Innovotech Inc.

Innovotech Inc.

March 12, 2009 15:53 ET

Innovotech Announces Audited Financial Statements for the Year Ended December 31, 2008

EDMONTON, ALBERTA--(Marketwire - March 12, 2009) - Innovotech Inc. (TSX VENTURE:IOT) today announced its audited financial and operational results for the year ended December 31, 2008.


- Key development milestones met for healthcare and agricultural products.

- Planned higher R&D expenditure and weaker demand for contract research services in last quarter result in an increased net loss for the year.

- Strong capital position to finance commercialization of two lead products.

"Budgeted R&D expenses increased significantly in 2008 as Innovotech successfully achieved milestones for the commercialization of its lead products" said Dr. James Timourian, Chief Financial Officer. "Although weaker demand for contract research services in the final quarter of 2008 combined with the planned R&D expenses increased the net loss over 2007, Innovotech is in a strong financial position to support the final stages needed to bring two significant products, bioFILM PA™ (for human health) and Agress™ (for agriculture) to market."

bioFILM PA™ entered an important post-market evaluation by the Cystic Fibrosis (CF) clinics of the Hospital for Sick Children and St. Michael's Hospital in Toronto. This milestone was followed closely by an introductory trial of bioFILM PA™ at 12 Canadian CF clinics representing over 50% of the Canadian CF population.

Agress™ has captured the attention of the worldwide agriculture community with several leading multinational companies currently reviewing the Agress™ data package or conducting their own evaluation trials.

Financial Summary

Year ended Year ended
December 31, 2008, December 31, 2007,
$ $
Revenues 1,164,035 1,364,780
G&A 909,588 814,654
R&D 708,007 437,233
Net Loss (942,141) (120,644)
Share Price (TSX-V symbol - IOT) 0.84 0.87
Cash Position 2,120,859 1,900,287

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. They have been implicated in a host of devastating infections in agriculture, human health and industry. No diagnostics or antibiotics are currently approved for use in infections involving biofilms.

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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