News | News By Subject | News by Disease News By Date | Search News
Get Our FREE
Industry eNewsletter
email:    
   

Stellar Pharmaceuticals Inc. (SLX.V) Reports Third Quarter 2010 Financial Results


11/9/2010 9:17:50 AM

LONDON, ONTARIO--(Marketwire - November 09, 2010) - Stellar Pharmaceuticals Inc. (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 quarter ended September 30, 2010. In this press release, all dollar amounts are expressed in Canadian currency rounded to the nearest hundredth. These results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).

For the three-month period ended September 30, 2010, Stellar's total revenues from all sources were $2,236,900 as compared to $826,900 in the same period in 2009. The Company noted that total revenues in for the third quarter of 2010, were positively impacted by a milestone payment from Watson Pharma, Inc. of $1,345,200 related to the issuance of the Company's Uracyst® high-dose patent in the United States. With respect to product sales, the Company experienced solid growth for all products in the Canadian market as well as strong growth for Uracyst® in international markets. International NeoVisc® sales, however, declined primarily as a result of a negative economic situation in Eastern Europe. Stellar's net profit for the three-month period ended September 30, 2010 was $1,380,800. This result compares to a profit of $25,900 that was generated in the same period in 2009.

Stellar ended the quarter in a strong financial position, with no debt and working capital of $4,599,100. This amount does not include the gross proceeds of US$1,000,000 from a non-brokered private placement of 1,000,000 Units of the Company that was completed in October 2010. Each unit consists of one Common Share and warrants to purchase up to 1,500,000 additional Common Shares.

Peter Riehl, Stellar's President and Chief Executive Officer, commented, "We entered 2010 with a strong focus on building Canadian sales and expanding global partnerships for our two lead products, Uracyst® and NeoVisc®. By virtually any measure that focus has delivered improved operating performance over the previous year. Now, as we move through the fourth quarter, we will continue to execute our growth strategy while carefully managing our expenses."

About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements two products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst®, its patented technology for treatment of interstitial cystitis/painful bladder syndrome, an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreement for the distribution and sale of NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer. For more information, please visit the company's website at www.stellarpharma.com.

Forward-Looking Statements

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

(Expressed in Canadian dollars)


                                                        As at          As at
                                                September 30,   December 31,
                                                         2010           2009
                                                  (Unaudited)               
            ASSETS                                                          
CURRENT                                                                     
Cash and cash equivalents                     $     3,274,412 $    2,325,212
Accounts receivable, net of allowance of $nil                               
 (2009 - $nil)                                        608,513        293,565
Inventories                                           799,825        721,061
Taxes recoverable                                       5,998          1,501
Loan receivable                                        15,814         15,818
Prepaids, deposits and sundry receivables             125,000        163,698
                                              ------------------------------
            Total current assets                    4,829,562      3,520,855
PROPERTY, PLANT AND EQUIPMENT, net                  1,574,899      1,390,296
OTHER ASSETS                                          129,999        114,553
                                              ------------------------------
            Total assets                      $     6,534,460 $    5,025,704
                                              ------------------------------
                                              ------------------------------
                  LIABILITIES                                               
CURRENT                                                                     
Accounts payable                              $       134,847 $      228,367
Accrued liabilities                                    91,173        175,637
Deferred revenues                                       4,473          2,890

                                              ------------------------------
            Total current liabilities                 230,493        406,894
                                              ------------------------------

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                                                                     
 23,585,040 Common shares (December 31, 2009 -                              
             23,480,040)                            8,291,429      8,183,638
            Additional Paid-in capital options                              
             - outstanding                            172,849         89,562
            Additional Paid-in capital options                              
             - expired                                724,127        724,127
                                              ------------------------------
                                                    9,188,405      8,997,327
DEFICIT                                           (2,884,438)    (4,378,517)
                                              ------------------------------
            Total shareholders' equity              6,303,967      4,618,810
                                              ------------------------------
            Total liabilities and                                           
             shareholders' equity             $     6,534,460 $    5,025,704
                                              ------------------------------
                                              ------------------------------


STELLAR PHARMACEUTICALS INC.

CONDENSED STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME AND DEFICIT

(Expressed in Canadian Dollars)

(Unaudited)


                    For the Three Month Period     For the Nine Month Period
                            Ended September 30            Ended September 30
                           2010           2009           2010           2009
                ------------------------------------------------------------

PRODUCT SALES    $      690,881 $      811,684 $    2,052,144 $    2,270,229
ROYALTY AND                                                                 
 LICENSING                                                                  
 REVENUES             1,546,044         15,233      2,018,472        403,498
                ------------------------------------------------------------
 TOTAL REVENUES                                                             
  FROM ALL                                                                  
  SOURCES             2,236,925        826,917      4,070,616      2,673,727
COST OF PRODUCTS                                                            
 SOLD                   235,334        275,710        719,809        763,744
                ------------------------------------------------------------
GROSS PROFIT          2,001,591        551,207      3,350,807      1,909,983
                ------------------------------------------------------------

EXPENSES                                                                    
 Selling,                                                                   
  general and                                                               
  administrative        566,371        505,391      1,726,890      1,646,388
 Research and                                                               
  development            45,606          9,009         81,560         16,420
 Amortization                                                               
  (non-                                                                     
  manufacturing                                                             
  property,                                                                 
  plant and                                                                 
  equipment)             11,600         14,488         38,919         41,888
                ------------------------------------------------------------
                        623,577        528,888      1,847,369      1,704,696
                ------------------------------------------------------------
INCOME FROM                                                                 
 OPERATIONS           1,378,014         22,319      1,503,438        205,287
INTEREST AND                                                                
 OTHER INCOME             2,827          3,559          5,949         10,462
LOSS ON DISPOSAL                                                            
 OF EQUIPMENT                 -              -       (15,308)              -
                ------------------------------------------------------------

