Welcome!

Eclipse Authors: Pat Romanski, Elizabeth White, Liz McMillan, David H Deans, JP Morgenthal

Related Topics: Eclipse

Eclipse: Article

CORRECTION FROM SOURCE: Stellar Pharmaceuticals Announces 2006 Fourth Quarter and Year-End Financial Results

CORRECTION FROM SOURCE: Stellar Pharmaceuticals Announces 2006 Fourth Quarter and Year-End Financial Results

LONDON, ONTARIO -- (MARKET WIRE) -- 03/30/07 -- The following corrects and replaces the release sent on MARCH 30, 2007 at 07:30 ET. The second paragraph, last sentence should read "Without this licensing fee, revenue for the quarter was..." and not "Without this licensing revenue, income for the quarter was..." The complete and corrected release follows.

Stellar Pharmaceuticals Inc., (TSX VENTURE: SLX)(OTCBB: SLXCF) ("Stellar" or "the Company"), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced financial results for the fourth quarter and twelve months ended December 31, 2006. All amounts in this press release are in Canadian dollars and are stated using U.S. GAAP.

Fourth Quarter 2006 Results and Highlights

Total revenues for the three month period ended December 31, 2006 increased 486% to $3.1 million compared to $522,823 in the same period during 2005. This growth was mainly due to the initial payment received from the signing of a license agreement with Watson Pharmaceuticals Inc, completed in December 2006. Without this licensing fee, revenue for the quarter was $521,730 compared to $522,823 for the same period in 2005.

NeoVisc Regains Market Share, Uracyst continues growth

Canadian sales of NeoVisc in the fourth quarter of 2006 declined 8.8% compared to the same period in 2005. Despite this, NeoVisc continues to regain market share from the problems experienced in the fourth quarter of 2005 and first quarter of 2006. The details of which were previously announced in a press release dated March 31, 2006. With a strategy implemented in the later part of 2006 to recapture market share, Stellar is pleased to announce that the growth curve for NeoVisc in the last quarter of 2006 has moved back into the upward trend it showed in 2005. Although there can be no assurances, the Company is confident this trend should continue in 2007.

Canadian sales of Uracyst grew 23.1% for the quarter as the Canadian marketing focus continues to show good results. GAG deficient cystitis has few successful therapies and Uracyst is establishing its dominance as a treatment of choice for this disorder.

In-licensed revenue form NMP22 BladderChek also grew by 353.9% in the fourth quarter as this point of care diagnostic and monitoring device for bladder cancer continues to gain acceptance by Canadian urologists. Stellar attributes much of this growth to the success of a number of sales initiatives directed towards easing the physician prescription process, which, in turn, have helped to increase the adoption of this product in Canada.

During the fourth quarter of 2006, business development activities were focused on completing the exclusive licensing agreement for Uracyst with Watson Pharmaceuticals Inc. for the United States market. Stellar received an upfront payment of US$2.2 million upon signing this agreement and will receive additional milestone payments and an ongoing royalty stream from future sales of Uracyst in the United States, if and when sales commence. Watson will be responsible for conducting clinical trials and obtaining regulatory approvals for these products in the United States. Stellar expects that the signing of this agreement could help to further the accelerated growth of Uracyst on a global basis. One time professional fees of $252,596 were incurred in negotiating this agreement, which the Company has recorded as selling, general and administrative expenses.

Peter Riehl, the Company's President and CEO, stated. "We made significant progress this quarter. In both October and November the Company was profitable from operations, achieving a goal set for 2006. Completion of the Uracyst license and supply agreement for the United States market with a multibillion dollar pharmaceutical company was an enormous milestone and we are continuing similar efforts to locate a U.S. licensee for NeoVisc."

2006 Year-end Results and Highlights

For the year ended December 31, 2006, total operating revenues from all sources increased 125% to $4.4 million compared to $1.9 million in the same period during 2005. When revenue for 2006 is adjusted for licensing fees of $2.5 million, the revenues for 2006 would show a decrease of 5.7%. Revenues were negatively impacted by sales of NeoVisc which showed a decline of 21.5% as discussed above in "fourth quarter review". In 2006, Uracyst revenue grew by 33.8% over 2005 due mainly to growth in the Canadian market. BladderChek sales grew by 95.4% in 2006 due to strong clinical support out of the United States and growing physician support in Canada.

