Westaim announces 2005 second quarter results

CALGARY, Aug. 4 /CNW/ - The Westaim Corporation announced today that for
the second quarter ended June 30, 2005, it recorded a net loss of
$10.2 million or 11 cents per share compared to a net loss of $13.1 million,
or 17 cents per share in the same quarter last year. The company reported
revenues of $5.7 million in the second quarter of 2005 compared to
$4.8 million in the same period last year reflecting continued success in the
wound care division of NUCRYST Pharmaceuticals.
For the six months ended June 30, 2005, the company posted revenues of
$10.7 million and a net loss of $7.7 million, or 8 cents per share. For the
same period last year, Westaim had revenues of $15.2 million and a net loss of
$12.1 million, or 15 cents per share. In the first six months of 2004, NUCRYST
received a US$5-million milestone payment from Smith & Nephew plc.
At June 30, 2005, Westaim had $84.7 million in cash and short-term
investments.
"In the first half of 2005, Westaim continued to aggressively move
forward with our business strategies for NUCRYST Pharmaceuticals and iFire
Technology as we prepare for the next stages of commercialization in each
subsidiary," said Barry M. Heck, President and CEO of Westaim. "The second
quarter of 2005 was the highest quarter for sales of Acticoat(TM) dressings to
customers since the product's introduction in 1998. We are pleased to report
that sales to customers are growing by approximately 30 per cent year over
year. We anticipate further progress in the second half of 2005 with iFire's
pilot plant going online and NUCRYST preparing for a larger Phase 2 study of
its atopic dermatitis drug, NPI 32101."

NUCRYST update:
In the second quarter, together with Smith & Nephew plc, NUCRYST launched
Acticoat(TM) Moisture Control. It was officially launched at the Symposium on
Advance Wound Care Convention on April 22, 2005. Acticoat(TM) Moisture Control
is a new foam dressing that will be used for treating heavily exudating wounds
or for wounds that require moisture to be added. Foam and moisture control
dressings represent a significant product area in the serious wound care
market. NUCRYST is the exclusive manufacturer of the Acticoat(TM) family of
dressings. NUCRYST also conducted two small clinical trials for its atopic
dermatitis drug candidate, NPI 32101: a pharmacokinetics trial to study the
body's absorption of the active pharmaceutical ingredient, and a tolerance
study in children. Results are expected in the third quarter. Information from
the two studies will be used in the design of a larger Phase 2b human clinical
trial, which is expected to begin in late 2005.
In June, NUCRYST commissioned a $7-million manufacturing facility
expansion in Fort Saskatchewan, Alberta, to meet the rapidly growing demand
for the Acticoat(TM) family of dressings. The production facility was expanded
to 70,000 square feet and is anticipated to increase capacity by 65 per cent.
The facility was completed ahead of schedule and is now producing Acticoat(TM)
products.
NUCRYST recently appointed David C. McDowell Vice President, Operations.
Mr. McDowell will be based in Fort Saskatchewan and brings more than 25 years
experience in pharmaceutical, medical devices and consumer packaged goods
production. Prior to joining NUCRYST, he served in senior positions with
Novartis, GlaxoSmithKline and Sterling Winthrop. Most recently, he held the
position of General Manager Sterile Manufacturing, Head Lens Care Products
Global Supply for CIBA Vision, a Novartis company, where he was responsible
for global manufacturing and supply of lens care and ophthalmic products.

iFire update:
iFire Technology has expanded its Toronto-based research and development