LONDON, ONTARIO--(Marketwire - June 04, 2009) - Stellar Pharmaceuticals Inc. (OTCBB: SLXCF), a Canadian pharmaceutical developer and marketer of high quality, cost effective products for select health care markets, today announced that Stellar finished the period with the highest revenues it has ever reported for a first quarter. Stellar's total revenues for the first quarter increased by 46.5% to $772,500 compared to $527,400 for the same period in 2008. The growth in revenue was strong in all markets, with the more established Canadian market up over 28% and international sales of NeoVisc and Uracyst up 224.4%. International sales have been strengthened with new partners in key European markets for Uracyst. Reorders early in the 2nd quarter from these new licensees is encouraging and increases our expectations for the year.
The strong revenue growth led to Gross profit being up 43.6% for the quarter, which resulted in net income for the period of $25,200 compared to a loss of $98,800 for the same quarter in 2008.
"The results of this quarter and subsequent events leads us to believe that the corporate strategies we have in place are finally showing the results we anticipated." said Peter Riehl, Stellar's President and CEO, " We are very encouraged by these results and look forward to a very productive year ahead."
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.
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.
CONDENSED BALANCE SHEETS
(Expressed in Canadian Dollars)
ASSETS
As at As at
March 31, 2009 December 31, 2008
--------------- ------------------
CURRENT (Unaudited) (Audited)
Cash and cash equivalents $ 2,340,735 $ 2,105,966
Accounts receivable 317,936 549,055
Inventories 215,603 212,445
Loan receivable 18,369 18,369
Prepaid, deposits and sundry receivables 236,799 130,515
--------------- ------------------
3,736,851 3,380,901
PROPERTY, PLANT AND EQUIPMENT 1,235,801 1,270,257
OTHER ASSETS 72,112 65,495
--------------- ------------------
$ 5,044,764 $ 4,716,653
--------------- ------------------
--------------- ------------------
LIABILITIES
CURRENT
Accounts payable $ 415,256 $ 173,812
Accrued liabilities 270,032 186,201
Deferred revenues 700 1,749
--------------- ------------------
685,988 361,762
--------------- ------------------
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
23,555,040 Common shares (2008 -
23,702,540) 8,209,778 8,261,403
(60,000) Treasury shares (2008 -
(147,500)) (21,292) (51,625)
Additional paid-in capital
for cancelled common shares 2,329 2,329
Additional paid-in capital
options - outstanding 35,965 35,965
- expired 722,372 722,372
--------------- ------------------
8,949,152 8,970,444
DEFICIT (4,590,376) (4,615,553)
--------------- ------------------
4,358,776 4,354,891
--------------- ------------------
$ 5,044,764 $ 4,716,653
--------------- ------------------
--------------- ------------------
STELLAR PHARMACEUTICALS INC.
CONDENSED INTERIM STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS) AND DEFICIT
(Expressed in Canadian Dollars)
(Unaudited)
For the Three Month Period
Ended March 31
2009 2008
------------- -------------
(Note 17)
PRODUCT SALES $ 544,419 $ 329,456
COST OF PRODUCTS SOLD 154,955 97,327
------------- -------------
MARGIN ON PRODUCTS SOLD 389,464 232,129
ROYALTY AND LICENSING REVENUES 228,096 197,956
------------- -------------
GROSS PROFIT 617,560 430,085
------------- -------------
EXPENSES
Selling, general and administrative 578,052 490,991
Research and development 5,608 53,818
Amortization (non-manufacturing property,
plant and equipment) 13,698 13,167
------------- -------------
597,358 557,976
------------- -------------
INCOME (LOSS) FROM OPERATIONS 20,202 (127,891)
INTEREST AND OTHER INCOME 4,975 29,074
------------- -------------
NET INCOME (LOSS) AND COMPREHENSIVE
INCOME (LOSS) FOR THE PERIOD 25,177 (98,817)
DEFICIT, beginning of period (4,615,553) (4,576,621)
------------- -------------
DEFICIT, end of period $ (4,590,376) $ (4,675,438)
------------- -------------
------------- -------------
EARNINGS (LOSS) PER SHARE $ 0.00 $ 0.00
------------- -------------
------------- -------------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 23,527,318 23,822,540
------------- -------------
------------- -------------
STELLAR PHARMACEUTICALS INC.
CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Expressed in Canadian Dollars)
(Unaudited)
For the Three Month Period
Ended March 31
2009 2008
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES -
Net income (loss) $ 25,177 $ (98,817)
Items not affecting cash
Amortization 34,995 30,383
Unrealized foreign exchange (gain) loss 1,394 (13,150)
Issuance of equity instruments for
services rendered - 5,589
Change in non-cash operating assets and
liabilities 203,044 (112,184)
------------- -------------
CASH FLOWS PROVIDED BY (USED IN)
OPERATING ACTIVITIES 264,610 (188,179)
CASH FLOWS USED IN INVESTING ACTIVITIES -
Additions to property, plant and equipment (197) (15,906)
Increase in other assets (6,957) (6,063)
------------- -------------
CASH FLOWS USED IN INVESTING ACTIVITIES (7,154) (21,969)
------------- -------------
CASH FLOWS USED IN FINANCING ACTIVITIES -
Repurchase of common shares for cash (21,292) -
------------- -------------
CASH FLOWS USED IN INVESTING ACTIVITIES (21,292) -
------------- -------------
EFFECT OF EXCHANGE RATES ON CASH HELD IN
FOREIGN CURRENCY (1,395) 13,150
------------- -------------
CHANGE IN CASH AND CASH EQUIVALENTS 234,769 (196,998)
CASH AND CASH EQUIVALENTS, beginning of
period 2,105,966 3,211,126
------------- -------------
CASH AND CASH EQUIVALENTS, end of period $ 2,340,735 $ 3,014,128
------------- -------------
------------- -------------
Contacts:
Stellar Pharmaceuticals Inc.
Peter Riehl
President & CEO
(800) 639-0643 or (519) 434-1540
Corpinfo@StellarPharma.com
Stellar Pharmaceuticals Inc.
Arnold Tenney
(416) 587-3200