Gross profit for 2006 was up 194.4% to $3.9 million compared to $1.3 million in 2005. Stellar reported net income in 2006 of $1.3 million, or $0.05 per diluted share, on 23.6 million weighted average common shares outstanding ("shares outstanding"), compared to a net loss of $1.7 million, or $0.08 loss per diluted share, on 23.2 million shares outstanding in 2005. Although profitability was driven by licensing revenue, profitability from operations experienced in both October and November 2006 will be the objective the Company will strive for in 2007.

Balance Sheet Highlights

The Company has $3.5 million in cash and cash equivalents compared to $2.1 million for December 31, 2005. Stellar continues to have no long-term debt on its balance sheet at December 31, 2006.

Peter Riehl further commented "I am exceptionally pleased with our progress over the past year, despite some hurdles. I am confident our dedicated focus on continued research and development and growth of our global licensing program will continue to enhance Stellar's worldwide presence for its products."

Conference Call

Management will conduct a conference call today at 11 a.m. Eastern Time to discuss these results. Interested parties may participate in the call by dialing 877-461-2814 (in the United States) or 416-695-9753 (in Canada) approximately 10 minutes before the call is scheduled to begin and ask to be connected to the Stellar Pharmaceuticals Conference Call.

About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada, and in 30 countries around the world through out-license agreements, three products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst® and the Uracyst® Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has an in-licensing agreement for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.

                        STELLAR PHARMACEUTICALS INC.
                              BALANCE SHEETS
                             (Canadian Funds)
                               December 31

                                  ASSETS
                                                          2006        2005
                                                   -----------  ----------
CURRENT
 Cash and cash equivalents                       $   3,515,193 $ 2,108,755
 Accounts receivable, net of allowance $nil
  (2005 - $nil)                                        199,704     157,749
 Inventories                                           274,597     288,337
 Prepaid, deposits and sundry receivables               55,407     152,514
                                                   -----------  ----------
                                                     4,044,901   2,707,355

PROPERTY, PLANT AND EQUIPMENT                          853,818     959,999

OTHER ASSETS                                            49,691      46,187
                                                   -----------  ----------
                                                 $   4,948,410 $ 3,713,541
                                                   -----------  ----------
                                                   -----------  ----------

                               LIABILITIES
CURRENT
 Accounts payable                                $     226,026 $   487,359
 Accrued liabilities                                   135,198     122,999
 Deferred revenues                                       1,500      43,397
                                                   -----------  ----------
                                                       362,724     653,755
                                                   -----------  ----------

CONTINGENCIES AND COMMITMENTS

                          SHAREHOLDERS' EQUITY

CAPITAL STOCK
 AUTHORIZED
  Unlimited   Non-voting, convertible, redeemable
               and retractable preferred shares
               with no par value
  Unlimited   Common shares with no par value

 ISSUED
  23,819,040  Common shares (2005 - 23,470,190)      8,299,554   8,100,253
              Paid-in capital options - outstanding    513,990     545,025
                                      - expired        201,322      98,913
                                                   -----------  ----------
                                                     9,014,866   8,744,191


DEFICIT                                             (4,429,180) (5,684,405)
                                                     4,585,686   3,059,786
                                                   -----------  ----------
                                                   $ 4,948,410 $ 3,713,541
                                                   -----------  ----------
                                                   -----------  ----------




                       STELLAR PHARMACEUTICALS INC.
                        STATEMENTS OF OPERATIONS
                            (Canadian Funds)
                     FOR THE YEARS ENDED DECEMBER 31

                                                          2006        2005
                                                   -----------  ----------

PRODUCT SALES                                      $ 1,427,264 $ 1,627,670

COST OF GOODS SOLD                                     419,652     450,591
                                                   -----------  ----------

