Advitech Inc.

Advitech Inc.

April 06, 2006 16:00 ET

Advitech Reports its Fourth Quarter and Year-End 2005 Results

QUEBEC CITY, QUEBEC--(CCNMatthews - April 6, 2006) - Advitech Inc. (TSX VENTURE:AVI) announced today its financial results for the fourth quarter and year ended December 31, 2005.


For the fourth quarter ended December 31, 2005, net loss stood at $279,463 or $0.01 per share compared to a net loss of $516,976 or $0.01 per share for the same period in 2004, a decrease of $237,513. Gross research and development expenses were $174,575 during fourth quarter of 2005, compared to $203,404 for the same period last year.

Net loss for fiscal year 2005 amounts to $2,015,008 or $0.04 per share compared to $1,419,411 for fiscal year 2004 or $0.03 per share, an increase of $595,597. Gross research and development expenses were $1,151,750 during fiscal year ended December 31, 2005, compared to $768,516 for the same period last year. This increase is due mainly to expenses incurred for the double-blind, placebo-controlled clinical trial for XP-828L, Company's bioactive ingredient for treating mild-to-moderate psoriasis.

As at December 31 2005, cash and cash equivalents totalled $686,742 compared to $2,628,006 for the same period in 2004, or a decrease of $1,941,264 during this year, which is in line with the Company's expectations.

Selected financial information
Years and quarters ended December 31
(In thousands of dollars, except per share amounts)

Fourth Fourth Year Year
quarter quarter 2005 2004
2005 2004

Financial Results
Total revenues $375.1 $181.7 $847.6 $1,376.0
Operating expenses $654.5 $698.7 $2,862.6 $2,814.1
Research and development
costs, net of tax
credits $130.9 $169.2 $887.1 $478.2
Net loss $(279.4) $(517.0) $(2,015.0) $(1,419.4)
Loss per share basic
and diluted
Before discontinued $(0.01) $(0.01) $(0.04) $(0.03)
Net loss $(0.01) $(0.01) $(0.04) $(0.03)

Selected financial information
As at December 31
(In thousands of dollars, except per share amounts)

Balance Sheet 2005 2004 2003
Cash and cash equivalents $686.7 $2,628.0 $554.7
Other current assets $742.9 $594.0 $1,622.6
Long-term assets $252.1 $270.9 $359.9

Current liabilities $532.3 $448.4 $1,284.0
Long-term liabilities $677.5 $681.3 $778.9
Shareholders' equity $471.9 $2,363.2 $474.3

The fourth quarter financial statements and the fiscal year financial statements as well as the management's discussion and analysis of results of operations and financial condition are available on the Company's web site at the following address:

Commenting the fourth quarter and the 2005 financial results, Renaud Beauchesne, President and Chief Executive Officer of Advitech mentioned: "2005 and more specifically the last quarter was especially important for the Company. Some of the main objectives that were specified in the July 2004 prospectus, such as the extension of our technological platform in a new application and our marketing alliance program for the commercialization of Dermylex™, were both having a deadline in the fourth quarter. The achievement of both objectives helped us ending the year on a positive note."


Market Introduction of Dermylex™ and Commercial Agreements Signed

From the XP-828L platform, the Company has recently introduced its first product, Dermylex™, for the treatment of mild-to-moderate psoriasis. Dermylex™ is a specific and patented combination of bioactive proteins that helps maintain a balanced immune skin response. Dermylex™ efficacy and safety have been proven through rigorously controlled clinical trials that ended during the second quarter. Dermylex™ is the only oral natural product available for treating mild-to-moderate psoriasis.

During the year 2005, the Company continued to look for commercial partners that would best promote Dermylex™ in the market place. To date, Advitech has already signed three partnership agreements in principle for the commercialization and distribution of Dermylex™, in the European, American and Canadian markets. Dermylex™ will be pre-launched in the first semester of 2006. The first agreement in principle was signed with Cothera S.A. for the French market and a second was concluded with PhotoMedex (NASDAQ- PHMD) for the U.S. market. In March 2006, a third agreement in principle was signed with Jamieson Laboratories for the Canadian market, and there are ongoing discussions with other potential partners for Europe and Asia.

The first sales of Dermylex™ were made in the first quarter of 2006 and the Company anticipates that this product can generate or capture an important revenue opportunity on the psoriasis market.


The Company intends to carry out, before the end of the first semester, new interim financing that will allow the Company to pursue the implementation of its business plan and to work on a more important financing round before the end of the third quarter of 2006. The public announcement concerning the signing of three agreements in principle for the commercialization of Dermylex™ is contributing positively to the ongoing financial discussion.


The annual general meeting of the shareholders will be held at 15:00 p.m., on May 3, 2005, at Hotel Times, 6515 Wilfrid-Hamel Blvd., Quebec.

About Advitech

Advitech is a biotechnology company specializing in the development of bioactive ingredients from dairy proteins. Its key focus areas are in the fields of immunology and inflammation. Its main platform, XP-828L, is a growth factor complex aimed at treating psoriasis, inflammatory bowel diseases and other chronic immune-mediated inflammatory diseases (I.M.I.D.). Advitech's common shares are listed on the TSX Venture Exchange under the symbol AVI. The number of common shares outstanding is 54,799,818.

About Dermylex™

Dermylex™ is Advitech's orally administered product for mild to moderate plaque psoriasis. Dermylex™ is based on Advitech's XP-828L, a bioactive ingredient with proven clinical efficacy. On July 5, 2005, the Company reported positive results from its Phase II clinical trial of XP-828L for treating mild to moderate psoriasis. The 112-day, multi-center, double blind, placebo-controlled study, involving 84 patients, confirmed the efficacy and excellent safety profile of XP-828L for treating mild to moderate psoriasis.

This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein.

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

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