LAVAL, QC, March 24, 2020 /PRNewswire/ - Crescita
Therapeutics Inc. (TSX: CTX) (OTC US:
CRRTF) ("Crescita" or the "Company"), a growth-oriented,
innovation-driven Canadian commercial dermatology company with
in-house research & development ("R&D") and manufacturing
capabilities, today announced measures it is taking in
response to the novel coronavirus pandemic ("COVID-19").
In accordance with the government-mandated shut-down of all
non-essential businesses announced by Québec Premier François
Legault yesterday, the Company will be temporarily closing its
office and production facility in Laval, Québec, effective today at midnight
until at least April 13, 2020. The
facility closure will regretfully result in temporary layoffs
affecting most production and office personnel. Certain employees
deemed critical to maintaining basic services during the shut-down,
including customer service, will be working remotely with reduced
hours. Product distribution through the Company's third-party
logistics provider will remain operational with reduced
capacity.
Business Impact to Date
Most of the Company's Canadian clients in the aesthetic and
medical aesthetic markets have temporarily closed resulting in
substantially decreased Canadian product sales. The Company's
international business with various affected countries such as
Malaysia, South Korea and China has also decreased. The Company
anticipates that royalties from international sales of its products
will be adversely affected by lower demand and may also be affected
by border restrictions.
The Company is in the process of implementing various
initiatives in order to conserve cash and help maintain its
financial flexibility through the uncertainties and economic
pressures posed by the pandemic. The members of the executive
team, including the CEO and CFO, as well as members of the
Company's Board of Directors have agreed to temporary base salary
or fee reductions ranging between 25% and 40%. In addition,
effective March 24, 2020, the Company
terminated its Automatic Share Purchase Plan ("ASPP") which was
launched on June 28, 2019 in
connection with the Company's current normal course issuer bid
("NCIB"). The current NCIB remains in effect on the same terms and
conditions as previously disclosed. As of December 31, 2019, the Company had cash and cash
equivalents of $9.3 million.
The Company is closely monitoring developments and will continue
to provide updates as the COVID-19 situation evolves.
About Crescita
Therapeutics Inc.
Crescita (TSX: CTX and OTC US: CRRTF) is a
growth-oriented, innovation-driven Canadian commercial dermatology
company with in-house R&D and manufacturing capabilities. The
Company offers a portfolio of non-prescription skincare products
and early to commercial stage prescription drug products and owns
multiple proprietary drug delivery platforms that support the
development of patented formulations that can facilitate the
delivery of active ingredients into or through the skin.
Supported by a sales force covering all of Canada and executing its Business to Business
to Consumer marketing approach, Crescita sells its non-prescription
skincare products domestically through spas, medispas, and medical
clinics, as well as internationally, through distributors and an
e-commerce platform.
Crescita's predecessor company, Nuvo Research, developed a
prescription product called Pliaglis®, that utilizes the Company's
proprietary phase-changing topical cream Peel technology, a
part of the DuraPeel™ family, which are self-occluding,
film-forming cream/gel formulations, that provide extended release
delivery of the active ingredients to the site of application.
Pliaglis is a topical local anaesthetic cream that provides safe
and effective local dermal analgesia on intact skin prior to
superficial dermatological procedures. The product is currently
approved in over 25 different countries and sold by commercial
partners in the U.S., Italy and
Brazil, and sold in Canada by the Company.
Crescita's expertise in product formulation and development can
be leveraged in combination with its patented transdermal delivery
technologies to develop and manufacture creams, liquids, gels
ointments and serums under its contract development and
manufacturing organization ("CDMO") infrastructure. The Company
operates out of a 50,000-square-foot facility located in
Laval, Québec, which produces a
significant part of its non-prescription skincare products, such as
LDR, Pro-Derm and Alyria. Formulations manufactured by or for
Crescita include cosmetics, natural health products ("NHP") and
products with Drug Identification Numbers ("DIN"). For additional
information, please visit www.crescitatherapeutics.com.
Forward-Looking Statements
This press release
contains "forward-looking information" as defined under Canadian
securities laws (collectively, "forward-looking statements"). The
words "plans", "expects", "does not expect", "goals", "seek",
"strategy", "future", "estimates", "intends", "anticipates", "does
not anticipate", "projected", "believes" or variations of such
words and phrases or statements to the effect that certain actions,
events or results "may", "will", "could", "would", "should",
"might", "likely", "occur", "be achieved" or "continue" and similar
expressions identify forward-looking statements. In addition, any
statements that refer to expectations, intentions, projections or
other characterizations of future events or circumstances contain
forward-looking statements.
Forward-looking statements are not historical facts but instead
represent management's expectations, estimates, projections and
assumptions regarding future events or circumstances. Such
forward-looking statements are qualified in their entirety by the
inherent risks, uncertainties and changes in circumstances
surrounding future expectations which are difficult to predict and
many of which are beyond the control of the Company.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable by
management of the Company as of the date of this press release, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Material factors and
assumptions used to develop the forward-looking statements, and
material risk factors that could cause actual results to differ
materially from the forward-looking statements, include but are not
limited to changes in the business or affairs of Crescita; the
ability of Crescita's licensees to successfully market its
products; competitive factors in the industries in which Crescita
operates; relationships with customers, suppliers and licensees;
changes in legal and regulatory requirements; foreign exchange and
interest rates; prevailing economic conditions; and other factors,
many of which are beyond the control of Crescita.
Additional factors that could cause Crescita's actual results
and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, the risk
factors included in Crescita's most recent Annual Information Form
under the heading "Risks Factors", and as described from time to
time in the reports and disclosure documents filed by Crescita with
Canadian securities regulatory authorities and commissions. These
and other factors should be considered carefully, and readers
should not place undue reliance on Crescita's forward-looking
statements when making decisions, as forward-looking statements
involve significant risks and uncertainties. Forward-looking
statements should not be read as guarantees of future performance
or results and will not necessarily be accurate indications of
whether or not the times at or by which such performance or results
will be achieved.
All forward-looking statements are based only on information
currently available to the Company and are made as of the date of
this press release. Except as expressly required by applicable
Canadian securities law, the Company assumes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise. All
forward-looking statements in this press release are qualified by
these cautionary statements.
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SOURCE Crescita Therapeutics Inc.
