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
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
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
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