TSX Venture Exchange: NVC
--Decrease in Tissue Product Revenues Caused by Implementation of New Product Specifications for Key Customer Partly Offset by Strong Growth in Revenues from Contract Manufacturing and Consulting Services--
--Post Quarter-End Financing Raised $4.72 Million to Fund High Potential ReducerTM and TiaraTM Products--
VANCOUVER, Aug. 24, 2011 /PRNewswire/ - Neovasc Inc.(TSXV: NVC), today announced financial results for the three and six months ended June 30, 2011.
"Revenues during the second quarter of 2011 were negatively impacted by a one-time event when a modification to certain specifications of tissue products being provided to one of our key customers caused a temporary suspension in shipments to that customer while we implemented the changes and obtained the necessary approvals. This development had a large impact on product sales during the quarter, which we expect to be non-recurring, and it was partly offset by strong year-over-year revenue growth in our contract manufacturing and consulting services categories. To date, in the current quarter we are seeing a healthy resumption in tissue product sales as the new specifications have been fully implemented," commented Alexei Marko, CEO of Neovasc.
Mr. Marko added, "In the second quarter, we continued to enroll patients in the COSIRA trial designed to further demonstrate the safety and efficacy of our Reducer product for the treatment of refractory angina. In May, at EuroPCR, a leading European cardiovascular conference, we reported positive six-month follow-up data showing a marked improvement in angina symptoms for a patient with severe refractory angina who received the Reducer product in a 'live-case' procedure during the 2010 TCT scientific symposium. During the quarter, we also announced Tiara, our exciting new program to develop a novel solution to treat mitral valve regurgitation (MR), a common, serious and poorly-served condition that requires development of highly specialized devices to safely address the complex anatomy of the mitral apparatus. We believe that Neovasc is ideally positioned to develop new technologies to address MR, and we are encouraged by the promising results of our product development work to date. With the successful completion of a $4.72 million private placement announced last week, we are well positioned to resume growing our revenues and to continue to advance our two high potential development products, which we believe are now well-funded to reach critical milestones in the mid-2012 time frame."
