development and a $54,430 increase in
depreciation.
Other Loss
The other loss for the three months ended
September 30, 2016 was $21,461,950, compared to other income of
$1,041,842 for the same period in
2015. As at September 30, 2016
the Company recognized a damages provision of $21 million for enhanced damages on certain trade
secret claims made by CardiAQ (see "Contractual Obligations and
Contingencies" in the Management's Discussion and Analysis of
Financial Condition and Results of Operations). In addition, during
the three months ended September 30,
2016 the Company had an increase in foreign exchange and
unrealized losses of $1,377,935 and a
decrease in interest income of $125,857 compared to the same period in 2015.
Losses
The operating losses and comprehensive losses
for the three months ended September 30,
2016 were $29,135,086 and
$28,836,990, respectively, or
$0.44 basic and diluted loss per
share, as compared with losses of $7,633,170 and $12,851,490, or $0.11 basic and diluted loss per share for the
same period in 2015. The $21,501,916 increase in the operating loss
incurred for the three months ended September 30, 2016 compared to the same period in
2015 consists of a $21,000,000
damages provision related to the judge award against the Company in
its litigation with CardiAQ, in a $1,377,935 increase in foreign exchange and
unrealized losses, a $125,857
decrease in interest income, a $94,971 increase in selling expenses, a
$87,296 increase in tax expenses,
partially offset by a $1,086,141
decrease in general and administrative expenses and a $166,061 decrease in product development and
clinical trial expenses.
Litigation expenses for the three months ended September 30, 2016 represent a loss of
$0.03 basic and diluted loss per
share compared to a loss of $0.04
basic and diluted loss per share for the same period in 2015.
To date, the Company has incurred significant costs in defending
itself in lawsuits filed by CardiAQ. Total litigation
expenses since the initial claims were filed in June 2014 are approximately $19.6 million and the Company expects that it may
require an additional $5 million to
cover additional litigation expenses up to and including appellate
court, if applicable (see "Contractual Obligations and
Contingencies" in the Management's Discussion and Analysis of
Financial Condition and Results of Operations).
Discussion of Liquidity and Capital Resources
Neovasc
finances its operations and capital expenditures with cash
generated from operations, lines of credit and equity
financings. As at September 30,
2016 the Company had cash and cash equivalents of
$25,480,683 compared to cash and cash
equivalents of $55,026,171 as at
December 31, 2015.
Cash used in operating activities for the three months ended
September 30, 2016 was $11,117,649, compared to $6,916,065 for the same period in 2015.
Cash expenditures on litigation (litigation expenses less change in
accounts payable related to litigation) were $4,309,062 and within accounts payable there was
$975,644 of litigation expenses
incurred but not paid for in connection with the litigation with
CardiAQ that will be paid in the following quarter. Cash
expenditures on research and development and clinical trials
(expenses less share based payments and depreciation) were
$4,321,501 as the Company furthered
the development of the Tiara and the Reducer and cash expenditures
on general and administrative expenses were $3,250,436. Inventory decreased by $510,269 during the period due to increased sales
and corresponding shipments occurring close the end of the
period
The Company's working capital, excluding the $91 million damages provision in connection with
the litigation with CardiAQ, is $27,470,257 as at September 30, 2016 compared to $54,274,867 as at December
31, 2015.
Unless the Company is successful in an appeal of the verdict, or
otherwise is successful in reducing the amount of the $91 million awards, the Company will require
significant additional financing in order to pay the damages and to
continue to operate its business. There can be no assurance
that such financing will be available on favorable terms, or at
all. These circumstances indicate the existence of material
uncertainty and cast substantial doubt about the Company's ability
to continue as a going concern.
Outstanding Share Data
As at November 14, 2016, the Company had
66,866,345 common shares issued and outstanding.
Further, the following securities are convertible into common
shares of the Company: 7,976,482 stock options with a weighted
average price of C$3.95. The
fully diluted share capital of the Company at November 14, 2016 is 74,842,827.
All financial information is prepared in accordance with
International Financial Reporting Standards, as issued by the
International Accounting Standards Board, and is expressed in U.S.
dollars.
Neovasc's unaudited condensed interim consolidated financial
statements and notes thereto for the three and nine months ended
September 30, 2016 and 2015 as well
as Management's Discussion and Analysis of Financial Condition and
Results of Operations will be posted on the Company's website at
www.neovasc.com and will be filed on SEDAR at www.sedar.com and
EDGAR at www.sec.gov. In addition to the summary contained herein,
readers are encouraged to review the unaudited condensed interim
consolidated financial statements and notes thereto for the three
and nine months ended September 30,
2016 and 2015 as well as the related Management's Discussion
and Analysis of Financial Condition and Results of Operations.
