IMI provides operational update and previews fiscal 2004 results
March 08 2005 - 3:30PM
PR Newswire (US)
IMI provides operational update and previews fiscal 2004 results -
Significantly advanced commercialization of PREVU(x) Skin Sterol
Test - Expanded scientific validation of products - Poised to
generate revenue TORONTO, March 8 /PRNewswire-FirstCall/ --
Predictive medicine company IMI International Medical Innovations
Inc. (TSX: IMI; Amex: IME) today provided investors with a year-end
operating update and previewed financial results for the fourth
quarter and fiscal year ended December 31, 2004. "Fiscal 2004 was
an eventful year, with the completion of a significant worldwide
marketing agreement with McNeil Consumer Healthcare, Canada, for
our cardiovascular products, continuing advances in our clinical
program and new publications and presentations," said Dr. Brent
Norton, President and Chief Executive Officer. "These
accomplishments speak strongly to the scientific credibility and
growth opportunities for our products." Dr. Norton continued,
"Looking ahead, fiscal 2005 will be a pivotal year for IMI. We are
poised to generate revenue from PREVU(x) Point of Care Skin Sterol
Test, which is currently being commercialized in Canada, the U.S.
and select markets in Europe, where it is available as a
point-of-care test. We are also aiming to advance two additional
formats of our skin sterol technology. Another key focus will be on
accelerating development of our cancer products with new clinical
studies. Additionally, to date this year three papers about our
skin sterol technology have already been accepted for future
publication in leading medical journals, including the American
Heart Journal. Earlier this week, exciting new data on PREVU(x)
presented at the American College of Cardiology annual conference
attracted positive international media coverage, and we expect to
present at similar forums later this year. These are all important
accomplishments that will add significant value to our business."
Operational Review ------------------ Advancing commercialization
of PREVU(x) Skin Sterol Test During 2004, IMI worked with McNeil to
brand the company's skin sterol technology as PREVU(x) Skin Sterol
Test, a complex process that ranged from software enhancements to
extended dating on the test kits. IMI shipped product to McNeil in
the second and fourth quarters of 2004 and received license revenue
in the second, third and fourth quarters for total annual revenue
of approximately $485,000. McNeil is establishing a high profile in
the professional market with the active promotion of PREVU(x) POC
to the medical community through a number of marketing vehicles.
McNeil has demonstrated the test to cardiovascular specialists at
major medical conferences in Canada, the U.S., and, most recently,
the United Kingdom. These include the Canadian Cardiovascular
Congress, the American Heart Association annual conference, and the
American College of Cardiology annual meeting earlier this week,
among others. Presentation of new clinical data for cardiovascular
and cancer products During the year IMI continued to strengthen the
credibility of its products and raise the company's profile with
the international medical community: - In May, new data on
LungAlert(TM) was presented at the 100th Annual American Thoracic
Society (ATS) international annual conference in Orlando, Florida,
confirming that LungAlert's reactivity in sputum samples may be
useful as an initial screening test to identify high-risk subjects
who would benefit from other tests, such as spiral computed
tomography. - In July, clinical trial results for the company's
breast cancer test were published in the prestigious American
Cancer Society journal Cancer. The data showed that IMI's test
demonstrated a statistically significant difference between
early-stage breast cancer and non- cancerous samples, which
demonstrates the test's effectiveness in identifying early-stage
disease. - PREVU(x) Point of Care Skin Sterol Test was the subject
of a presentation at the Canadian Cardiovascular Congress in
October. These findings confirmed that skin sterol provides new
information about heart disease risk in patients on statin drug
therapy independent of traditional risk factors. This trial also
provided important new data about skin sterol levels, which were
higher in patients with a history of stroke, angina and diabetes.
Conversely, blood markers did not positively correlate with prior
stroke, angina or diabetes. Initiated important new clinical study
In December, IMI started a new multi-center skin sterol study, led
by the prestigious Montreal Heart Institute. The study will
determine whether skin sterol values measured by PREVU(x) Point of
Care Skin Sterol Test are substantially equivalent to skin sterol
values as measured by IMI's new lab-processed format of the test,
PREVU(x) Skin Sterol Test LT. Successful completion of this trial
will pave the way for additional product approvals in key markets
as well as milestone payments. Increased market presence IMI
continued to broaden its relationships with the professional
investment community in Canada as well as the United States, where
the company engaged The Investor Relations Group (IRG). IMI is also
working to increase public awareness of its unique products, with
recent coverage in The Wall Street Journal, Chicago Tribune,
National Post, Calgary Herald and Toronto Star, among others, and
in numerous trade publications. Enhanced breadth and depth of Board
of Directors In June, Ron Henriksen was appointed to IMI's Board of
Directors, bringing a wealth of international knowledge and
international perspective. Mr. Henriksen has more than 30 years of
experience in the healthcare field, working in the pharmaceutical,
biotechnology, consulting and venture capital industries. Financial
Highlights (unaudited) -------------------- IMI recorded revenue of
approximately $485,000, consisting of product sales to McNeil as
well as license revenue. IMI's cash burn for the fourth quarter was
within management's expectations. Expenses increased about 25
percent from fiscal 2003, reflecting higher research and
development costs related to clinical trials, product development
and increased general and administrative expenses. As at December
31, 2004, the company had cash, cash equivalents and short-term
investments totaling approximately CDN$5.2 million. Management
believes that, based on historic cash expenditures and the current
expectation of further revenues from partnering activities and
product sales, IMI's existing cash resources together with
investment tax credits receivable will be sufficient to meet
current operating and capital requirements through at least 2005.
