MISSISSAUGA, ON, Aug. 28, 2012 /CNW/ - Mr. Brian Pedlar, President and
CEO of Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV:
COV), an advanced medical technologies company, is pleased to provide
the following update.
"We continue to expand our distribution channel in the United States,
Middle East and Asia. During the nine months ended June 30, 2012,
Covalon signed new distribution partners for wound care and
antimicrobial product and moved new products through the regulatory
On May 15, 2012 Covalon reached a significant milestone with the
announcement of United States Food and Drug Administration ("FDA")
clearance of IV Clear, the Company's breakthrough antimicrobial
silicone adhesive film dressing designed for securing vascular
intravenous access devices.
On August 21, 2012, Covalon announced FDA clearance of SurgiClear
antimicrobial silicone adhesive film dressing designed to cover and
protect wound sites and wound closure devices, as well as secure other
primary dressings to a patient's skin.
Both dressings are major clinical achievements because of their proven
ability to kill over 99.99% of bacteria that contact the wound
dressings antimicrobial silicone adhesive and they allow clinicians to
monitor wounds through their clear waterproof film so patients can
resume normal activity without fear of contamination or damage to a
wound or insertion site.
During the quarter ended June 30, 2012, Covalon presented its products
and technology at four trade shows and introduced five new wound care
and antimicrobial products. Covalon has secured distribution
relationships with two new partners in the Middle East, one new partner
in Asia and four new partners in the United States. The Company expects
to announce in the coming months a number of new distribution
relationships as a result of our successes at the trade shows attended
this past quarter.
During the nine months ended June 30, 2012, Covalon recognized modest
revenue from shipments to over 15 new and recurring wound care
distribution partners compared to just two in the first nine months of
the previous year. We expect to sign additional new distribution
partners in the coming months, and expect the shipment volumes of wound
care products to our new distributors to increase both within North
America and internationally over time.
We continue to see very promising progress in developing a profitable
distribution network and I am confident that these improvements will
translate into improved financial results in the coming quarters and
beyond", stated Brian Pedlar, Covalon's President and CEO.
The Company announced financial results for its third quarter of fiscal
2012 ended June 30, 2012. Revenue for the quarter was $1,078,564, a
substantial increase compared to the prior year's third quarter, driven
by increased sales of the Company's wound care product ColActive Plus
and medical coating products and services. Sales of IV Clear and
SurgiClear are expected to begin in the Company's next fiscal quarter.
Quarterly operating expenses were $1,303,993 or an increase of $3,896
over the comparative period. The Company continues to invest in sales
and marketing activities including adding additional sales and
marketing staff and attendance at sales-related trade shows compared to
last year. Net loss was $732,308 or $0.01 per share. Covalon continues
to have no long-term debt and over $2,100,000 in cash, cash equivalents
and short-term investments as of June 30, 2012.
Covalon Technologies Ltd. researches, develops and commercializes new
healthcare technologies that help save lives around the world.
Covalon's patented technologies, products and services address the
advanced healthcare needs of medical device companies, healthcare
providers and individual consumers. Covalon's technologies are used to
prevent, detect and manage medical conditions in specialty areas such
as wound care, tissue repair, infection control, disease management,
medical device coatings and biocompatibility. To learn more about
Covalon, visit our website at www.covalon.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The
forward-looking statements are often, but not always, identified by the
use of words such as "seek", "anticipate", "plan, "estimate", "expect",
"intend" and statements that an event or result "may", "will",
"should", "could" or "might" occur or be achieved and other similar
expressions. These forward-looking statements involve risk and
uncertainties, including the difficulty in predicting product
approvals, acceptance of and demands for new products, the impact of
the products and pricing strategies of competitors, delays in
developing and launching new products, the regulatory environment,
fluctuations in operating results and other risks, any of which could
cause results, performance, or achievements to differ materially from
the results discussed or implied in the forward-looking statements.
Many risks are inherent in the industry; others are more specific to
the Company. Investors should consult the Company's ongoing quarterly
filings for additional information on risks and uncertainties relating
to these forward-looking statements. Investors should not place undue
reliance on any forward-looking statements. The Company assumes no
obligation to update or alter any forward-looking statements whether as
a result of new information, further events or otherwise.
SOURCE Covalon Technologies Ltd.