MISSISSAUGA, ON, Jan. 27, 2012 /CNW/ - Mr. Brian Pedlar, President and
CEO of Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV:
COV), an advanced medical technologies company, is pleased to provide
the following update.
"This past fiscal year has seen Covalon undergo significant changes and
the Company continues to make substantial progress in meeting its
Covalon's new sales and marketing team has moved quickly to aggressively
expand its advanced wound care business with additional distribution
partners. During fiscal 2011, we announced that Covalon recovered the
exclusive worldwide rights to its advanced wound care products from a
major medical company that was only selling them in one limited market
Following this announcement, we announced the signing of two
international distribution agreements with combined committed revenues
of $23.2 million over the terms of the agreements for our advanced
wound care product ColActive® Plus Ag.
We are also aggressively marketing Covalon's medical coating
technologies into new specialties and markets. During the fourth
quarter of fiscal 2011, we announced a $7.7 million distribution
agreement with a China-based medical device distributor to market
Covalon's antimicrobial catheters throughout China and Hong Kong.
We fully expect to announce additional deals in the near future, both
within North America and Internationally. Covalon has attended or
presented at ten major medical conferences and trade shows during the
past year and has engaged over sixty new companies in confidential
discussions to evaluate Covalon's products and technologies.
Our medical product development pipeline was strengthened during fiscal
2011, as we re-focused our development efforts on market driven
products. We currently have five products in the process of regulatory
clearance and have obtained Health Canada clearance on two significant
new products - IV Clear® and SurgiClear®. New research has commenced on an exciting new generation of biosensors
and telehealth technologies with wireless capabilities.
Finally, Covalon is continuing to evaluate acquisition opportunities
that have the potential to significantly add capabilities and new
The Company announced financial results for its year ended September 30,
2011. Revenue for the year was $2,588,025. Revenue was down year over
year as a result of the changeover from the old exclusive wound care
distribution arrangement to the new path we have chosen which is
resulting in new agreements.
Annual operating expenses were $4,923,735. During the year, the Company
had five new market-focused products move into the final phases of
development and regulatory filing. Substantial resources were required
for outside testing to provide data for FDA and other regulatory
filings. As a result, research and development expenses increased by
$357,789 during the year.
Sales and marketing expenses were $1,065,921 compared to $376,726 in the
prior year. Over the past year management made substantial improvements
in the sales and marketing functions of the business in an effort to
increase the Company's customer base. During fiscal 2011, Covalon
attended or exhibited at ten industry trade shows. During fiscal 2010,
the Company did not exhibit at any tradeshows. More resources were
invested on sales and marketing by expanding the sales and business
development staff from one person to six people.
Net loss was $3,561,941 or $0.05 per share. Covalon continues to have a
strong balance sheet with no debt and over $5,000,000 in cash, cash
equivalents and short-term investments as of September 30, 2011.
Covalon is progressing well on its plan to transform into a market
driven healthcare company. I am confident the changes made in fiscal
2011 will positively impact fiscal 2012 and beyond," stated Brian
Pedlar, Covalon's President and CEO.
Covalon Technologies Ltd. researches, develops and commercializes new
healthcare technologies that help save lives around the world.
Covalon's patented technologies, products and services address the
advanced healthcare needs of medical device companies, healthcare
providers and individual consumers. Covalon's technologies are used to
prevent, detect and manage medical conditions in specialty areas such
as wound care, tissue repair, infection control, disease management,
medical device coatings and biocompatibility. To learn more about
Covalon, visit our website at www.covalon.com
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.
This news release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The
forward-looking statements are often, but not always, identified by the
use of words such as "seek", "anticipate", "plan, "estimate", "expect",
"intend" and statements that an event or result "may", "will",
"should", "could" or "might" occur or be achieved and other similar
expressions. These forward-looking statements involve risk and
uncertainties, including the difficulty in predicting product
approvals, acceptance of and demands for new products, the impact of
the products and pricing strategies of competitors, delays in
developing and launching new products, the regulatory environment,
fluctuations in operating results and other risks, any of which could
cause results, performance, or achievements to differ materially from
the results discussed or implied in the forward-looking statements.
Many risks are inherent in the industry; others are more specific to
the Company. Investors should consult the Company's ongoing quarterly
filings for additional information on risks and uncertainties relating
to these forward-looking statements. Investors should not place undue
reliance on any forward-looking statements. The Company assumes no
obligation to update or alter any forward-looking statements whether as
a result of new information, further events or otherwise.
SOURCE Covalon Technologies Ltd.
For further information:
CEO, Covalon Technologies Ltd.
T: (905) 568-8400 x 233
F: (905) 568-5200