Spectral announces third quarter 2008 results

About this update from Spectral Medical Inc

[{"type":"text","content":"\n\n\n\nTORONTO, Nov. 12 /CNW/ - Spectral Diagnostics Inc. (TSX: SDI) today\nannounced its financial results for the third quarter ended September 30,\n2008.\n\n\n"In September, Spectral took a major first step in the implementation of\nits strategy to align its diagnostic with a therapeutic for the treatment of\nsevere sepsis. We agreed, with Toray Industries Inc., to key terms for the\nexclusive development and commercial rights in the U.S. for Toraymyxin(TM), a\ntherapeutic for the treatment of sepsis that removes endotoxin from the\nbloodstream and has been used safely and effectively in over 70,000 patients\nin Japan and Europe since 1994," said Dr. Paul Walker, President and CEO of\nSpectral. "Combined with our Endotoxin Activity Assay, EAA(TM), the only FDA\ncleared diagnostic for the detection of endotoxin, we believe that this\ntreatment can fulfill a major unmet need for the approximately 100,000\npatients with elevated endotoxin levels that develop severe sepsis or septic\nshock in the U.S. each year."\n\n\nDr. Walker added: "We are in the process of completing our due diligence\nand we plan to meet with the U.S. FDA early in the first quarter to determine\nan appropriate clinical development pathway. Following the FDA's clearance of\nour clinical pathway, we expect to finalize the exclusive license and material\nsupply agreements with Toray in the first quarter of 2009."\n\n\nFinancial Review\n\n\nFor the three months ended September 30, 2008, Spectral reported sales of\n$701,000 compared to $739,000 for the corresponding period in 2007. For the\nnine months ended September 30, 2008, the Company reported sales of\n$2,150,000, compared to sales of $2,318,000 for the same period last year.\nSales of the Company's EAA(TM) diagnostic increased significantly, but the\nimprovement was offset by lower royalty revenues. Certain pre-established\nroyalty plateaus were reached in 2007, resulting in a reduction of $466,000 in\nrelated revenues for the first nine months of 2008. In future years, this\ntemporary decrease should be offset as revenues from a new license agreement,\nwhich was signed in late 2007, start to be realized.\n\n\nSelling, general and administrative expenses for the three months ended\nSeptember 30, 2008 were $729,000, compared to $799,000 for the corresponding\nperiod in 2007. ...

More updates from Spectral Medical Inc