MedMira Reports Third Quarter Results
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.
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.For further information:
Andrea Young, Corporate Communications