Orbus Pharma Inc.

Orbus Pharma Inc.

November 04, 2005 17:49 ET

Orbus Pharma Inc. Reports Third Quarter 2005 Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 4, 2005) -

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

Orbus Pharma Inc. (TSX:ORB) reported that the net loss for the first nine months of 2005 was $5,091 ($0.17 per share) compared to $3,027 ($0.10 per share) in 2004.

Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Continuing operations
Revenues $ 1,289 $ 878 $ 2,601 $ 3,270
Net loss (1,840) (1,137) (5,091) (3,027)
Net loss per share (0.06) (0.04) (0.17) (0.10)

Cash provided by (used in)
Continuing operations (1,153) (1,006) (3,306) (3,161)
Discontinued operations (5) (51) (24) (320)
Investing activities (22) (255) (256) (2,455)
Financing activities 389 (65) 333 (165)

The third quarter 2005 report to shareholders including management's discussion and analysis of financial condition and results of operations is available on-line at www.sedar.com.

For the nine month period ended September 30, 2005, consolidated revenues decreased to $2,601 in 2005 from $3,270 in 2004. The decrease is mainly attributable to lower volume of sales in Central America. Revenue from manufacturing activities continues to grow representing $1,074 of 2005 revenues (2004 - $257).

At September 30, 2005, the Company's continuing operations had cash of $3,910 compared to $7,163 on December 31, 2004. In October 2005, the Company sold one of its product lines. The contingent nature of the consideration has resulted in a writedown of $494. Should certain conditions of the sale be met the company will recognize revenue $360 in 2006 and $180 thereafter.

The Company's six major generic drug development projects are progressing well. To date, two supply agreements have been signed in connection with cefuroxime axetil. Other supply agreements are expected to be signed and final market approval was received in November 2005. Sales are expected to commence in mid 2006. A new co-development agreement was signed with a European partner on the Metoprolol extended release generic drug development.

Forward looking statements

Certain statements in this disclosure are "forward-looking statements", which reflect management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Many factors could cause results to differ materially from the results discussed in the forward-looking statements, including risks related to dependence on key suppliers, economic conditions, competition, regulatory change, foreign exchange rates, and interest rates, among others. Although the forward-looking statements are based on what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements.

Orbus Pharma Inc., listed on The Toronto Stock Exchange under the symbol ORB, pursues a strategy of generating revenue through the licensing of generic drug developments as well as the manufacturing and selling of pharmaceutical products.

Contact Information

  • Orbus Pharma Inc.
    Denis C. Arsenault
    V.P. Finance & Chief Financial Officer
    (905) 943-9444
    Orbus Pharma Inc.
    Jeffrey W. Renwick
    President & Chief Executive Officer
    (905) 943-9444