Company Reports Record Revenues - Increasing Product Sales Trend Expected
to ContinueVANCOUVER, Nov. 13 /CNW/ - Response Biomedical Corporation (TSX: RBM,
OTCBB: RPBIF) reported that it recorded total revenues of $1,471,130 and a net
loss of $3,648,602 or ($0.03) per share for the three month period ended
September 30, 2008. Subsequent to the end of the third quarter, the Company
announced the close of a $5.1 million brokered and non-brokered private
placement.
Corporate Update
"As part of what we expect to be a continued trend, we have recorded our
highest quarterly total and product revenues to date, with a 58% increase in
product revenues over the same period last year," said S. Wayne Kay, Chief
Executive Officer. "We have begun to recognize revenues from 3M's launch of
our flu A+B test and we are also preparing to begin clinical trials for the
next clinical application, also to be sold and marketed by 3M. In addition, we
are preparing for the launch of our cardiovascular product line in the Unites
States, early next year by our partner for cardiovascular products, Roche
Diagnostics."
Continued Mr. Kay, "As expected, we will experience negative gross
margins as we cover increased overhead associated with the move to our
significantly larger production facility. We are transitioning the Company to
one that can meet our future projected needs. With anticipated needs of our
existing partners coupled with the demands of our other customers and the
prospects for new customers and products on the horizon, we are planning for
significant growth of our revenues. We believe our third quarter results are
consistent with the strategy that will generate the best long-term results for
our shareholders and our recent financing was an important building block
toward meeting future milestones."
For a further discussion of the Company's financial results for the three
and nine month periods ended September 30, 2008, please refer to the Company's
unaudited interim consolidated financial statements and related MD&A, which
can be found at www.responsebio.com, SEDAR (Canada) www.sedar.com or EDGAR
(U.S.) www.sec.gov/edgar/searchedgar/webusers.htm. Information at these sites
is typically available within 24 hours of the distribution of the news
release.
About Response Biomedical
Response Biomedical develops, manufactures and markets rapid on-site
diagnostic tests for use with its RAMP(R) Platform for clinical and
environmental applications. RAMP(R) represents a new paradigm in diagnostics
that provides high sensitivity and reliable information in minutes. It is
ideally suited to both point-of-care testing and laboratory use. The RAMP(R)
system consists of a Reader and single-use disposable test cartridges, and has
the potential to be adapted to more than 250 medical and non-medical tests
currently performed in laboratories. RAMP(R) clinical tests are commercially
available for the early detection of heart attack, congestive heart failure
and influenza.
In late 2006, the Company formed a strategic alliance with 3M to
commercialize rapid infectious disease tests worldwide and in 2008 entered
into a strategic alliance with Roche Diagnostics to commercialize rapid
cardiovascular tests worldwide.
In the non-clinical market, RAMP(R) Tests are currently provided for the
environmental detection of West Nile Virus, and Biodefense applications
including the rapid on-site detection of anthrax, smallpox, ricin and
botulinum toxin. Several other product applications are under development.
Response has achieved CE Marking for its Reader and clinical tests and its
Quality Management System is registered to ISO 13485: 2003 and ISO 9001: 2000.
The RAMP(R) Influenza A/B Assay and RAMP 200 reader are not yet licensed for
clinical use in Canada.
Response Biomedical is a publicly traded company, listed on the TSX under
the trading symbol "RBM" and quoted on the OTC Bulletin Board under the symbol
"RPBIF". For further information, please visit the Company's website at
www.responsebio.com.
Statements contained in this press release relating to future results,
events or developments, for example, statements containing the words
"believes," "may," "could," "plans," "will," "estimate," "continue,"
"anticipates," "intends," "expects", "goal" and similar expressions, are
"forward-looking statements" or "forward-looking information" under applicable
United States and Canadian securities laws. Forward-looking statements or
information may involve, but are not limited to, comments with respect to our
planned activities, business plan and strategies and their future
implementation, and our expectations for our financial condition and the
results of, or outlook for, our business operations generally. Forward-looking
statements or information are subject to the related assumptions made by us
and involve known and unknown risks, uncertainties and other factors that may
cause actual results, events or developments to be materially different from
those expressed or implied by such statements or information.
Many of such risks, uncertainties and other factors form part of our
underlying assumptions, and include, among other things, financial risks that
would affect our operations such as our available working capital and cash
flows and whether and for how long available funds will be sufficient to fund
our operations and our ability to raise additional capital as and when needed;
our need for substantial additional funding to conduct research and
development and commercialization activities; changing facility costs and
other risks relating to our facilities expansion plans; our ability to
establish, and our dependence upon, relationships with strategic alliance
partners to develop and commercialize products; technological changes that
impact our existing products or our ability to develop and commercialize our
products; our ability to obtain and enforce timely patent and other
intellectual property protection for our technology and products; our ability
to obtain and maintain rights to technology from licensors; liability for
patent, product liability and other claims asserted against us;
commercialization limitations imposed by patents owned or controlled by third
parties; technical risk in research and development; adverse results or
unexpected delays in product development and clinical trials; our ability to
retain, and our reliance upon, third party suppliers, manufacturers,
distributors and alliance partners; our ability to attract and retain
qualified personnel; our ability to effectively and efficiently manage the
planned growth of our operations; our ability to obtain, and the timing of,
necessary regulatory approvals; our ability to profitably sell our products at
prices that would be acceptable to third-party reimbursement programs;
competition including competition from others with significantly more
resources; market acceptance of our products and the size of our markets;
changes in business strategy or development plans; changes in, or the failure
to comply with, governmental regulations; fluctuations in interest rates and
foreign exchange rates; seasonality including government budget cycles;
general economic and business conditions where we operate; and other factors
referenced in our annual report, our Annual Information Form (AIF) (Form 40-F
in the U.S.) and other filings with Canadian and United States securities
regulatory authorities.
Given these uncertainties, assumptions and risks, readers are cautioned
not to place undue reliance on such forward-looking statements or information.
We disclaim any obligation to update, or to publicly announce any revisions
to, any such statements or information to reflect future results, events or
developments, except as required by law.
For further information: Response Biomedical Contacts: Bill Wickson,
Manager, Investor Relations, Response Biomedical Corporation, Tel (604)
456-6073, Email: bwickson@responsebio.com
