Response Biomedical Corporation Announces Second Quarter Results

    VANCOUVER, Aug. 29 /CNW/ - Response Biomedical Corporation (TSX-V: RBM,
OTCBB: RPBIF) today reported financial results for the second quarter ended
June 30, 2007. For a further discussion of the Company's financial results for
the three and six months ended June 30, 2007, please refer to the Company's
consolidated financial statements and related MD&A, which can be found at, SEDAR (Canada) or EDGAR (US) Information at these sites is
typically available within 24 hours of the distribution of the news release.

    Second quarter operating highlights:

    "We continue to make strong progress building the foundation for growth
of our Company based on a robust menu of diagnostic tests on our RAMP-
platform," said Bill Radvak, President and CEO. "Integral to our success is
having sufficient capital to fund the projects that will allow us to become a
leader in point of care diagnostics. In July, subsequent to the end of the
second quarter, we closed a $12 million bought deal private placement with
Haywood Securities Inc. This additional capital allows us to further progress
one of our most important projects, the RAMP NT-proBNP congestive heart
failure test, which we have received country of origin approval to market the
test in Canada enabling us the ability to offer a comprehensive line of
cardiovascular tests in Canada. We are currently seeking US FDA approval for
the same CHF test in the U.S. In addition, in June, we filed for US FDA 510(k)
market clearance of our Rapid Influenza A+B Test, which will be marketed
exclusively by 3M. We are also seeking regulatory clearance in other global
jurisdictions and we hope to have the test commercially available in the US
before the next flu season. 3M is responsible for the regulatory process under
the IVD Directive for the Staph A Test, which is subject to self-certification
in Europe. They are gathering additional clinical data and are expecting to
implement the CE mark on the Staph A Test to support an estimated European
launch in 2008 assuming a successful outcome of their clinical studies."
    With regard to the financing discussed above, the Company issued
12,000,000 common shares at a price of $1.00 for each common share. The common
shares issued under the private placement have a hold period under Canadian
law of four months from the closing, which was July 23, 2007.

    Summary of Interim Results
    (Expressed in 000's except share data)

    Fiscal Year 2007                               Year to date  Year to date
                                                      June 30,     June 30,
                                                        2007         2006
    Total Revenue                                        $2,080       $1,861
    Research and Development Costs                       $3,937       $2,499
    Net Loss                                             $6,709       $4,063
    Loss per share (basic and diluted)                   ($0.06)      ($0.05)
    Cash and Cash Equivalents, Restricted Cash
     and Short Term Investments                          $2,726       $4,940
    Working Capital                                      $3,186       $5,431
    Weighted Average Common Shares Outstanding      114,033,963   82,396,974

    Financial Overview:

    Total revenues for the six-month period ended June 30, 2007 were
$2,080,000 compared to $1,860,550 for the same period in 2006, an increase of
    As at June 30, 2007, the Company had $2,725,741 in cash and cash
equivalents, restricted cash and short-term investments, a decrease of
$6,441,115 compared to $9,166,856 as at December 31, 2006. As at June 30,
2007, the Company had a working capital balance of $3,185,688 a decrease of
$6,088,105 compared to $9,273,793 as at December 31, 2006. Subsequent to the
end of the quarter, on July 23, 2007, the Company closed a private placement
financing for net proceeds of $11,160,000. During the six month period ended
June 30, 2007, the Company obtained $233,870 in cash through the issuance of
shares related to the exercise of stock options and $576,090 through the
exercise of warrants.

    About Response Biomedical

    Response Biomedical develops, manufactures and markets rapid on-site
diagnostic tests for use with its portable RAMP Platform for clinical and
environmental applications. RAMP represents a new paradigm in diagnostics that
provides high sensitivity and reliable information in minutes. It is ideally
suited to both point-of-care testing and laboratory use. The RAMP system
consists of a portable fluorescent reader and single-use disposable test
cartridges, and has the potential to be adapted to more than 250 medical and
non-medical tests currently performed in laboratories. RAMP clinical tests are
commercially available for the early detection of heart attack and congestive
heart failure.
    In late 2006, the Company formed a strategic alliance with 3M Company to
commercialize rapid infectious disease tests. In the non-clinical market, RAMP
Tests are currently provided for the environmental detection of West Nile
Virus, and Biodefense applications including the rapid on-site detection of
anthrax, smallpox, ricin and botulinum toxin. Several other product
applications are under development. The Company has achieved CE Marking and
its Quality Management System is registered to ISO 13485: 2003 and ISO 9001:
    Response Biomedical is a publicly traded company, listed on the TSX
Venture Exchange under the trading symbol "RBM" and quoted on the OTC Bulletin
Board under the symbol "RPBIF". For further information, please visit the
Company's website at

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    Statements contained in this press release relating to future results,
events or developments, for example, statements containing the words
"believes," "may," "could", "plans," "will," "estimate," "continue,"
"anticipates," "intends," "expects", "goal" and similar expressions, are
"forward-looking statements" or "forward-looking information" under applicable
United States and Canadian securities laws. Forward-looking statements or
information may involve, but are not limited to, comments with respect to our
planned activities, business plan and strategies and their future
implementation, and our expectations for our financial condition and the
results of, or outlook for, our business operations generally. Forward-looking
statements or information are subject to the related assumptions made by us
and involve known and unknown risks, uncertainties and other factors that may
cause actual results, events or developments to be materially different from
those expressed or implied by such statements or information.

    Many of such risks, uncertainties and other factors form part of our
underlying assumptions, and include, among other things, financial risks that
would affect our operations such as our available working capital and cash
flows and whether and for how long available funds will be sufficient to fund
our operations and our ability to raise additional capital as and when needed;
our need for substantial additional funding to conduct research and
development and commercialization activities; changing facility costs and
other risks relating to our facilities expansion plans; our ability to
establish, and our dependence upon, relationships with strategic alliance
partners to develop and commercialize products; technological changes that
impact our existing products or our ability to develop and commercialize our
products; our ability to obtain and enforce timely patent and other
intellectual property protection for our technology and products; our ability
to obtain and maintain rights to technology from licensors; liability for
patent, product liability and other claims asserted against us;
commercialization limitations imposed by patents owned or controlled by third
parties; technical risk in research and development; adverse results or
unexpected delays in product development and clinical trials; our ability to
retain, and our reliance upon, third party suppliers, manufacturers,
distributors and alliance partners; our ability to attract and retain
qualified personnel; our ability to effectively and efficiently manage the
planned growth of our operations; our ability to obtain, and the timing of,
necessary regulatory approvals; our ability to profitably sell our products at
prices that would be acceptable to third-party reimbursement programs;
competition including competition from others with significantly more
resources; market acceptance of our products and the size of our markets;
changes in business strategy or development plans; changes in, or the failure
to comply with, governmental regulations; fluctuations in interest rates and
foreign exchange rates; seasonality including government budget cycles;
general economic and business conditions where we operate; and other factors
referenced in our annual report on Form 40-F and other filings with Canadian
and United States securities regulatory authorities.

    Given these uncertainties, assumptions and risks, readers are cautioned
not to place undue reliance on such forward-looking statements or information.
We disclaim any obligation to update, or to publicly announce any revisions
to, any such statements or information to reflect future results, events or

For further information:

For further information: Response Biomedical Contacts: Bill Wickson,
Manager, Investor Relations, Response Biomedical Corporation, Tel (604)
456-6073, Email:; Brian Korb, Vice President, The
Trout Group LLC, Tel: (646) 378-2923, Email:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890