IMI will file complete audited financial results on March 31, 2005.
Subsequent to Year End ---------------------- In January, new skin
sterol data from a study conducted independently at the University
of Vienna was published in the January edition of the Journal of
Clinical Chemistry. This initial data showed that skin sterol might
be a useful monitoring tool for patients taking statins. Also in
January, IMI initiated a new clinical trial at the University of
British Columbia to evaluate the relationship between skin sterol
values and a variety of new and established coronary artery disease
(CAD) markers, including ankle/brachial blood pressure index (ABI)
and vascular compliance, in high-risk patients. In late February,
IMI announced that amendments approved by the U.S. Food and Drug
Administration (FDA) to accelerate AtheroGenics, Inc.'s ARISE
(Aggressive Reduction of Inflammation Stops Events) clinical trial
will increase patient enrollment and provide IMI with valuable new
data on skin sterol and its relationship to primary events such as
heart attacks and stroke sooner than expected. The ARISE study is
expected to be completed in the first quarter of 2006. In early
March, IMI filed a new patent application with the United States
Patent and Trademark Office (PTO) related to a new format of
PREVU(x) Skin Sterol Test. This patent, titled Method and Apparatus
for Non-Invasive Measurement of Skin Tissue Cholesterol, further
establishes IMI's leadership in non-invasive cardiovascular disease
risk assessment and broadens the company's intellectual property
position around PREVU(x) Skin Sterol Test in major world markets.
Earlier this week, new data was presented at the 54th Annual
Scientific Session of the American College of Cardiology, in
Orlando, Florida, showing a strong correlation between skin sterol
and increased carotid intima-media thickness (CIMT), a
well-established marker of atherosclerosis, in patients with no
symptoms of vascular disease. CIMT is an independent predictor of
myocardial infarction and stroke. The findings of the study, titled
Skin Cholesterol Content Identifies Subclinical Atherosclerosis in
Asymptomatic Adults, by Wendy S. Tzou, Maureen E. Mays, Claudia E.
Korcarz, Susan E. Aeschlimann and James H. Stein, will be published
in the American Heart Journal later this year. Outlook -------
"While we cannot provide any guidance on the volume or timing of
sales of PREVU(x), we are encouraged by the response of the medical
community to date," continued Dr. Norton. "We do expect to record
revenue in 2005, but how and when that happens will be determined
by McNeil. Our focus is on driving our clinical program to support
additional new regulatory claims for PREVU(x) and to advance the
lab-processed and home-use formats of the test to strengthen the
overall value and potential of our skin sterol technology." "We
also intend to move forward aggressively with our cancer portfolio
in 2005, with new as well as expanded studies," added Dr. Norton.
"We are entering a growth phase that we believe will generate
significant long-term value for our shareholders."
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Conference Call and Webcast IMI will hold a conference call and
webcast tomorrow, March 9, 2005, at 10 a.m. ET. To access the
conference call, please dial (416) 640-4127 in Toronto, or 1 (800)
814-4862 elsewhere in North America. A live audio webcast will be
available at http://www.imimedical.com/, and will be subsequently
archived for three months. To access the replay via telephone,
which will be available until March 16, 2005, please dial (416)
640-1917 or (877) 289-8525 and enter the passcode 21116488 followed
by the number sign.
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About IMI IMI is a world leader in predictive medicine, dedicated
to developing rapid, non-invasive tests for the early detection of
life-threatening diseases. IMI's cardiovascular products, which are
branded as PREVU(x) Skin Sterol Test, are being marketed and
distributed worldwide by McNeil Consumer Healthcare, Canada. The
company's cancer tests include ColorectAlert(TM), LungAlert(TM) and
a breast cancer test. IMI's head office is located in Toronto, and
its research and product development facility is at McMaster
University in Hamilton, Ontario. For further information, please
visit http://www.imimedical.com/. This press release contains
forward-looking statements. These statements involve known and
unknown risks and uncertainties, which could cause the Company's
actual results to differ materially from those in the forward-
looking statements. Such risks and uncertainties include, among
others, the lack of operating profit and availability of funds and
resources to pursue R&D projects, the successful and timely
completion of clinical studies, the successful development or
marketing of the Company's products, reliance on third-party
manufacturers, the competitiveness of the Company's products if
successfully commercialized, the ability of the Company to take
advantage of business opportunities, uncertainties related to the
regulatory process, and general changes in economic conditions. In
addition, while the Company routinely obtains patents for its
products and technology, the protection offered by the Company's
patents and patent applications may be challenged, invalidated or
circumvented by our competitors and there can be no guarantee of
our ability to obtain or maintain patent protection for our
products or product candidates. Investors should consult the
Company's quarterly and annual filings with the Canadian and U.S.
securities commissions for additional information on risks and
uncertainties relating to the forward-looking statements. Investors
are cautioned not to rely on these forward-looking statements. IMI
is providing this information as of the date of this press release
and does not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise. DATASOURCE: IMI
International Medical Innovations Inc. CONTACT: Company Contact,
Sarah Borg-Olivier, Director, Communications, T: (416) 222-3449, ;
U.S. Investor Contact, Andrea Faville, The Investor Relations
Group, T: (212) 825-3210,
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