HALIFAX,
June 27, 2014 /CNW/ - MedMira Inc.
(MedMira) (TSXV: MIR), reported today on its financial results for
the three and nine month periods ended April
30, 2014.
Revenues increased in the third quarter by 23%
compared to the second quarter. The primary driver of this
revenue growth was an increase in product revenue of 144% generated
through sales made in Latin
America. Service revenue in the same period decreased
by 7% in line with Management's expectations.
In the third quarter, MedMira made substantial
advancements in sales, marketing, and business development
initiatives in international markets. Significant progress
was seen throughout Latin America,
most notably in Mexico where
MedMira received approval to market and sell its Reveal HIV rapid
test, the first all-inclusive point-of-care rapid HIV test to be
approved and available in Mexico. Additionally, the Company
received approval for the newest version of its rapid HIV test in
the European Union.
Marketing initiatives and brand building
activities were focused on the North
America and Chinese markets during the third quarter.
Ahead of upcoming product launches for Multiplo HBc/HIV/HCV, Reveal
HBsAg, and Reveal G4, MedMira continued to generate awareness of
its technology and product lines in the U.S. market through
advertising, media relations, and sales events. In
China, the Company successfully
launched its Miriad RVF Toolkit at the 2014 China Medical Equipment
Fair.
During this quarter, the Company continued the
implementation of a company-wide enterprise resource planning (ERP)
system from SAP. MedMira is also proceeding with the
implementation of manufacturing automation at its facility in
Halifax, Nova Scotia.
Subsequent to the end of the quarter, the
Company obtained a short-term loan of $484,026 (CHF
400,000) from its controlling shareholder Onsite Lab Holding
AG. The loan bears an interest rate of 5% per annum and is
repayable six months from the date of the loan.
Third Quarter Financial Highlights
- The Company recorded revenue in the quarter from products and
services totalling $638,639, as
compared to revenue from products, services and royalties of
$327,257, an increase of 95% for the
same period last year.
- MedMira's product revenue in the quarter was $251,375 as compared to revenue of $163,036 for the same period last year, an
increase of 54%. Gross profit margin on product sales for the
quarter was 36% compared to 35% in the same period last year.
Product revenue increased due to additional sales in Latin America triggered by recently received
product approvals in Venezuela and
Mexico.
- The Company recorded service revenue of $387,264 with a related gross margin of
$120,728 compared to service revenues
of $164,221 and related gross margin
of -$191 in the same period last
year. Service revenue increased by 135% in line with the increasing
activities scheduled for the FDA product approvals for the
Company's Multiplo product line.
- Total operating expenses for this quarter were $1,212,939, an increase of $489,959 over the same period last year. The year
over year cost increase is an immediate reflection of the
commercialisation efforts made to support and prepare the launch of
the new product lines and of strengthening the internal processes
to support such efforts.
About MedMira
MedMira is a leading developer and manufacturer
of vertical flow rapid diagnostics. The Company's tests provide
hospitals, labs, clinics and individuals with instant diagnosis for
diseases such as HIV and hepatitis C in just three easy steps. The
Company's tests are sold under the Reveal®, Multiplo™
and Miriad™ brands in global markets. Based on its patented Rapid
Vertical Flow Technology™, MedMira's rapid HIV test is the only one
in the world to achieve regulatory approvals in Canada, the United
States, China and the
European Union. MedMira's corporate offices and manufacturing
facilities are located in Halifax, Nova
Scotia, Canada. For more information visit medmira.com.
This news release contains forward-looking
statements, which involve risk and uncertainties and reflect the
Company's current expectation regarding future events including
statements regarding possible approval and launch of new products,
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.
