VICTORIA, March 28, 2018 /CNW/ - IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") (TSX Venture: IPA, OTC PINK: IPATF) today reports its financial results for the third quarter ended January 31, 2018. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
During the three months ended January 31, 2018 the Company achieved record quarterly revenue of $1,723,308 compared to $510,835 in 2017. This represents a 237% increase in revenue and stems from the acquisition of U-Protein Express B.V. ("U-Protein") and the Company's ability to grow its capacity in its core business and expand its market share to Europe. Additionally, the Company's gross margin percentage has increased to 54% from 24% in 2017 as a result of integration and efficiency investments and shifting our services towards toward higher margin offerings such as RMAT (Recombinant Monoclonal Antibody Technology) and humanized antibody production.
The Company recorded a net loss of $1,211,591 during the three months ended January 31, 2018, compared to $4,437,261 in 2017. The net loss in 2017 was mostly due to a listing expense of $3,847,160 related to the completion of the reverse takeover transaction. This was a one-time, non-cash expense. The Company's net loss in 2018 is mostly attributed to one-time costs for items such as systems development, business development and operational efficiencies. Additionally, the Company incurred non-recurring M&A costs in connection with its acquisitions and investments.
"The Company has had significant increases in organic growth with a healthy pipeline of recurring and new, therapeutic antibody clients, and we also anticipate that, similar to UPE, near-term acquisition activity will be immediately accretive, with a positive impact on the group of companies' revenues and earnings," commented Jennifer Bath, CEO of the Company. "We predict the positive revenue trajectory will continue."
The Company's continued focus is to aggressively expand its share of the antibody therapeutics market by becoming a leading, integrated antibody solutions company addressing all aspects of the therapeutic antibody discovery value chain through the application of conventional, novel, and advanced technologies. We have begun strategic investments and acquisitions to obtain the most comprehensive offering and to corner the market in the most promising of these technologies.
The U-Protein acquisition added a state-of-the-art laboratory, licenses, intellectual property, and strong customer relationships in Europe. U-Protein continues to grow its revenues and serves as an accretive investment.
On March 16, 2018, the Company announced that it has entered into the definitive share purchase agreement to acquire all of the issued and outstanding shares of ModiQuest Research B.V. ("Modiquest") (see news release dated March 16, 2018). The Company anticipates that the transaction will be closed within a few days.
The Company continues to realize on the Board's commitment to grow globally through strategic acquisition. To date, the Company announced entering into Letters of Intent to acquire or strategically invest in Crossbeta Biosciences B.V., Preclinics GmbH, and Single Cell Technology Inc. which are still currently in discussion and due diligence.
About ImmunoPrecise Antibodies Ltd.
Immunoprecise is a full-service, therapeutic antibody discovery company focused on the next generation of antibody discovery, to deliver the most therapeutically-relevant antibodies, in a shorter period of time, with the highest probability of succeeding to clinical trials.
The Company operates from state of the art laboratory facilities located at the Vancouver Island Technology Park in Victoria, British Columbia which house its tissue culture and molecular facilities as well as an animal care unit, and is a member of the Canadian Council for Animal Care and in association with U-Protein Express B.V. its subsidiary laboratory operation in Life Science Incubator, Utrecht Science Park, Utrecht, the Netherlands.
The services offered to customers include the development of wild-type and humanized mouse and rat monoclonal antibodies and recombinant rabbit monoclonal antibodies against a wide spectrum of antigens, as well as polyclonal antibodies, immunologically-based assays, recombinant protein manufacturing, and advanced solutions to challenges faced by clients in antibody-related research and development. In addition, cryopreservation services are provided for the storage of valuable biological materials including hybridoma clones, plasmid constructs, and cell lines. The antibodies produced by the Company target a wide variety of therapeutic, diagnostic and research applications.
Forward Looking Information
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. The Company uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments. However, whether actual results and developments will conform to the Company's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors include, among other things, the Company closing its acquisitions, and such risks and uncertainties described in the Company's management discussion and analysis for the period ended January 31, 2018 which can be accessed at www.sedar.com. The "forward-looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
Neither the 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 ImmunoPrecise Antibodies Ltd.
For further information: please contact: ImmunoPrecise Antibodies Ltd., Jennifer Bath, CEO, Phone: 1-250-483-0803, 3204-4464 Markham Street, Victoria, BC V8Z 7X8, www.immunoprecise.com; For investor relations please contact: Frederick Chabot, Phone: 1-438-863-7071, Email: [email protected], Contact Financial Corp., 1450 - 701 West Georgia St., Vancouver, BC V7Y 1G5