INCOME AND                                                                  
 COMPREHENSIVE                                                              
 INCOME FOR THE                                                             
 PERIOD BEFORE                                                              
 INCOME TAXES         1,380,841         25,878      1,494,079        215,749

NET INCOME AND                                                              
 COMPREHENSIVE                                                              
 INCOME FOR THE                                                             
 PERIOD               1,380,841         25,878      1,494,079        215,749

DEFICIT,                                                                    
 beginning of                                                               
 period             (4,265,279)    (4,425,682)    (4,378,517)    (4,615,553)
                ------------------------------------------------------------
DEFICIT, end of                                                             
 period          $  (2,884,438) $  (4,399,804) $  (2,884,438) $  (4,399,804)
                ------------------------------------------------------------

EARNINGS PER                                                                
 SHARE - basic   $         0.06 $         0.00 $         0.06 $         0.01
                ------------------------------------------------------------

WEIGHTED AVERAGE                                                            
 NUMBER OF                                                                  
 COMMON SHARES                                                              
 OUTSTANDING -                                                              
 BASIC               23,585,040     23,493,736     23,517,256     23,505,241
                ------------------------------------------------------------

EARNINGS PER                                                                
 SHARE - diluted $         0.06 $         0.00 $         0.06 $         0.01
                ------------------------------------------------------------

WEIGHTED AVERAGE                                                            
 NUMBER OF                                                                  
 COMMON SHARES                                                              
 OUTSTANDING -                                                              
 DILUTED             23,594,579     23,493,736     23,518,390     23,505,241
                ------------------------------------------------------------

STELLAR PHARMACEUTICALS INC.

STATEMENTS OF CASH FLOWS

(Expressed in Canadian dollars)

(Unaudited)


                      For the Three Month Period   For the Nine Month Period
                              Ended September 30          Ended September 30
                             2010           2009          2010          2009
CASH FLOWS FROM                                                             
 (USED IN) OPERATING                                                        
 ACTIVITIES -                                                               
Net income for the                                                          
 period              $   1,380,841 $      25,878 $   1,494,079 $     215,749
Items not affecting                                                         
 cash                                                                       
  Amortization              21,474        15,770        79,053        83,885
  Loss on disposal                                                          
   of equipment                  -             -        15,308             -
  Issuance of equity                                                        
   instruments for                                                          
   services rendered             -             -         4,000             -
  Stock-based                                                               
   compensation             66,689             -       118,079             -
  Change in non-cash                                                        
   operating asset                                                          
   and liabilities          39,974        65,698     (535,908)     (322,815)
                    --------------------------------------------------------
CASH FLOWS (USED IN)                                                        
 OPERATING                                                                  
 ACTIVITIES              1,508,978       107,346     1,174,611      (23,181)
                    --------------------------------------------------------

CASH FLOWS FROM                                                             
 (USED IN) INVESTING                                                        
 ACTIVITIES -                                                               

  Additions to                                                              
   property, plant                                                          
   and equipment          (28,052)      (66,899)     (290,194)     (112,776)
  Increase to other                                                         
   assets                  (6,000)             -      (16,847)      (26,231)
  Proceeds from sale                                                        
   of equipment                  -             -        12,630             -
                    --------------------------------------------------------
CASH FLOWS USED IN                                                          
 INVESTING                                                                  
 ACTIVITIES               (34,052)      (66,899)     (294,411)     (139,007)
                    --------------------------------------------------------

CASH FLOWS USED IN                                                          
 FINANCING                                                                  
 ACTIVITIES -                                                               
  Stock options                                                             
   exercised                     -             -        69,000             -
  Re-purchase of                                                            
   Common shares for                                                        
   cash                          -       (9,293)             -      (30,584)
                    --------------------------------------------------------
CASH FLOWS FROM                                                             
 (USED IN) FINANCING                                                        
 ACTIVITIES                      -       (9,293)        69,000      (30,584)
                    --------------------------------------------------------

CHANGE IN CASH AND                                                          
 CASH EQUIVALENTS        1,474,926        31,154       949,200     (192,772)

CASH AND CASH                                                               
 EQUIVALENTS,                                                               
  Beginning of                                                              
   period                1,799,486     1,882,040     2,325,212     2,105,966
                    --------------------------------------------------------

CASH AND CASH                                                               
 EQUIVALENTS,                                                               
  End of period      $   3,274,412 $   1,913,194 $   3,274,412 $   1,913,194
                    --------------------------------------------------------


Contacts:
Company Contact
Stellar Pharmaceuticals Inc.
Peter Riehl
President & CEO
(519) 434-1540
corpinfo@stellarpharma.com

Stellar Pharmaceuticals Inc.
Arnold Tenney
Chairman
(705) 445-9505

Investor Contact
Kilmer Lucas Inc.
Stephen Kilmer
President
(905) 690-2400 ext. 21
stephen@kilmerlucas.com

Media Contact
Kilmer Lucas Inc.
Leonard Zehr
Managing Director
(905) 690-2400 ext. 41
len@kilmerlucas.com


Read at BioSpace.com


comments powered by Disqus
   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES