HALIFAX, Dec. 6, 2013 /CNW/ - MedMira, Inc. (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, reported today on its financial results for the three month period ending October 31, 2013.
During the quarter, the Company received $6.105 million in new equity financing from its largest and controlling shareholder, OnSite Lab Holding AG. This investment supports significant go-to-market activities including sales and marketing programs aimed at putting MedMira's technology platform and products in front of customers and key decision makers in the United States and global markets.
Key initiatives accomplished this quarter include the hiring of Kevin Jones as Senior Director, Global Sales & Marketing and Markus Meile as Senior Director, International Markets, as well as the establishment of the Company's subsidiary, MedMira International AG, to serve strategic markets, customers, and partners internationally. The establishment of a US sales office is progressing well. Manufacturing automation is underway and major product development and commercialization projects are on track with new product launches set to begin in 2014.
First Quarter Financial Highlights
- The Company received $6.105 million in new equity financing from its largest and controlling shareholder, OnSite Lab Holding AG.
- The Company recorded revenue in the quarter totalling $472,846, as compared to $544,502 for the same period last year. Delays in sales opportunities in Latin America and other international markets as well as varying levels of service sales activity related to development and commercialization contracts contributed to the decrease in revenue.
- MedMira's product revenue and related royalties in the quarter were $174,720 as compared to revenue of $201,688 for the same period last year. Gross profit on product sales for the quarter was $93,731 (54%) compared to $114,253 (57%) in the same period in 2012.
- The Company recorded service revenue of $298,126 with a related gross margin of $46,701 compared to service revenues of $342,814 and related gross margin of $52,786 in the same period last year. The higher service revenue in 2012 is attributed to a large one-time payment to a contractor, which was covered by the US Army contract.
- Total operating expenses were $727,384 during the quarter compared to $668,883 in the first quarter of 2012. The increase in operating expenses is attributed to increased spending on research and development as well as sales and marketing ahead of the new product launches and commercialisation activates.
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]