EXHIBIT 99.1
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Press Release | Source: Stellar Pharmaceuticals Inc. |
Stellar Pharmaceuticals Announces Record First Quarter Financial Results and Profitability
London, Ontario June 4, 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.
For More Information Please Contact:
Stellar Pharmaceuticals Inc.
Arnold Tenney
Peter Riehl
Or
(416) 587-3200
President & CEO
(800) 639-0643 or (519) 434-154 0
e-mail Corpinfo@StellarPharma.com
STELLAR PHARMACEUTICALS INC.
CONDENSED BALANCE SHEETS
(Expressed in Canadian Dollars)
ASSETS
| | | | | | | | | |
| | As at
March 31,
2009 | | As at
December 31,
2008 | |
| | (Unaudited) | | (Audited) | |
CURRENT | | | | | | | |
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 ACTIVITES | | | 264,610 | | | (188,179 | ) |
| | | | | | | |
CASH FLOWS USED IN INVESTING ACTIVITES - | | | | | | | |
Additions to property, plant and equipment | | | (197 | ) | | (15,906 | ) |
Increase in other assets | | | (6,957 | ) | | (6,063 | ) |
| | | | | | | |
CASH FLOWS USED IN INVESTING ACTIVITES | | | (7,154 | ) | | (21,969 | ) |
| | | | | | | |
CASH FLOWS USED IN FINANCING ACTIVITES - | | | | | | | |
Repurchase of common shares for cash | | | (21,292 | ) | | — | |
| | | | | | | |
CASH FLOWS USED IN INVESTING ACTIVITES | | | (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 | |
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