Conference Call and Webcast Information
Neovasc will
be hosting a conference call today at 4:30
pm ET to discuss these results. To participate in the
conference, dial 888 390 0546 or 416 764 8688. A recording of
the call will be available for 72 hours by calling 888 390 0541 or
416 764 8677 and using passcode 981053#. A link to the live
and archived audio webcast of the conference call will also be
available on the Presentations and Events page of the Investors
section of Neovasc's website at www.neovasc.com.
NEOVASC
INC.
|
Condensed Interim
Consolidated Statements of Financial Position
|
(Expressed in U.S.
dollars) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
25,480,683
|
|
$
|
55,026,171
|
|
|
Accounts
receivable
|
|
|
2,979,007
|
|
|
1,736,941
|
|
|
Inventory
|
|
|
1,058,741
|
|
|
598,136
|
|
|
Prepaid expenses and
other assets
|
|
|
401,969
|
|
|
146,590
|
|
Total current
assets
|
|
|
29,920,400
|
|
|
57,507,838
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
3,918,622
|
|
|
3,720,556
|
|
Total non-current
assets
|
|
|
3,918,622
|
|
|
3,720,556
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
33,839,022
|
|
$
|
61,228,394
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
2,450,143
|
|
$
|
3,232,971
|
|
|
Damages
provision
|
|
|
91,000,000
|
|
|
-
|
|
Total current
liabilities and total liabilities
|
|
|
93,450,143
|
|
|
3,232,971
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
161,658,013
|
|
|
161,505,037
|
|
|
Contributed
surplus
|
|
|
22,302,536
|
|
|
20,569,110
|
|
|
Accumulated other
comprehensive loss
|
|
|
(4,574,273)
|
|
|
(8,790,011)
|
|
|
Deficit
|
|
|
(238,997,397)
|
|
|
(115,288,713)
|
|
Total
equity
|
|
|
(59,611,121)
|
|
|
57,995,423
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
|
33,839,022
|
|
$
|
61,228,394
|
NEOVASC
INC.
|
Condensed Interim
Consolidated Statements of Loss and Comprehensive
Loss
|
For the three and
nine months ended September 30,
|
(Expressed in U.S.
dollars) (Unaudited)
|
|
|
|
|
Three months
ended September
30,
|
Nine months ended September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
|
|
Reducer
|
$
|
262,546
|
$
|
159,394
|
$
|
722,433
|
$
|
334,399
|
Product
sales
|
|
-
|
|
10,228
|
|
-
|
|
353,736
|
Contract
manufacturing
|
|
1,543,516
|
|
737,336
|
|
2,391,136
|
|
2,273,114
|
Consulting
services
|
|
1,227,938
|
|
1,566,729
|
|
3,638,105
|
|
4,744,645
|
|
|
3,034,000
|
|
2,473,687
|
|
6,751,674
|
|
7,705,894
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
2,201,440
|
|
1,573,068
|
|
5,038,792
|
|
4,995,994
|
GROSS
PROFIT
|
|
832,560
|
|
900,619
|
|
1,712,882
|
|
2,709,900
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
208,884
|
|
113,913
|
|
554,905
|
|
363,213
|
General and
administrative expenses
|
|
3,466,825
|
|
4,552,966
|
|
16,721,354
|
|
10,414,394
|
Product development
and clinical
|
|
|
|
|
|
|
|
|
trials
expenses
|
|
4,742,691
|
|
4,908,752
|
|
14,530,513
|
|
12,620,440
|
|
|
8,418,400
|
|
9,575,631
|
|
31,806,772
|
|
23,398,047
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
(7,585,840)
|
|
(8,675,012)
|
|
(30,093,890)
|
|
(20,688,147)
|
|
|
|
|
|
|
|
|
|
OTHER
(EXPENSE)/INCOME
|
|
|
|
|
|
|
|
|
Interest
income
|
|
25,723
|
|
151,580
|
|
161,522
|
|
470,011
|
Interest
expense
|
|
-
|
|
-
|
|
-
|
|
(2,538)
|
Damages
provision
|
|
(21,000,000)
|
|
-
|
|
(91,000,000)
|
|
-
|
Gain/(loss) on
foreign exchange
|
|
88,584
|
|
890,262
|
|
(2,014,669)
|
|
873,792
|
Unrealized loss on
damages provision
|
|
(576,257)
|
|
-
|
|
(576,257)
|
|
-
|
|
|
(21,461,950)
|
|
1,041,842
|
|
(93,429,404)
|
|
1,341,265
|
LOSS BEFORE
TAX
|
|
(29,047,790)
|
|
(7,633,170)
|
|
(123,523,294)
|
|
(19,346,882)
|
|
|
|
|
|
|
|
|
|
Tax
expense
|
|
(87,296)
|
|
-
|
|
(185,390)
|
|
-
|
|
|
|
|
|
|
|
|
|
LOSS FOR THE
PERIOD
|
$
|
(29,135,086)
|
$
|
(7,633,170)
|
$
|
(123,708,684)
|
$
|
(19,346,882)
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME/
|
|
|
|
|
|
|
|
|
(EXPENSE) FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
Exchange difference
on translation
|
|
(278,161)
|
|
(5,218,320)
|
|
3,639,481
|
|
(6,476,684)
|
Unrealized loss on
damages provision
|
|
576,257
|
|
-
|
|
576,257
|
|
-
|
|
|
|
|
|
|
|
|
|
LOSS AND
COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
FOR THE
PERIOD
|
$
|
(28,836,990)
|
$
|
(12,851,490)
|
$
|
(119,492,946)
|
$
|
(25,823,566)
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
|
(0.44)
|
$
|
(0.11)
|
$
|
(1.85)
|
$
|
(0.30)
|
NEOVASC
INC.