MARGIN ON PRODUCT SOLD                               1,007,612   1,177,079

ROYALTIES & LICENSING REVENUE                        2,950,433     314,581
WRITE-DOWN OF OBSOLETE INVENTORY                        (7,291)    (36,238)
OTHER PRODUCT COST                                     (29,205)   (123,152)
                                                   -----------  ----------

GROSS PROFIT                                         3,921,549   1,332,270
                                                   -----------  ----------

EXPENSES
 Selling, general and administrative                 2,332,452   2,418,918
 Research and development                              217,607     608,957
 Amortization                                          159,117     144,582
                                                   -----------  ----------

                                                     2,709,176   3,172,457
                                                   -----------  ----------

INCOME (LOSS) FROM OPERATIONS                        1,212,373  (1,840,187)

INTEREST AND OTHER INCOME                               42,852      99,689
                                                   -----------  ----------
NET INCOME (LOSS) FOR THE YEAR BEFORE
 TAXES                                             $ 1,255,225 $(1,740,498)

INCOME TAXES                                                 -           -
                                                   -----------  ----------

NET INCOME (LOSS)                                  $ 1,255,225 $(1,740,498)
                                                   -----------  ----------
                                                   -----------  ----------
EARNINGS (LOSS) PER SHARE             - Basic      $      0.05 $     (0.08)
                                                   -----------  ----------
                                                   -----------  ----------
                                      - Fully
                                         diluted   $      0.05 $         -
                                                   -----------  ----------
                                                   -----------  ----------
WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING                   - Basic       23,575,479  23,182,107
                                                   -----------  ----------
                                                   -----------  ----------
                                      - Fully
                                         diluted    23,634,070           -
                                                   -----------  ----------
                                                   -----------  ----------




                       STELLAR PHARMACEUTICALS INC.
                        STATEMENTS OF CASH FLOWS
                           (Canadian Funds)
                     FOR THE YEARS ENDED DECEMBER 31

                                                          2006        2005
                                                   -----------  ----------
CASH FLOWS PROVIDED BY (USED IN)
 OPERATING ACTIVITIES
 Net income (loss) for the year                    $ 1,255,225 $(1,740,498)
 Amortization                                          159,117     144,582
 Issuance of equity instruments for services
  rendered                                             114,512     257,279
                                                   -----------  ----------
                                                     1,528,854  (1,338,637)
 Change in non-cash operating assets and
  liabilities
  (Increase) decrease in accounts receivable           (41,955)     24,011
  Decrease in inventories                               13,740      48,154
  Decrease in prepaid, deposits and sundry
   receivables                                          97,107       3,458
  Increase (decrease) in accounts payable and
   accrued liabilities                                (249,134)    235,231
  Decrease in deferred revenues                        (41,897)   (177,923)
                                                   -----------  ----------
                                                     1,306,715  (1,205,707)
                                                   -----------  ----------

INVESTING ACTIVITIES
 Additions to property, plant and equipment            (51,581)   (151,558)
 Increase in other assets                               (4,859)    (30,915)
                                                   -----------  ----------
                                                       (56,440)   (182,473)
                                                   -----------  ----------
FINANCING ACTIVITIES
 Issuance of common stock                              156,163     324,064
                                                   -----------  ----------
                                                       156,163     324,064
                                                   -----------  ----------
CHANGE IN CASH AND CASH EQUIVALENTS                  1,406,438  (1,064,115)

CASH AND CASH EQUIVALENTS, beginning of year         2,108,755   3,172,870
                                                   -----------  ----------

CASH AND CASH EQUIVALENTS, end of year             $ 3,515,193 $ 2,108,755
                                                   -----------  ----------
                                                   -----------  ----------

Contacts:
Stellar Pharmaceuticals Inc.
Peter Riehl
President & CEO
(519) 434-1540 or Toll Free: 1-800-639-0643

Stellar Pharmaceuticals Inc.
Arnold Tenney
Chairman
(416) 587-3200

Seventh Circle Consulting, LLC
Christine Petraglia
(646) 354-8886

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things’). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing? IoT is not about the devices, it’s about the data consumed and generated. The devices are tools, mechanisms, conduits. In his session at Internet of Things at Cloud Expo | DXWor...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...