Response Biomedical Reports 2006 Financial Results

    VANCOUVER, April 30 /CNW/ - Response Biomedical Corporation (TSX-V: RBM,
OTCBB: RPBIF) today reported financial results for the year ended December 31,
2006. Amounts, unless specified otherwise, are expressed in Canadian dollars
and in accordance with Canadian generally accepted accounting principles.
Select operational and financial results are outlined below and should be read
in conjunction with the Company's audited 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.

    In announcing the results, President and CEO Bill Radvak said, "For
Response Biomedical and our stakeholders, 2006 will be viewed as a year of
gaining tremendous credibility and validation, starting with the complete
reorganization of the independent members of the Board of Directors and ending
with a significant commercial partnership with 3M Company, one of the world's
leading technology companies. In the 1990's we started the business with only
an elegant idea for a novel near-patient technology and closed 2006 having
validated our vision of having a near-patient diagnostics platform with what
we believe is the best combination of speed, cost, ease-of-use, sensitivity
and accuracy. For the year ended December 31, 2006, we showed an increase in
revenues from clinical product sales, primarily from cardiovascular products,
of 219% to $2.4 million compared to $738,456 in 2005. This increase is largely
due to sales to new distributors including sales to Shionogi & Co. Ltd. of
Japan, in addition to recurring test sales to a growing customer base. In
2007, we expect to see continued growth from clinical test revenues, as we
look forward to adding three additional clinical tests to the current menu
with marketing clearances expected for the NT-proBNP Test, as well as tests
for Staphylococcus aureus (Staph A) and Influenza (Flu) A/B, through 3M."
    Total revenues for the year ended December 31, 2006 were $4.42 million
compared to $3.49 million in 2005, an increase of 27%. Revenue from all
product sales for the year ended December 31, 2006 were $3.8 million compared
to $3.1 million in 2005, an increase of 23%. The growth from clinical sales
was somewhat offset by a 9% reduction in sales of the Company's West Nile
Virus products for the year ended December 31, 2006 to $646,032 compared to
$707,477 in 2005. This decrease is mainly due to a reduction in average
product price as well as a decrease in the average Canadian to US dollar
exchange rate. In addition, biodefense product sales for the year ended
December 31, 2006 decreased 52% to $784,118 compared to $1.6 million in 2005.
    Revenues from contract fees and collaborative research arrangements for
the year ended December 31, 2006 were $633,721 compared to $401,042 in 2005,
an increase of 58%. This increase is primarily due to the timing of the
performance of services required to recognize service revenue from the
Company's collaborations, as well as an increase in milestone-based funding
related to the development of the Company's BNP Test for the Japanese market
and the Staph A Test, both of which were largely completed in 2006.
    Overall gross profit margin for the year ended December 31, 2006 was 48%
compared to 53% for 2005 primarily due to reduced sales, both in absolute and
relative terms, of biodefense products, which generate higher per unit profits
than other products, as well as increased payroll and higher rent and facility
costs, following the Company's move to a larger facility in October 2005. This
was partially offset by an increase in higher margin contract service and
collaboration fees.
    For the year ended December 31, 2006, the Company reported a loss of $9.3
 million or $0.10 per share compared to a loss of $8.4 million or $0.12 per
share in 2005. The increase in loss for the year ended December 31, 2006
compared to 2005 is primarily due to increased research and development
expenditures for new research and development projects, including the
Company's next generation RAMP(R) Reader, license fees for rights to develop a
RAMP NT-proBNP Test for the diagnosis of congestive heart failure, higher
payroll expenses and an increase in facility costs.
    As at December 31, 2006, the Company had a working capital balance of
approximately $9.3 million and no outstanding loans.

    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 announced a strategic alliance with 3M Company
to commercialize rapid infectious disease tests. Clinical trials for Staph A
and Flu A/B Tests are now complete and analysis of the data is underway, with
commercialization expected in 2007.
    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: 2000.
    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; 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 and distributors; 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 20-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:

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