Implementation of Strategic Plan Sets Foundation for Sales
Growth, Automation, and Product Launches in 2014
HALIFAX,
Nov. 28, 2013 /CNW/ - MedMira, Inc.
(MedMira) (TSXV: MIR), a developer of rapid diagnostic technology
and solutions, reported today on its financial results for the
quarter and year ended July 31, 2013.
Over the course of fiscal year 2013, MedMira began executing on a
strategic plan and activities intended to drive positive growth and
revenue generation in 2014.
According to Hermes
Chan, Chief Executive Officer, MedMira, "We have implemented
many strategic changes during fiscal year 2013, and we are
confident that these changes have set the stage for MedMira's
substantial growth in 2014. Our sales and marketing team is
now well resourced both internally and externally with a focus on
key markets. We are also entering the implementation phase of
manufacturing automation, and all major project milestones are
being met on time and on budget. These efforts are buoyed by
a strong product pipeline, including the Multiplo and Miriad
product ranges, and steadily increasing awareness and endorsement
of our technology platform by customers, partners, and
collaborators around the world."
Despite some restructuring during this period,
the Company maintained financial stability, continued to support
ongoing sales and marketing activities, executed research and
development initiatives, achieved technology advancements, and
undertook major commercialization projects for key customers and
partners.
"Our strengthened business development and sales
and marketing programs, with key hires in the US and
internationally and our network of strategic partners, positions us
well to take our technology and products forward in to new markets
in 2014," Chan added.
Financial Highlights
- The Company recorded revenue in the year ended July 31, 2013 totalling $2,001,464, which included product sales, related
royalties, and service sales, as compared to $970,631 for the same period last year, which
included product sales and related royalties, an increase of
$1,030,833.
- MedMira's revenue from product sales and related royalties in
the year ended July 31, 2013 was
$864,798 as compared to $970,631 for the same period last year. Gross
profit on product sales for the year was $429,389 (50%) compared to $594,235 (61%) in the same period in 2012. The
decrease in product revenue by 10.9% was attributed to the
inventory adjustment in US after the Company transitioned its sales
channel from an agent to direct distributor sales with higher
margins. A delay in expected tender business in Latin America during the fourth quarter also
contributed to the overall decrease.
- The Company recorded revenue from service sales for the first
time in the year ended July 31, 2013
of $1,136,666 with a related gross
margin of $201,386. The Company
earned revenue and gross margin on a research contract with the US
Army.
- For the fourth quarter, MedMira recorded total revenue of
$595,000, compared to $272,000 for the same period in 2012.
- Total operating expenses decreased to $2,796,145 during the year compared to
$2,958,876 in 2012. The decrease in
operating expenses is attributed to a greater portion of costs
being allocated to cost of sales.
- During the year ended July 31,
2013, the Company completed its debt restructuring
initiative with an additional $715,689 in debt forgiveness and lower interest
charges on its loans.
- Subsequent to the close of fiscal year 2013, the Company
received $6.105 million in new equity
financing from its largest and controlling shareholder, OnSite Lab
Holding AG. This new investment is being used to support
sales and marketing activities in the US and international markets
where the Company has initiated product launch plans to begin in
2014.
About MedMira
MedMira is the leading developer and
manufacturer of flow-through rapid diagnostics and technologies.
MedMira is the only Canadian company to be awarded US Army
contracts for the development of rapid tests for HIV and Hepatitis
viruses. The Company's testing solutions provide hospitals, labs,
clinics and individuals with reliable, rapid diagnosis for diseases
such as HIV and hepatitis C in just three minutes. The Company's
tests are sold under the Reveal®, Multiplo™ and Miriad brands in
global markets. MedMira is located in Halifax, Nova Scotia, Canada.
www.medmira.com.
This news release contains forward-looking
statements, including statements relating to growth in the
Company's business, earnings and profitability, and trends in
demand for the Company's products, which involve risk and
uncertainties and reflect the Company's current expectation
regarding future events including statements regarding possible
future growth and new business opportunities. Actual events
could materially differ from those projected herein and depend on a
number of factors including, but not limited to, changing market
conditions, successful and timely completion of clinical studies,
uncertainties related to the regulatory approval process,
establishment of corporate alliances and other risks detailed from
time to time in the company quarterly filings.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE MEDMIRA INC.