|
Condensed Interim
Consolidated Statements of Cash Flows
|
For the three and
nine months ended September 30,
|
(Expressed in U.S.
dollars) (Unaudited)
|
|
|
|
|
Three months
ended September
30,
|
Nine months ended September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Loss for the
period
|
$
|
(29,135,086)
|
$
|
(7,633,170)
|
$
|
(123,708,684)
|
$
|
(19,346,882)
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
215,108
|
|
133,157
|
|
562,088
|
|
337,484
|
|
Share-based
payments
|
|
580,221
|
|
877,434
|
|
1,811,210
|
|
3,197,828
|
|
Damages
provision
|
|
21,000,000
|
|
-
|
|
91,000,000
|
|
-
|
|
Accounts receivable
write down
|
|
697
|
|
-
|
|
5,556
|
|
-
|
|
Interest
income
|
|
(25,723)
|
|
(151,580)
|
|
(161,522)
|
|
(502,498)
|
|
Interest
expense
|
|
-
|
|
-
|
|
-
|
|
2,538
|
|
|
(7,364,783)
|
|
(6,774,159)
|
|
(30,491,352)
|
|
(16,311,530)
|
|
|
|
|
|
|
|
|
|
Net change in
non-cash working capital items:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(980,522)
|
|
(427,432)
|
|
(1,154,457)
|
|
(234,323)
|
|
Inventory
|
|
510,269
|
|
(241,663)
|
|
(409,886)
|
|
(262,433)
|
|
Prepaid expenses and
other assets
|
|
20,642
|
|
161,823
|
|
(234,565)
|
|
(22,441)
|
|
Accounts payable and
accrued liabilities
|
|
(3,326,228)
|
|
101,286
|
|
(940,349)
|
|
776,126
|
|
|
(3,775,839)
|
|
(405,986)
|
|
(2,739,257)
|
|
256,929
|
|
|
|
|
|
|
|
|
|
Interest paid and
received:
|
|
|
|
|
|
|
|
|
|
Interest
received
|
|
22,974
|
|
264,080
|
|
159,294
|
|
485,978
|
|
Interest
paid
|
|
-
|
|
-
|
|
-
|
|
(2,538)
|
|
|
22,974
|
|
264,080
|
|
159,294
|
|
483,440
|
|
|
|
|
|
|
|
|
|
Net cash applied
to operating activities
|
|
(11,117,648)
|
|
(6,916,065)
|
|
(33,071,315)
|
|
(15,571,161)
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITES
|
|
|
|
|
|
|
|
|
|
Redemption of
guaranteed investment
|
|
|
|
|
|
|
|
|
|
certificates
|
|
-
|
|
6,186,656
|
|
-
|
|
9,322,492
|
|
Purchase of property,
plant and equipment
|
|
(15,174)
|
|
(467,512)
|
|
(546,709)
|
|
(1,734,646)
|
Net cash (applied
to)/received from
|
|
|
|
|
|
|
|
|
investing
activities
|
|
(15,174)
|
|
5,719,144
|
|
(546,709)
|
|
7,587,846
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
-
|
|
-
|
|
-
|
|
(164,364)
|
|
Proceeds from share
issue pursuant to
|
|
|
|
|
|
|
|
|
|
an underwritten
public offering, net of
|
|
|
|
|
|
|
|
|
|
share issue
costs
|
|
-
|
|
-
|
|
-
|
|
69,879,210
|
|
Proceeds from
exercise of options
|
|
-
|
|
8,583
|
|
75,192
|
|
915,124
|
Net cash received
from financing activities
|
|
-
|
|
8,583
|
|
75,192
|
|
70,629,970
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH
|
|
|
|
|
|
|
|
|
EQUIVALENTS
|
|
(11,132,822)
|
|
(1,188,338)
|
|
(33,542,832)
|
|
62,646,655
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS
|
|
|
|
|
|
|
|
|
Beginning of the
period
|
|
36,277,793
|
|
68,669,545
|
|
55,026,171
|
|
5,193,561
|
Exchange difference
on cash and cash
|
|
|
|
|
|
|
|
|
equivalents
|
|
335,712
|
|
(4,692,523)
|
|
3,997,344
|
|
(5,051,532)
|
End of the
period
|
$
|
25,480,683
|
$
|
62,788,684
|
$
|
25,480,683
|
$
|
62,788,684
|
|
|
|
|
|
|
|
|
|
Represented
by:
|
|
|
|
|
|
|
|
|
Cash
|
|
14,390,173
|
|
12,939,671
|
|
14,390,173
|
|
12,939,671
|
Cashable high
interest savings accounts
|
|
11,090,510
|
|
25,957,813
|
|
11,090,510
|
|
25,957,813
|
Cashable guaranteed
investment certificates
|
|
-
|
|
23,891,200
|
|
-
|
|
23,891,200
|
|
$
|
25,480,683
|
$
|
62,788,684
|
$
|
25,480,683
|
$
|
62,788,684
|
About Neovasc
Neovasc is a specialty medical device
company that develops, manufactures and markets products for the
rapidly growing cardiovascular marketplace. Its products in
development include the Tiara™, for the transcatheter treatment of
mitral valve disease and the Neovasc Reducer™ for the treatment of
refractory angina. The Company also sells a line of advanced
biological tissue products that are used as key components in
