MISSISSAUGA, ON, Aug. 28, 2012 /CNW/ - 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.
"We continue to expand our distribution channel
in the United States, Middle East and Asia. During the nine months ended
June 30, 2012, Covalon signed new
distribution partners for wound care and antimicrobial product and
moved new products through the regulatory clearance process.
On May 15, 2012
Covalon reached a significant milestone with the announcement of
United States Food and Drug Administration ("FDA") clearance of IV
Clear, the Company's breakthrough antimicrobial silicone adhesive
film dressing designed for securing vascular intravenous access
devices.
On August 21,
2012, Covalon announced FDA clearance of SurgiClear™
antimicrobial silicone adhesive film dressing designed to cover and
protect wound sites and wound closure devices, as well as secure
other primary dressings to a patient's skin.
Both dressings are major clinical achievements
because of their proven ability to kill over 99.99% of bacteria
that contact the wound dressings antimicrobial silicone adhesive
and they allow clinicians to monitor wounds through their clear
waterproof film so patients can resume normal activity without fear
of contamination or damage to a wound or insertion site.
During the quarter ended June 30, 2012, Covalon presented its products and
technology at four trade shows and introduced five new wound care
and antimicrobial products. Covalon has secured distribution
relationships with two new partners in the Middle East, one new partner in Asia and four new partners in the United States. The Company expects to
announce in the coming months a number of new distribution
relationships as a result of our successes at the trade shows
attended this past quarter.
During the nine months ended June 30, 2012, Covalon recognized modest revenue
from shipments to over 15 new and recurring wound care distribution
partners compared to just two in the first nine months of the
previous year. 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.
We continue to see very promising progress in
developing a profitable distribution network and I am confident
that these improvements will translate into improved financial
results in the coming quarters and beyond", stated Brian Pedlar, Covalon's President and CEO.
The Company announced financial results for its
third quarter of fiscal 2012 ended June 30,
2012. Revenue for the quarter was $1,078,564, a substantial increase compared to
the prior year's third quarter, driven by increased sales of the
Company's wound care product ColActive Plus and medical coating
products and services. Sales of IV Clear and SurgiClear are
expected to begin in the Company's next fiscal quarter.
Quarterly operating expenses were $1,303,993 or an increase of $3,896 over the comparative period. The
Company continues to invest in sales and marketing activities
including adding additional sales and marketing staff and
attendance at sales-related trade shows compared to last
year. Net loss was $732,308 or
$0.01 per share. Covalon continues to
have no long-term debt and over $2,100,000 in cash, cash equivalents and
short-term investments as of June 30,
2012.
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.