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