third-party medical products including transcatheter heart valves.
For more information, visit: www.neovasc.com.
This news release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and applicable Canadian securities laws relating to the
Company's plans and expectations concerning its business, financial
results, trends, litigation and other matters, including the
Company's plans, intentions and expectations relating to the
CardiAQ litigation and other litigation, its ability to continue as
a going concern, its expectations regarding the commercial launch
of Reducer, its intention to focus business away from its
traditional revenue streams towards development and
commercialization of its own products, its expectation that its
consulting services revenue will decline in the long term, its
expectations with respect to margins and selling expenses, the need
for additional financing and other matters. The words "expect",
"anticipate", "may", "will", "intend", "believe", "continue",
"focusing", "advancing", "trend", and similar words or expressions
are intended to identify forward-looking statements.
Forward-looking statements are based on estimates and assumptions
made by the Company in light of its experience and its perception
of historical trends, current conditions and expected future
developments, as well as other factors that the Company believes
are appropriate in the circumstances. Many factors and assumptions
could cause the Company's actual results, performance or
achievements to differ materially from those expressed or implied
by the forward-looking statements, including, without limitation,
the conduct or possible outcomes of any actual or threatened legal
proceedings, the Company's ability to stay the payment of the
awards in the CardiAQ litigation and its ability to successfully
appeal the validity of the awards as well as the ruling on
inventorship, which are inherently uncertain and which create
material uncertainty that casts substantial doubt on the Company's
ability to continue as a going concern; the potential impact on the
Company's business of an adverse decision in the appeal on the
question of inventorship even if the Company prevails on its appeal
of the award; potential changes in circumstances relating to the
Company's financing requirements, whether as a result of the
CardiAQ litigation, unforeseen circumstances or otherwise; the
Company's ability to raise additional funding; the potential
benefits of the Neovasc Reducer™ and Tiara™ as compared with other
products; successful enrollment of patients in studies and trials
for the Neovasc Reducer™ and Tiara™; results of the trials and
studies for the Neovasc Reducer™ and Tiara™ that meet the Company's
expectations; the Company's receipt of any required local and
institutional regulatory approvals and the timing and costs of
obtaining such approvals; European enrollment in our clinical
trials, studies and compassionate use cases and the success of
applications in Europe; the
Company's ability to protect its intellectual property; changes in
business strategy or development plans; existing governmental
regulations and changes in, or the failure to comply with,
governmental regulations and general economic and business
conditions, both nationally and in the regions in which the Company
operates. These risk factors and others relating to the Company are
discussed in greater detail in the "Risk Factors" section of the
Company's Annual Information Form, which is included in its Annual
Report on Form 40-F and Management's Discussion and Analysis of
Financial Condition and Results of Operations (copies of which
filings may be obtained at www.sedar.com or www.sec.gov).
These factors should be considered carefully, and readers
should not place undue reliance on the Company's forward-looking
statements. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Neovasc Inc.