ImmunoPrecise Antibodies Reports 2017 Annual Results - Revenues up 39% Over Fiscal 2016
Aug 24, 2017, 08:15 ET
VICTORIA, Aug. 24, 2017 /CNW/ - IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") (TSX VENTURE: IPA)(OTC PINK: IPATF) yesterday reported its financial results for the fourth quarter ended April 30, 2017 and provides a business update. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
ImmunoPrecise's focus is on aggressively expanding its share of the research and development antibody global market, delivering its products and services to academic, diagnostic, biotechnology and pharmaceutical customers globally. As of April 30, 2017, the Company had $2,447,476 in working capital to finance its growth initiatives.
During the year ended April 30, 2017 the Company made foundational growth-enabling investments in operational efficiency, improvement to gross margins, new information systems, internet marketing capabilities and lead generation, expansion of laboratory facilities, market research and research and development initiatives aimed at new offerings in the development of humanized antibodies.
Going forward, the Company plans to continue aggressively pursuing strategic initiatives focused on the Company's four stated priority areas:
- Growing the core business
- Establishing a strong presence in the development of humanized antibodies
- Pursuing M&A activities and establishing growth-enabling strategic partnerships
- Developing a strong and valuable portfolio of intellectual property assets.
To achieve the best results from its investments the Company has added key scientific and management personnel to its team.
For the year ended April 30, 2017, the Company recorded revenue of $2,630,515 compared to $1,896,118 year ended April 30, 2016. The increased revenue was directly related to the Company being able significantly grow its commercial activities.
The Company recorded a net loss of $5,383,820 during the year ended April 30, 2017, compared to net income of $151,035 for the year ended April 30, 2016. The net loss is comprised of the $3,887,160 listing expenses recorded on completion of the Reverse Takeover-Over ("RTO"), which is a one-time accounting entry and is not reflective of its ongoing operations. The Company also incurred an operating loss of $1,386,474, which is mostly attributable to non-recurring costs in foundational growth-enabling investments made to pursue strategic initiatives which attracted consulting fees and other one-tie costs such as systems development, business development and operational efficiency aimed at configuring the Company for significant future growth.
These growth-enabling investments include:
- Increased staffing and higher laboratory operating costs to accommodate greater levels of activity. The Company also occupied additional space to facilitate expansion, added new equipment and incurred leasehold improvement costs to build a new laboratory that will effectively double the its revenue generating capacity;
- To support management and the Board of Directors in exercising oversight, the Company has invested and implemented state-of-the-art information systems for marketing and sales automation and customer relationship management (Salesforce), as well as accounting and financial reporting, resource planning and project management (Financial Force). Comprehensive operational and management reporting capabilities are being instituted with a view to effectively supporting a geographically dispersed organization.
For the year ended April 30, 2017, the Company has made noteworthy progress in its four priority areas identified by management and the Board of Directors. The initiatives include growing the core business, development of humanized antibodies, expansion through an M&A strategy, and investing in acquisition and development of intellectual property assets.
The Company has signed twelve long-term service agreements with new customers and is continuing its niche position in the production of rabbit monoclonal antibodies, a service producing both encouraging revenue and margin growth. The Company is establishing a market presence in the development of humanized antibodies. Antibody humanization is a high margin service that the Company anticipates will see rapidly increasing demand in the next fiscal year onwards.
The Company has completed its first acquisition with the closing of the purchase of U-Protein Express of Utrecht, Netherlands. U-Protein thereby gives IPA a foothold in Europe and is a strong strategic fit with ImmunoPrecise in terms of the intellectual property assets that will result from the combination. In addition, the combination will broaden the joint entity's portfolio of services and geographic reach. U-Protein services will be offered to IPA clients in North America, and IPA services will be offered to U-Protein clients in Europe.
The Company is continuing to strategically invest in developing a strong and valuable portfolio of intellectual property assets for the purpose of securing its profitably in future years. Evaluation and research initiatives are underway in areas such as humanization, immuno-oncology, and development of immune-contraceptive vaccines that will build on its proprietary technology and patent portfolio.
About ImmunoPrecise Antibodies Ltd.
The Company provides custom antibody engineering and production services and protein expression to support research and development programs at leading pharmaceutical and biotechnology companies, as well as academic research laboratories.
Antibodies are naturally occurring proteins capable of binding to specific target molecules, or antigens. They have been used very widely in research assays, diagnostics, purification, biologics and therapeutics.
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.
The services offered to customers include the development of mouse and rat monoclonal and rabbit recombinant monoclonal antibodies against a wide spectrum of antigens, as well as polyclonal antibodies, immunologically based assays, and 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 environmental, diagnostic and research applications.
The Company employs a highly experienced group of R&D scientists. Over the last 25 years, investments in innovative and proprietary technologies and methods have vastly improved the speed and efficiency of monoclonal and polyclonal antibody production.
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. IPA 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 IPA 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 IPA's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause IPA'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: risks and uncertainties described in the Company's Filing Statement dated December 13, 2016 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: ImmunoPrecise Antibodies Ltd., Phone: 1-250-483-0803, 3204-4464 Markham Street., Victoria, BC V8Z 7X8, www.immunoprecise.com; For investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: [email protected], Contact Financial Corp., 810 - 609 West Georgia St., Vancouver, BC V7Y 1G5