Implementation of Strategic Plan Sets Foundation for Sales Growth, Automation, and Product Launches in 2014
HALIFAX, Nov. 28, 2013 /CNW/ - MedMira, Inc. (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, reported today on its financial results for the quarter and year ended July 31, 2013. Over the course of fiscal year 2013, MedMira began executing on a strategic plan and activities intended to drive positive growth and revenue generation in 2014.
According to Hermes Chan, Chief Executive Officer, MedMira, "We have implemented many strategic changes during fiscal year 2013, and we are confident that these changes have set the stage for MedMira's substantial growth in 2014. Our sales and marketing team is now well resourced both internally and externally with a focus on key markets. We are also entering the implementation phase of manufacturing automation, and all major project milestones are being met on time and on budget. These efforts are buoyed by a strong product pipeline, including the Multiplo and Miriad product ranges, and steadily increasing awareness and endorsement of our technology platform by customers, partners, and collaborators around the world."
Despite some restructuring during this period, the Company maintained financial stability, continued to support ongoing sales and marketing activities, executed research and development initiatives, achieved technology advancements, and undertook major commercialization projects for key customers and partners.
"Our strengthened business development and sales and marketing programs, with key hires in the US and internationally and our network of strategic partners, positions us well to take our technology and products forward in to new markets in 2014," Chan added.
- The Company recorded revenue in the year ended July 31, 2013 totalling $2,001,464, which included product sales, related royalties, and service sales, as compared to $970,631 for the same period last year, which included product sales and related royalties, an increase of $1,030,833.
- MedMira's revenue from product sales and related royalties in the year ended July 31, 2013 was $864,798 as compared to $970,631 for the same period last year. Gross profit on product sales for the year was $429,389 (50%) compared to $594,235 (61%) in the same period in 2012. The decrease in product revenue by 10.9% was attributed to the inventory adjustment in US after the Company transitioned its sales channel from an agent to direct distributor sales with higher margins. A delay in expected tender business in Latin America during the fourth quarter also contributed to the overall decrease.
- The Company recorded revenue from service sales for the first time in the year ended July 31, 2013 of $1,136,666 with a related gross margin of $201,386. The Company earned revenue and gross margin on a research contract with the US Army.
- For the fourth quarter, MedMira recorded total revenue of $595,000, compared to $272,000 for the same period in 2012.
- Total operating expenses decreased to $2,796,145 during the year compared to $2,958,876 in 2012. The decrease in operating expenses is attributed to a greater portion of costs being allocated to cost of sales.
- During the year ended July 31, 2013, the Company completed its debt restructuring initiative with an additional $715,689 in debt forgiveness and lower interest charges on its loans.
- Subsequent to the close of fiscal year 2013, the Company received $6.105 million in new equity financing from its largest and controlling shareholder, OnSite Lab Holding AG. This new investment is being used to support sales and marketing activities in the US and international markets where the Company has initiated product launch plans to begin in 2014.
MedMira is the leading developer and manufacturer of flow-through rapid diagnostics and technologies. MedMira is the only Canadian company to be awarded US Army contracts for the development of rapid tests for HIV and Hepatitis viruses. The Company's testing solutions provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The Company's tests are sold under the Reveal®, Multiplo™ and Miriad brands in global markets. MedMira is located in Halifax, Nova Scotia, Canada. www.medmira.com.
This news release contains forward-looking statements, including statements relating to growth in the Company's business, earnings and profitability, and trends in demand for the Company's products, which involve risk and uncertainties and reflect the Company's current expectation regarding future events including statements regarding possible future growth and new business opportunities. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
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.
SOURCE: MEDMIRA INC.
For further information:
Andrea Young, Corporate Communications
Email: [email protected]