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MONTREAL, April 30, 2012 /CNW/ - Aptilon Corporation ("Aptilon or the "Company") (TSX-V: APZ), a leader in online access, engagement and interaction with physicians and healthcare professionals on behalf of pharmaceutical and life sciences companies, today announced a series of measures to respond to project modifications, ongoing delays, and internal restructuring by its clients. Chairman and CEO Roger Korman, Ph.D. stated, "As highlighted last year, leading US pharmaceutical manufacturers have announced major reductions in their sales and marketing personnel and functions. While such reductions will lead to new opportunities as functions are outsourced, presently the Company must respond to reductions in project scope by its clients and revenue levels that are expected to be lower than anticipated." In response to this challenging situation, the Company has taken the following measures:
- Reached agreement with lenders to renegotiate the payment schedule of the debt held by the DMD operating unit ("DMD Division" or "Data services segment"). The new debt plan will maintain debt payments at the level of 2011 for the remainder of the year at a level that the current cash-flow for the year is expected to sustain.
- Reduced the general operating and personnel expenses across the Company. Certain staff reduction measures have been implemented on a temporary basis so that they can be adjusted as the level of revenue and cash-flow increase.
- Reached agreement with lenders regarding the payment schedule of the long-term debt with the Canadian lenders of the Aptilon operating unit. The new debt plan extends the repayment periods and reduces the short-term portion of the loans.
- The Board of Directors, after discussion to reduce the size and cost of the Board, has accepted the resignation of Messrs. Tommy Boman and Robert Steinfeld.
- As previously stated, "The Company is dependent upon, amongst other things, attaining a satisfactory revenue level, the support of its customers, a return to profitable operations and the generation of cash from operations. These matters are dependent of a number of factors outside of the Company's control and there is uncertainty about the Company's ability to continue as a going concern.
The Company also notes advances in the following areas:
- Aptilon has successfully implemented in-field remote live selling via 3G/4G/LTE tablets and enabled one-click access to live meetings with key physician leaders (KOLs) online as part of its KOL Connect Solution.
- Aptilon's solution continues to attract attention by leading sales and marketing service companies who serve the pharmaceutical industry. In order to create new partnerships while allowing Company management to focus on operations, Aptilon has retained Excel Partners to represent the Company in future partnerships.
- The DMD division has compiled the largest physician email database authenticated to the database of the American Medical Association (AMA). At more than 1.5 million email addresses appended to 700,000 US physicians, the DMD database is 50% larger than its next largest competitor.
- DMD has raised its market share, according to the American Medical Association, to 65% of medical publishers who use the AMA database.
- DMD has signed a one-year exclusive contract to provide email services to Daiichi Sankyo Inc.
About Aptilon Corporation
Aptilon enables pharmaceutical, biotech and medical device companies to effectively reach, message, connect and interact with US physicians and healthcare professionals via multiple access channels. Its innovative service offerings provide targeted impressions and interactions through: video and mobile detailing, ReachNetSM Physician Access Channel, the DMD database and permission-based email services. Top US pharmaceutical companies and respected healthcare organizations have adopted Aptilon's solutions to market to, engage and interact with leading healthcare practitioners. For more information, visit www.aptilon.com.
ReachNetSM is a service mark of Aptilon Corporation, other trademarks are the property of their respective owners.
This news release may contain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Aptilon. A number of factors could cause actual events, performance or results to differ materially from the events performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Aptilon does not assume any obligation to update or revise them to reflect new events or circumstances.
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.
For further information:
Mr. Denis Martineau