Orbus Pharma Inc.

Orbus Pharma Inc.

March 18, 2005 16:21 ET

Orbus Pharma Inc. Reports 2004 Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ORBUS PHARMA INC.

TSX SYMBOL: ORB

MARCH 18, 2005 - 16:21 ET

Orbus Pharma Inc. Reports 2004 Results

TORONTO, ONTARIO--(CCNMatthews - March 18, 2005) - Orbus Pharma Inc.
(TSX:ORB):

(All amounts in thousands of Canadian dollars, except per share data)

Orbus Pharma Inc. reported that the net loss for the year ended December
31, 2004 was $5,266 ($0.17 per share) compared to net earnings of $43
($0.00 per share) in 2003. The Company incurred a net loss for the year
from continuing operations of $5,196 ($3,668 loss in 2003) and a net
loss for the year from discontinued operations of $70 ($3,711 gain in
2003). The net loss for the fourth quarter was $2,239 ($0.07 per share)
compared to net earnings of $2,349 ($0.08 per share) in 2003. The
Company incurred a net loss for the quarter from continuing operations
of $2,235 ($1,135 loss in 2003) and a net loss for the quarter from
discontinued operations of $4 ($3,484 earnings in 2003).



------------------------------------------------------------------------
Three Months Twelve Months
Ended Ended
December 31 December 31
------------------------------------------------------------------------
(thousands of dollars
except per share data) 2004 2003 2004 2003
------------------------------------------------------------------------
Continuing operations
Revenues $ (71) $ 571 $ 3,199 $ 2,012
Net loss (2,235) (1,135) (5,196) (3,668)
Net loss per share (0.07) (0.04) (0.17) (0.13)

Discontinued operations
Net earnings (loss) (4) 3,484 (70) 3,711
Net earnings (loss) - per share 0.00 0.12 0.00 0.13

Cash provided by (used in)
Continuing operations (421) (680) (3,582) (2,173)
Discontinued operations 3 (27) (317) 545
Investing activities (256) 5,267 (2,711) 3,672
Financing activities 5,233 2,486 5,068 4,095
------------------------------------------------------------------------


Revenues from continuing operations increased 59% to $3,199 in 2004 from
$2,012 in 2003. The increase reflects the Company's expansion into
Central America (revenues of $1,486), sales of two brand name products
acquired from Merck Frosst Canada & Co. (revenues of $568) and the
commencement of contract manufacturing (revenues of $542).
Administrative and selling expenses increased to $2,410 from $2,039 in
2003 and are mainly attributable to higher staff levels. Research and
development expenses increased to $994 from $403 in 2003 reflecting the
Company's investment in five generic drug development projects.
Amortization of property, plant and equipment increased to $619 (from
$441 in 2003) reflecting a full year of operations at the Markham
manufacturing plant which commenced operations in April 2003. During the
fourth quarter of 2004, the Company recorded an adjustment to revenues
of $456 in order to comply with foreign government regulations. The
Company is investigating alternatives to recover these adjustments which
will be recognized if and when received in the future.

In October 2003, Orbus Pharma Inc. entered into an agreement to sell its
25% interest in ASMA for $6,000, plus a $500 final dividend. The
transaction closed on December 29, 2003 and as a result, the Malaysian
operation's financial results have been treated as discontinued
operations. In 2004, the net loss from these discontinued operations was
$13 reflecting the continuing efforts to wind-up the Company's Malaysian
holding company.

Cash used in continuing operations and working capital was $3,582
compared to $2,173 in 2003 reflecting the early stage of development of
Orbus Pharma Inc. During 2004, the Company spent $1,841 acquiring
product rights and $883 acquiring property, plant and equipment.
Financing activities provided Orbus with $5,068 which is largely
attributable to the issuance of convertible debentures in December 2004.
The Company's continuing operations had cash of $7,163 on December 31,
2004 ($8,724 at December 31, 2003).

Orbus Pharma Inc., listed on The Toronto and Frankfurt Stock Exchanges
under the symbols ORB and OBP respectively, pursues a strategy of
generating revenue through the development of drug delivery systems and
manufacture of off-patent pharmaceuticals, capitalizing on its ability
to support the development and commercialization of a range of products
at affordable costs.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Orbus Pharma Inc.
    Denis C. Arsenault, C.A.
    VP Finance & Chief Financial Officer
    (905) 943-9444
    or
    Orbus Pharma Inc.
    Jeffrey W. Renwick
    President & Chief Executive Officer
    (905) 943-9444