ImmunoPrecise Antibodies reports Q3 2017 financial results - revenues up 70% for the first nine months of fiscal 2017
Mar 30, 2017, 16:08 ET
VICTORIA, March 30, 2017 /CNW/ - IMMUNOPRECISE ANTIBODIES (the "Company") (TSX VENTURE: IPA)(OTC PINK: IPATF), today reports its financial results for the third quarter ended January 31, 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 Antibodies successfully executed its initial public offering by way of a reverse takeover transaction (the "RTO") with Tanqueray Exploration Ltd. and its securities began trading on December 29, 2016 on the TSX Venture Exchange.
The Company's focus is to aggressively expand its share of the USD$2.6 billion research and development antibody market, delivering its products and services to academic, diagnostic, biotechnology and pharmaceutical customers globally. As a result of the RTO and subsequent financings, as of January 31, 2017 the Company had $3,373,440 in working capital to finance its growth initiatives.
For the three months ended January 31, 2017 the Company recorded revenue of $510,835, an increase of 24% compared to $413,021 for the three months ended January 31, 2016. For the nine months ended January 31, 2017, the Company recorded revenue of $2,036,067 representing an increase of 70% over the $1,200,256 recorded during the nine months ended January 31, 2016. With the new lab facility coming on line the Company's capacity for growth has increased.
For the nine months ended January 31, 2017 the Company incurred an operating loss of $297,774 compared to a loss of $205,304 for the same period during the previous year. Notwithstanding a higher level of sales, the operating loss was primarily due to the costs related to the RTO and because the Company began making foundational growth-enabling investments in operational efficiency and measures to improve gross margins, new information systems, internet marketing capabilities and a new website, and an expansion of its laboratory facilities. These investments will largely be completed within the next quarter and will ensure that the Company can maximize its return on any growth in revenue.
The Financial Statements of the Company for the nine months ended January 31, 2017 reflect a loss of $4,187,158 due to a listing expense associated with the RTO. The listing expense is a one-time accounting entry and is not reflective of ongoing operations of IPA. As the RTO was completed during the nine months ended January 31, 2017, the recording of the listing expense resulted in an accounting loss for the period.
To achieve the best results from its investments the Company added key personnel subsequent to the quarter ended January 31, 2017. On March 9, 2017 the Company announced that Dr. David Kroeger joined its scientific team. Further, the Company announced that Mr. David Orton joined the Company's executive leadership team as Chief Operating Officer on March 29, 2017, and on April 3, 2017 Ms. Lauren Smith will join the team as Vice-President responsible for Marketing and Sales. They are seasoned business leaders who will together bring the Company proven experience in building and leading rapidly growing organizations, as well success in marketing and sales within the life sciences sector. With the Company's CEO Mr. Tom D'Orazio, these strong additions to the Company's executive leadership team will enable the existing business to be sustained and grown, while providing the executive team with sufficient bench strength to successfully identify, pursue, and execute strategic partnerships and acquisitions.
About ImmunoPrecise Antibodies
ImmunoPrecise Antibodies provides its customers with custom antibody engineering and production services to support their research and development efforts.
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 and therapeutics. The target market for the Company's antibody and peptide products includes organizations in the academic, biological, diagnostic and pharmaceutical fields. This is a large growing market that is expected to double in the next ten years.
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 an experienced group of R&D scientists, and over the last 25 years its investments in research have led to the creation of innovative and proprietary technologies and methods that significantly improve 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. ImmunoPrecise 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 ImmunoPrecise 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 ImmunoPrecise's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause ImmunoPrecise'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 Inc., 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., 1450 - 701 West Georgia St., Vancouver, BC V7Y 1G5