HALIFAX,
March 31, 2014 /CNW/ - MedMira, Inc.
(MedMira) (TSXV: MIR), reported today on its financial results for
the three and six month periods ended January 31, 2014.
MedMira revenue increased in the second quarter
by 9.7% compared to the first quarter, primarily due to an increase
in the Company's services revenue derived from the two product
development and commercialization projects for the U.S.
military. As these projects approach the final phase with FDA
submissions forthcoming, related sales and marketing activities and
expenditures increased during the quarter to support pre-launch
activities as well as MedMira's newest U.S. sales and distribution
channel and ongoing international business development
initiatives.
The Company added a number of key resources
during the quarter to facilitate corporate growth strategy
initiatives. MedMira International AG became operational in
the second quarter and serves as a hub for all commercialization
activities including the pursuit of business development and sales
opportunities. During this quarter, the Company started the
implementation of a company-wide enterprise resource planning (ERP)
system from SAP. The system will transform the finance
function and add financial transparency in every aspect of the
Company's activities. The implementation is expected to conclude by
the end of the third quarter. MedMira is also advancing on the
implementation of manufacturing automation at its facility in
Halifax, Nova Scotia.
Second Quarter Financial Highlights
- The Company recorded revenue in the quarter from products and
services totalling $518,715, as
compared to revenue from products, services and royalties of
$533,592 for the same period last
year.
- MedMira's product revenue in the quarter was $103,649 as compared to revenue of $220,426 for the same period last year. Gross
profit margin on product sales for the quarter was 55.4% compared
to 33.4% in the same period last year. The decline in product sales
stems from a delay in government tenders from the Asia Pacific region during this
quarter. Official launch activities related to Reveal G3 and
the Miriad line of products in the US were completed near the end
of the quarter and the sales momentum was not yet realized.
- The Company recorded service revenue of $415,066 with a related gross margin of
$145,163 compared to service revenues
of $277,806 and related gross margin
of $86,202 in the same period last
year. Service revenue is expected to grow in the U.S. market as the
clinical trials and related services increase in preparation for
the FDA submissions.
- Total operating expenses for this quarter were $1,358,497, an increase of $621,588 over the same period last year. The
increase in operating expenses reflects the investment being made
across the organization to aggressively advance the Company's
corporate strategic growth plan. There was a rise in R&D
expenses ($129,681) related to
clinical trials. The increase in Sales & Marketing expenses for
the quarter ($215,569) included
expenses for a new marketing campaign in the U.S. to launch and
promote the Miriad product line and were in line with the expansion
activities in the U.S. to introduce new products and train
distributors. An increase in General & Administrative
expenses ($170,254) is attributed to
one-time fees covering the set-up of MedMira International AG, the
implementation of a new ERP system from SAP, and filing new patents
in key markets. An increase in Other Direct costs ($106,084) is attributed to production
improvements and additional contract labour.
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 Revealâ, 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.