Pyng Medical Corp.
TSX VENTURE : PYT

Pyng Medical Corp.

August 18, 2009 09:00 ET

Pyng Medical Third Quarter Fiscal 2009 Financial Results

Exclusive Prime Vendor Agreement with Major Hospital Distributor Tri-Anim Health Services.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2009) - Pyng Medical Corp. (TSX VENTURE:PYT) released its unaudited third quarter fiscal 2009 results for the period ending June 30, 2009.

An exclusive prime vendor agreement was signed with Tri-anim Health Services, Inc. (Sarnova LLC) to extend the company's products into the hospital market. Tri-anim Health Services will exclusively distribute the FAST1® Intraosseous Infusion System for IO procedures and the TPOD® Pelvic Stabilizer to various hospital facilities within the US.

Pyng Medical's June 2008 asset acquisition of BioCybernetics International products is beginning to pay dividends, both in revenue contribution and our strategic objective to diversify the customer base. The company's focus on building the EMS and Hospital customer base is evidenced by the Q2 to Q3 revenue growth in the MAT® Tourniquet of 96% and a 174% increase in the T-POD® Pelvic Stabilizer binding system. The company's CRIC™ Cricothyrotomy System, having received the European medical CE mark is expected to be shipped in September to Canada, Europe and Asia-Pacific distributors.

The Company's sales for the third quarter of fiscal 2009 were $1,288,743 and sales for year to date were $4,307,905; which was comparable to $4,380,943 for fiscal 2008 year to date. Our flagship product, the FAST1® Intraosseous Infusion System, is the largest selling Sternal IO System with over 197,000 units shipped to-date.

Cost of sales for the third quarter of fiscal 2009 was $388,451 providing a gross margin of $900,292 or 70%. Total operating expenses for the quarter decreased from $922,528 for the third quarter of fiscal 2008 to $879,603 for the third quarter fiscal 2009. On a percentage basis, operating expenses increased from 57% of sales for the quarter ended June 30, 2008 to 68% for the quarter ended June 30, 2009. The Company recorded a net loss before tax of $101,518 for the quarter ending June 30, 2009. This was attributed to the sales of the FAST1® Intraosseous Infusion System which were negatively impacted due to a decreased injury rate for military personnel and civilians.

Full financial results for third quarter fiscal 2009 are available on SEDAR at www.sedar.com.

About Pyng Medical Corp.

Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Creators of the FAST1® Intraosseous Infusion System, Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide. Pyng has received the exclusive 2008 Medical Device Company of the Year Award from Life Sciences British Columbia for its sustained achievements in commercializing the Company's proprietary FAST1®, the only medical device able to provide rapid sternal access for administering drugs and fluids to the heart in seconds. The Company was also selected in the "2007 TSX Venture 50" Top 10 companies in Life Sciences based on solid financial metrics for the year ending December 31, 2006. In June 2008, the Company expanded its product portfolio four-fold by acquiring the trauma assets of California-based Bio Cybernetics International (BCI), including the market leading T-POD® Pelvic Stabilizer, MAT® Tourniquet and CRIC™ Cricothyrotomy System.

Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.

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

Contact Information

  • Pyng Medical Corp.
    Kevin O'Neill
    (604) 303-7964
    Website: www.pyng.com