Innovotech Inc.

Innovotech Inc.

November 25, 2009 06:00 ET

Innovotech Reports Third Quarter 2009 Financial Results

EDMONTON, ALBERTA--(Marketwire - Nov. 25, 2009) - Innovotech Inc. (TSX VENTURE:IOT) today announced its unaudited financial and operational results for the three and nine month periods ended September 30, 2009.


- Substantial Contract Research revenue increase over third quarter 2008.

- Positive clinical results for bioFILM PA™ will assist market introduction of the kit. The company expects first product sales in the fourth quarter 2009.

- Agricultural biocide product Agress™ again demonstrates its effectiveness in a growing number of applications.

"The strong revenue results in Contract Research have enabled the Company to continue and increase its spending on marketing and development efforts as it brings its two lead products, bioFILM PA in Human Health and Agress in Agriculture, to market. The Company has done this while maintaining adequate cash reserves" says Dr. James Timourian, Chief Financial Officer. "In July the Company presented positive clinical outcome data on the use of the bioFILM PA test kit in clinics in Edmonton and Innovotech is now working to make the test kit easily available for Cystic Fibrosis patients across Canada. The results of field tests with Agress exceeded expectations as more applications are being found for this crop treatment product. Agress is environmentally friendly, cost effective, and is compatible with current products."

Financial Summary

Three-month Three-month Nine-month Nine-month
period ended 30 period ended 30 period ended 30 period ended 30
($) September 2009 September 2008 September 2009 September 2009
Revenues 399,728 247,890 989,425 966,165
G&A 262,363 232,514 759,496 678,330
R&D 256,689 235,731 657,696 503,512
Net Income
(loss) (358,746)(i) (339,258) (1,013,566) (652,869)
Cash-on-hand 1,485,080 2,014,900

(i) Includes a non-cash entry for options ($95,823) to key employees related
to the corporate relocation to Edmonton.

About Innovotech Inc:

Innovotech is a product development company focusing on the development of solutions to medical, agricultural and industrial problems caused by microbial biofilms. Biofilms are protected communities of microorganisms which are very common and very difficult to treat due to their inherent resistance. The company currently has two products in advanced stages of development: bioFILM PA is a diagnostic kit which assists physicians in the selection of the most effective antibiotic treatment of patients with chronic lung infections. Agress(tm) is a novel seed treatment product that protects seeds during the critical germination and emergence stage from bacterial and fungal infection.

This document may contain forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company's reliance on a small number of customers including government organizations; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defense; the Company's exposure to lawsuits and other matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should management's assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly make or update any forward-looking statements, except as required by applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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