Innovotech Inc.

Innovotech Inc.

November 24, 2010 08:00 ET

Innovotech Reports Third Quarter 2010 Financial Results

EDMONTON, ALBERTA--(Marketwire - Nov. 24, 2010) - Innovotech Inc. (TSX VENTURE:IOT), a pioneer in the field of biofilm product development, today announced its unaudited financial and operational results for the three and nine-month periods ended September 30, 2010.


-- Innovotech signs agreement for distribution of bioFILM PA™ test with
LevPharm Ltd. in Israel
-- Contract research revenue for nine-month period up 25% over 2009
-- Agress® field trials show significant anti-fungal activity

"There is a growing awareness with regard to the significant impact Innovotech's bioFILM PA™ test can have on improving patient care and the associated reduction in the cost burden to health care systems" said Dr. James Timourian, Chief Financial Officer. "We anticipate this awareness will continue to grow as we expand our marketing efforts both within Canada and the United States."

On July 27, 2010, Innovotech announced that it had signed an exclusive agreement with LevPharm Ltd. of Israel to market and distribute bioFILM PA™ to hospitals and clinics within Israel. LevPharm is currently in the regulatory approval process required to distribute bioFILM PA™ to hospital and clinics in Israel. It is expected that LevPharm will receive regulatory approval to market and distribute bioFILM PA™ by the end of 2010.

With regard to Agress®, the 2010 season proved to be Innovotech's most aggressive and diverse field season to date. Very positive results were seen in fungal trials, specifically with regard to potatoes, where Agress® showed a synergistic effect when combined with current market fungicides. This is significant in that it demonstrates Agress'® unique anti-fungal activity, in addition to its anti-bacterial capabilities, and provides an alternative fungicide to many market products to which fungi are developing resistance.

Financial Summary

Three-month Three-month Nine-month Nine-month
period ended period ended period ended period ended
September 30, September 30, September 30, September 30,
($) 2010 2009 2010 2009
Revenues 425,051 399,728 1,287,709 989,425
G&A 326,211 262,363 936,943 759,496
R&D 210,923 256,689 556,481 657,696
Net loss (240,998) (358,746) (732,908) (1,013,566)
Share Price - - $0.55 $0.90
Cash - - 935,513 1,485,080

About Innovotech Inc.:

Innovotech Inc. is a pioneer in the field of biofilm product development, focused on providing innovative and practical solutions to medical, agricultural and industrial problems caused by microbial biofilms. Biofilms are responsible for a host of diseases both in human health and agriculture due to their inherent resistance to existing antibiotics and disinfectants. There are currently no antibiotics, disinfectants, diagnostics or regulatory standards designed specifically for biofilm-forming organisms.

Innovotech currently has one commercial product, bioFILM PA™, and one product, Agress®, in advanced stages of development. bioFILM PA™ is the first diagnostic kit to assist physicians in the selection of the most effective combination antibiotic treatment of patients with biofilm-based chronic lung infections and Agress® is a unique, environmentally friendly seed treatment and plant spray designed to protect crops against both bacterial and fungal infections.

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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