MISSISSAUGA, ON, March 30, 2012 /PRNewswire/ - Mr. Brian Pedlar, President and CEO of Covalon
Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an
advanced medical technologies company, is pleased to provide the
following update.
"Covalon is progressing well on its plan to
transform into a market driven medical products company.
During our first fiscal 2012 quarter ended December 31, 2011, we continued to build on our
progress in executing on our transformation plan in three key
areas: expanding wound care sales, establishing international
distribution networks and moving new products through the
regulatory clearance process. While these changes had only a modest
impact on the financial operating results for our first quarter, we
are confident that the transformation underway at Covalon will
positively impact fiscal 2012 and beyond.
During the quarter ended December 31, 2011, Covalon recognized modest
revenue from shipments to five new wound care distribution
partners. We expect to sign additional new distribution partners in
the coming months, and expect the shipment volumes of wound care
products to our new distributors to increase both within
North America and internationally
over time. During fiscal 2011, we announced that Covalon
recovered the exclusive worldwide rights to its advanced wound care
products from a major medical company that was only selling in one
limited market segment.
On October 13,
2011, Covalon announced a multi-year, non-exclusive
distribution arrangement with a China-based partner to distribute ColActive®
Plus Ag into the Chinese advanced wound care market. The
agreement calls for a minimum purchase commitment of $12 million of ColActive® Plus Ag over the term
of the agreement with a minimum commitment of $500,000 in the first 12 months following
regulatory approval in China.
Our medical product development pipeline was
strengthened during the quarter, as four new products entered the
final phase of development and regulatory filing. This brings
our total number of products in the process of filing for
regulatory clearances in multiple jurisdictions to nine. Once
cleared, these products will be made available through licensing or
distribution arrangements with existing and new customers.
Covalon continues to engage over sixty new companies in
confidential discussions to evaluate Covalon's products and
technologies for commercial licensing or use in development of new
products.
Finally, Covalon is continuing to evaluate
acquisition opportunities that have the potential to significantly
add capabilities and new market opportunities.
The Company announced financial results for its
first quarter of fiscal 2012 ended December
31, 2011. Revenue for the quarter was $689,167. Revenue was up marginally compared to
the prior year's first quarter, driven mainly by growth in our
medical coating services revenue.
Quarterly operating expenses were $1,149,989 or an increase of $203,410 over the comparative period. Sales
and marketing expenses accounted for the increase year over year
due primarily to investments made to add additional sales and
marketing staff and attendance at sales-related trade shows.
Net loss was $800,054 or $0.01
per share. Covalon continues to have a strong balance sheet with no
long-term debt and over $4,400,000 in
cash, cash equivalents and short-term investments as of
December 31, 2011.
Covalon's transformation is underway and I am
confident the changes made to date and continued operational
improvements will translate into improved financial results in
fiscal 2012 and beyond", stated Brian
Pedlar, Covalon's President and CEO.
About Covalon
Covalon Technologies Ltd. researches, develops
and commercializes new healthcare technologies that help save lives
around the world. Covalon's patented technologies, products and
services address the advanced healthcare needs of medical device
companies, healthcare providers and individual consumers. Covalon's
technologies are used to prevent, detect and manage medical
conditions in specialty areas such as wound care, tissue repair,
infection control, disease management, medical device coatings and
biocompatibility. To learn more about Covalon, visit our website at
www.covalon.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains forward-looking statements which
reflect the Company's current expectations regarding future events.
The forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate", "plan,
"estimate", "expect", "intend" and statements that an event or
result "may", "will", "should", "could" or "might" occur or be
achieved and other similar expressions. These forward-looking
statements involve risk and uncertainties, including the difficulty
in predicting product approvals, acceptance of and demands for new
products, the impact of the products and pricing strategies of
competitors, delays in developing and launching new products, the
regulatory environment, fluctuations in operating results and other
risks, any of which could cause results, performance, or
achievements to differ materially from the results discussed or
implied in the forward-looking statements. Many risks are inherent
in the industry; others are more specific to the Company. Investors
should consult the Company's ongoing quarterly filings for
additional information on risks and uncertainties relating to these
forward-looking statements. Investors should not place undue
reliance on any forward-looking statements. The Company assumes no
obligation to update or alter any forward-looking statements
whether as a result of new information, further events or
otherwise.
SOURCE Covalon Technologies Ltd.