VICTORIA, Dec. 29, 2017 /CNW/ - IMMUNOPRECISE ANTIBODIES LTD. (the "Company") (TSXV: IPA, Pink Sheets: IPATF) today reports its financial results for the second quarter ended October 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.
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 of October 31, 2017, the Company had $3,374,437 in working capital to finance its growth initiatives.
The Company initiated research and development activities to expand its core business through the implementation of humanizing platforms for the production of humanized antibodies. The Company invested in the implementation of enterprise solutions for sales, finance, IT and HR to support core growth of the business and strategic acquisition activity and streamlined its contract administration to maintain and facilitate long term business relationships with its clients.
The Company continues to realize on the Board's commitment to grow globally through strategic acquisitions. The Company's focus is on becoming a single source provider of services across the full antibody discovery value chain (antigen design, hit generation, lead selection, lead optimization and lead characterization) and on offering the full spectrum of antibody production methodologies (library based technologies, hybridoma methods, transgenic animal based platforms and single B cell based technology).
Since the beginning of summer 2017, the Company has commenced its M&A acquisition strategy by:
- Acquiring all the outstanding shares of U-Protein B.V. ("UPE") on August 22, 2017.
- Entering into a Letter of Intent on December 7, 2017 to acquire all the outstanding shares of Modiquest Research B.V. ("Modiquest").
- Entering into a Letter of Intent on December 22, 2017 to acquire all the outstanding shares of Crossbeta Biosciences B.V. ("Crossbeta").
- Entering into a Letter of Intent on December 28, 2017 to acquire all the outstanding shares of Preclinics GmbH ("Preclinics").
- Entering into a Letter of Intent to subscribe for 35% of the issued and outstanding shares of SERPINx B.V.
During the three months ended October 31, 2017 the Company experienced an increase in revenues to $1,316,261 from $797,807 in 2016. This result represents a 65% increase in revenue and stems from the acquisition of U-Protein and the Company being able to grow its capacity in the core business and expand its market share to Europe through acquisition activities.
During the three months ended October 31, 2017 the Company experienced an increase in gross margin to $411,236 from $370,050 in 2016. The gross margin % decreased to 31% from 46% in 2016. This is primarily a result of the Company increasing its staffing levels, due to salary adjustments to market levels, operational integration costs as well as incurring higher lab operating costs to accommodate the anticipated future growth in revenues, particularly in the Molecular Lab due to capacity increase and the implementation of growth initiatives. The Company's research and development costs also increased as part of the Company's goal to broaden the breadth and value of its intellectual property assets, and perfect methods and techniques inherent in the production of humanized antibodies. At the end of the three months ended October 31, 2017 the Company reports that it is working on four such projects.
The Company recorded a net loss of $903,252 during the three months ended October 31, 2017, compared to net income of $101,164 for the three months ended October 31, 2016. The net loss is partly attributable to non-recurring costs in M&A expenses and foundational growth-enabling investments made to pursue strategic initiatives. These attracted consulting and management fees and other one-time costs for items such as systems development, business development, staff training programs and operational efficiency aimed at configuring the Company for significant future growth. In addition, the Company incurred consulting, travel and legal costs in connection with completing the acquisition of U-Protein.
About ImmunoPrecise Antibodies Ltd.
The Company is an integrated antibody solutions company that is a single source provider of services across the full antibody discovery value chain (antigen design, hit generation, lead selection, lead optimization and lead characterization). The Company utilizes the full spectrum of antibody production methodologies (library based technologies, hybridoma methods, transgenic animal based platforms and single B cell based technology) with a growing focus on generating human antibodies.
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.
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 two state-of-the-art laboratory facilities in North America and Europe. The Company's facility at the Vancouver Island Technology Park in Victoria, British Columbia houses tissue culture and molecular facilities, an animal care unit, and cryo-preservation facilities. Its facility in Utrecht, The Netherlands offers fast and large-scale production of (mammalian) recombinant proteins and antibodies for research and pre-clinical 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 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., 1450 - 701 West Georgia St., Vancouver, BC, V7Y 1G5