HALIFAX, March 31 /CNW/ - MedMira Inc., ("MedMira") (TSX Venture: MIR, NASDAQ: MMIRF), a developer and marketer of rapid diagnostic technology and solutions, today provided a corporate update and reported on the Company's financial results for the three and six month periods ending January 31, 2009.
Corporate Update
In the face of global economic pressures and current market conditions, particularly in US, MedMira has repositioned to pursue growth opportunities aimed at improving the Company's financial position and delivering positive shareholder value. In the second quarter MedMira announced a new outsourced manufacturing strategy to help the Company compete in developing markets.
"While it is not yet evident in our year to date financial results, MedMira is making advancements on our revenue-building initiatives, which will be reflected in future quarters," said Hermes Chan, president and CEO, MedMira Inc. "This quarter saw the completion of a 15-month long search and evaluation for the right outsourced manufacturing partner, which we found in Shenzhen Kang Sheng Bao Bio-Technology Co., Ltd. (KSB). This partnership helps MedMira compete more effectively in high volume, price-driven developing markets such as Africa, Asia, and Latin America."
In addition to outsourced manufacturing, MedMira re-prioritized strategic partnerships as a key initiative in advancing the Company's exposure to global markets and the opportunities that exist within these markets for MedMira's rapid diagnostics.
Mr. Chan continued, "We are intensifying our discussions with strategic partners that can bring us sales in key global markets, as well as contract research and OEM manufacturing opportunities. Momentum continues to build and subsequent to the close of this quarter we signed on both a private label partner for Africa as well as a sales and marketing partner for Latin America, the Caribbean, and the Middle East."
Second Quarter Financial Results
Overall gross margin for the quarter was 57%, compared to 49% last year. Internal and general operating expenses have been decreased to $798 thousand compared to $904 thousand in the same period last year, a reduction of 11.7%.
Product sales in the second quarter were $197 thousand with a net loss for the quarter of $1.2 million or $0.01 per share compared with a net loss of $632 thousand or $0.01 per share in the same period last year.
For the six months ended January 31, 2009 product sales were $575 thousand compared to $854 thousand in the previous year. The net loss for the six month period was $2.9 million or $0.027 per share compared to a loss of $2.1 million or $0.03 per share for the same period last year.
About MedMira
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics. The company's tests provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The company's tests are sold under the Reveal(R), MiraWell(R), MiraCare(TM) and Multiplo(TM) brands in global markets. MedMira's rapid HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit MedMira's website at www.medmira.com.
This news release contains forward-looking statements, which involve risk and uncertainties and reflect the company's current expectation regarding future events. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this statement.
%SEDAR: 00013053E