LONDON, ONTARIO--(Marketwire - August 05, 2009) - Stellar Pharmaceuticals Inc. ("Stellar" or the "Company")(OTCBB: SLXCF) a Canadian pharmaceutical developer and marketer of high quality, cost effective products for select health care markets, today announced that its second quarter revenues increased by 65.8% to $1,074,300 compared to $647,900 for the same period last year and that the Company had a profit of $164,700 for the quarter compared to a loss of $68,000 in the second quarter of 2008. This is the third consecutive quarter that the Company has shown a profit.
For the six month period ended June 30, 2009 Stellar's total revenues increased by 57.1% to $1,846,800 compared to $1,175,300 for the same period in 2008. Canadian sales for NeoVisc and Uracyst were up by 22.2% and 21.9% respectively for the period. International sales increased by 121.4% for this period as the Company's European partners continue to gain traction with both NeoVisc and Uracyst sales. The Company showed a profit of $189,900 for the first half of 2009 compared to a loss of $166,800 over the same period in 2008.
Peter Riehl, Stellar's President and CEO, stated, "This is the strongest second quarter in the Company's history, with revenues up in all markets. We are very pleased to show profitability for the quarter and on a year-to-date basis, this currently puts the Company in a good position for strong operating results for the end of 2009. Besides these encouraging results, it has also been a very active quarter in other areas; Watson Pharmaceuticals received an IDE from the FDA and has now started a pilot clinical trial at a number of centers in the USA, the Company also launched its NeoVisc Single Dose (one injection) in mid June and we are very pleased with initial sales generated. In addition, the Company continues to actively search for new partners to out-license its products to around the world. It is very rewarding to see this growth and escalating business development activities, given the challenging economic times."
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)
As at As at
June 30, 2009 December 31, 2008
--------------- -----------------
(Unaudited) (Audited)
ASSETS
CURRENT
Cash and cash equivalents $ 1,882,040 $ 2,105,966
Accounts receivable, net of allowance
$nil (2008 - $nil) 676,827 549,055
Inventories 651,296 364,551
Taxes recoverable 205,885 212,445
Loan receivable 18,369 18,369
Prepaids, deposits and sundry
receivables 276,634 130,515
--------------- -----------------
3,711,051 3,380,901
PROPERTY, PLANT AND EQUIPMENT 1,248,699 1,270,257
OTHER ASSETS 91,048 65,495
--------------- -----------------
$ 5,050,798 $ 4,716,653
--------------- -----------------
--------------- -----------------
LIABILITIES
CURRENT
Accounts payable $ 183,684 $ 173,812
Accrued liabilities 339,794 186,201
Deferred revenues 3,850 1,749
--------------- -----------------
527,328 361,762
--------------- -----------------
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
23,495,040 Common shares (2008 -
23,702,540) 8,188,486 8,261,403
Nil - Treasury shares (2008 - (147,500)) - (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 (4,425,682) (4,615,553)
--------------- -----------------
4,523,470 4,354,891
--------------- -----------------
$ 5,050,798 $ 4,716,653
--------------- -----------------
--------------- -----------------
STELLAR PHARMACEUTICALS INC.
CONDENSED INTERIM STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS AND DEFICIT
(Expressed in Canadian Dollars)
(Unaudited)
For the Three Month Period For the Six Month Period
Ended June 30 Ended June 30
2009 2008 2009 2008
------------ ------------ ------------ -------------
PRODUCT SALES $ 914,126 $ 645,535 $ 1,458,545 $ 974,991
COST OF PRODUCTS SOLD 333,082 148,937 488,034 260,332
------------ ------------ ------------ ------------
MARGIN ON PRODUCTS
SOLD 581,044 496,598 970,511 714,659
ROYALTY AND LICENSING
REVENUES 160,168 2,400 388,265 200,356
------------ ------------ ------------ ------------
GROSS PROFIT 741,212 498,998 1,358,776 915,015
------------ ------------ ------------ ------------
EXPENSES
Selling, general and
administrative 562,941 551,893 1,140,996 1,042,885
Research and
development 1,803 4,424 7,411 58,242
Amortization
(non-manufacturing
property, plant and
equipment) 13,703 30,044 27,401 60,426
------------ ------------ ------------ ------------
578,447 586,361 1,175,808 1,130,269
------------ ------------ ------------ ------------
INCOME (LOSS) FROM
OPERATIONS 162,765 (87,363) 182,968 (215,254)
INTEREST AND OTHER
INCOME 1,929 19,349 6,903 48,423
------------ ------------ ------------ ------------
NET INCOME (LOSS) AND
COMPREHENSIVE
INCOME (LOSS) FOR THE
PERIOD 164,694 (68,014) 189,871 (166,831)
DEFICIT, beginning of
period (4,590,376) (4,675,438) (4,615,553) (4,576,621)
Effect of repurchase
and cancellation of
Common Shares - (2,933) - (2,933)
DEFICIT, end of
period $(4,425,682) $ (4,746,385) $ (4,425,682) $ (4,746,385)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
EARNINGS (LOSS)
PER SHARE $ 0.01 $ (0.00) $ 0.01 $ (0.01)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING 23,495,040 23,755,759 23,816,387 23,788,919
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
STELLAR PHARMACEUTICALS INC.
CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Expressed in Canadian Dollars)
(Unaudited)
For the Three Month Period For the Six Month Period
Ended June 30 Ended June 30
2009 2008 2009 2008
------------ ------------ ------------- ------------
CASH FLOWS USED IN
OPERATING
ACTIVITIES -
Net income (loss) for
the period $ 164,694 $ (68,014) $ 189,871 $ (166,831)
Items not affecting
cash
Amortization 33,117 30,044 68,112 60,426
Unrealized foreign
exchange (gain)
loss 19,128 (7,912) 20,523 2,317
Issuance of equity
instruments for
services rendered - 7,538 - 13,125
Change in non-cash
operating asset
and liabilities (593,295) 2,788 (390,251) (109,397)
------------ ------------ ------------- ------------
CASH FLOWS USED IN
OPERATING
ACTIVITIES (376,356) (35,556) (111,745) (200,360)
------------ ------------ ------------- ------------
CASH FLOWS USED IN
INVESTING
ACTIVITIES -
Additions to
property, plant
and equipment (43,938) (177,971) (44,135) (193,877)
Increase to other
assets (19,274) - (26,231) (6,063)
------------ ------------ ------------- ------------
CASH FLOWS USED IN
INVESTING
ACTIVITIES (63,212) (177,971) (70,366) (199,940)
------------ ------------ ------------- ------------
CASH FLOWS USED IN
FINANCING
ACTIVITIES -
Repurchase of common
shares for cash - (43,655) (21,292) (43,655)
------------ ------------ ------------- ------------
CASH FLOWS USED IN
FINANCING
ACTIVITIES - (43,655) (21,292) (43,655)
------------ ------------ ------------- ------------
EFFECT OF EXCHANGE
RATES ON CASH HELD
IN FOREIGN CURRENCY (19,127) 7,910 (20,523) (2,315)
------------ ------------ ------------- ------------
CHANGE IN CASH AND
CASH EQUIVALENTS (458,695) (249,272) (223,926) (446,270)
CASH AND CASH
EQUIVALENTS,
Beginning of period 2,340,735 3,014,128 2,105,966 3,211,126
------------ ------------ ------------- ------------
CASH AND CASH
EQUIVALENTS,
End of period $ 1,882,040 $ 2,764,856 $ 1,882,040 $ 2,764,856
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
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
