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
BnkToTheFuture.com is the largest online investment platform for investing in FinTech, Bitcoin and Blockchain companies. We believe the future of finance looks very different from the past and we aim to invest and provide trading opportunities for qualifying investors that want to build a portfolio in the sector in compliance with international financial regulations.
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...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
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...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
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, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"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...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"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...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...