CALGARY, April 1, 2014 /CNW/ -
Dear Vivione Shareholder:
It is my pleasure to report on our company's progress as we approach our 1st anniversary after becoming publicly listed on the TSX Venture Exchange. When we went public, we told the market that we would continue to develop our assays, initiate the certification process for our food assays, and begin commercializing our other offerings.
Since that time I am happy to update you on our achievements, specifically the following milestones:
|1)||We secured $1,000,000 in equipment financing which enables us to quickly place RAPID B units with researchers and key influencers in our target industries;|
|2)||We signed a new three-year Cooperative Research and Development Agreement (CRADA) with the US FDA for prion research (mad cow disease);|
|3)||We expanded our senior management team with new officer appointments, including a Chief Medical Officer and a Chief Science Officer who have in-depth clinical and food safety industry experience; and|
|4)||We signed a strategic alliance with AriBio, a South Korean biotech and drug development company in order to further develop our prion project and other technologies.|
As promised, we have made great strides with our RAPID B products in the food (specifically beef) FSIS and AOAC certification process. We anticipate obtaining final FSIS and AOAC certifications by the end of 2Q2014 for both our E. coli O157 and non-O157 STEC assays. In addition, we continue to make advancements in the commercialization of our platform for the poultry and processed meats market and we anticipate approval by early 2015 for our new Salmonella and Listeria assays.
As a result of our continued research and new market penetration strategy, we are leveraging our RAPID B platform for use in other reagent opportunities that require minimal to no certifications in contrast to food and clinical applications. These new applications will allow us to expand our market footprint and more importantly, open up immediate revenue generating opportunities. The following chart shows the progression of the new applications and timeline for commercialization:
Below is a brief description of the development plans for our new assays that will support our rollout plan over the next two years:
Food Safety: We are continuing the development of the generic E. coli, Coliforms, Salmonella and Listeria assays which will enable us to address the poultry, processed meats, and bottled water market opportunities in 2015.
Industrial: We are aggressively pursuing the assays for identifying, enumerating, and characterizing sulfate reducing bacteria (SRBs) in the oil & gas sector. This will include the characterization of new and frac'd wells, along with perpetual residual testing of active wells. We anticipate launching a commercial product in 3Q2014 with revenue generation beginning in 4Q2014.
Clinical: We are pursuing new opportunities for 2015 commercialization in the clinical sector including:
- A general bacteria analysis for blood and urine testing
- A Staphylococcus-aureus analysis for both blood and bronchial lavage
- Pseudomonas aeruginosa and Klebsiella pneumonia analyses for blood testing
The clinical market has always been the long-term valuation driver for our diagnostic strategy, having the greatest upside potential for Vivione in terms of revenue and market cap appreciation. Testing procedures currently used in the clinical setting can take up to 16-18 hours to produce first results. Our RAPID B system's ability to identify a single cell of bacteria with reduced time to results could revolutionize how hospitals and clinics throughout the world treat patients and do business. When every minute counts in the hospital, saving hours means saving lives.
Our funding and revolutionary technology has afforded us the good fortune in recruiting new world class senior staff members to help us achieve our objectives. Below is a chart reflecting the addition of the two new key officers to the company. We have also added one laboratory technician, along with marketing and corporate development support.
In closing, I believe the new strategy and product offerings will allow us to quickly generate ongoing revenue and cash flow, plus build additional sales channels that should allow us to increase the market value of the company. As a team, we embrace the challenge as an opportunity to make a difference in the lives of our employees, our shareholders and the potential to save lives with our new clinical products.
As shareholders in this young and vibrant company, I thank you for your unwavering support. I hope you share my excitement about Vivione's future and how we are making a difference in the world around us.
Chairman and Chief Executive Officer
VIVIONE BIOSCIENCES INC.
This document contains "forward-looking statements" within the meaning of applicable securities laws. Although Vivione believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based on factors and assumptions concerning future events that may prove to be inaccurate. These factors and assumptions are based upon currently available information to Vivione. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. This document contains forward-looking information relating to the commercialization and the development of RAPID-B, Vivione's business and growth strategy, the ability of RAPID-B to generate revenue and the success of RAPID-B in target markets. Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this document are made as of the date of this document and, except as required by applicable law, Vivione does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. Vivione undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Vivione, or its financial or operating results or (as applicable), their securities.
Image with caption: "Timeline for Commercialization (CNW Group/Vivione Biosciences Inc.)". Image available at: http://photos.newswire.ca/images/download/20140401_C8000_PHOTO_EN_38690.jpg
Image with caption: "2014 Management Team (CNW Group/Vivione Biosciences Inc.)". Image available at: http://photos.newswire.ca/images/download/20140401_C8000_PHOTO_EN_38691.jpg
SOURCE: Vivione Biosciences Inc.
For further information:
Chairman and Chief Executive Officer
VIVIONE BIOSCIENCES INC.