December 14, 2006 07:30 ET

Polydex Pharmaceuticals Provides Third Quarter Report With Continued Improvement in Sales and Profit

TORONTO--(CCNMatthews - December 14, 2006) - Polydex Pharmaceuticals Limited (NASDAQ: POLXF) reports financial results for its third fiscal quarter, the three-month period ended October 31, 2006.

QUARTER ENDED: October 31, 2006
(Unaudited figures, stated in U.S. dollars)

Quarter ended Quarter ended
10/31/2006 10/31/2005
------------- -------------

Sales $ 1,366,190 $ 1,062,075

Net Income (loss) (147,981) (383,745)

Earnings (loss) per common share - basic (0.05) (0.09)

Earnings (loss) per common share - diluted (0.05) (0.09)

Wtd. avg. common
shares outstanding - basic 3,061,896 3,052,296
- diluted 3,078,155 3,052,296

Third quarter sales have increased 29% over the same period last year and gross profits are up 186%, both increases primarily attributable to pricing increases, rising customer demand, and to the ongoing control of direct costs by Management.

In keeping with Management objectives to meet growing demand for the Company's core products, refurbishment of the facilities in Toronto progressed with the approval of a building permit and the commencement of construction of new drying facilities. These plant upgrades will continue through the fourth quarter and into the next fiscal year, with the spray dryer unit being operational in fiscal 2008. It is anticipated that once the refurbishments are complete and this equipment is operational, the plant will be in a position to potentially increase its production capacity of dried products by 100%.

The Company's lead human pharmaceutical compound is a cellulose sulphate gel being investigated as a microbicide for potential uses in prevention of HIV and other sexually transmitted infections. Ushercell blocks infection by creating a barrier between the pathogen and the cells of the vagina, preventing viruses and bacteria from taking hold after entering the body. It is also highly effective at preventing pregnancies, and has shown to be effective in preventing Human Papilloma Virus (HPV), the most prevalent sexually transmitted infection in the world, and linked to the onset of cervical cancer. Ushercell has demonstrated an excellent safety profile in numerous clinical trials in over a decade of research and development.

During the third quarter, Polydex was recognized for Best Practices in the development of Ushercell and Awarded Frost and Sullivan's 2006 Product of the Year Award. Frost and Sullivan's research analyst, Nivedithaa Gopaalakrishnan, was most impressed by Ushercell's consistent safety profile, declaring, "Ushercell is notable in that it does not lead to any inflammation like many other vaginal products do. Some microbicides based on cytotoxicity have been known to cause problems such as thinning of the vaginal walls that could exert a negative effect on the normal vaginal microbial flora. This could further increase the chances of contracting STDs."

Frost & Sullivan, a global growth consulting company for more than 40 years, provides comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

Polydex's unique support for the development of Ushercell from the U.S. government, CONRAD, various universities and philanthropic organizations such as the Bill and Melinda Gates Foundation was featured in an article in the December 2006 issue of The Scientist, entitled "Getting Your Gates," by Juhi Yajnik. In this article the journalist highlighted Polydex's commitment to humanitarian distribution of Ushercell in developing countries, once it has completed the ongoing Phase III human clinical trials in Africa and India. Polydex retains exclusive worldwide commercial rights to the product but has agreed to make it available at a low profit margin to the public sector to ensure that developing countries have affordable access to a first generation microbicide and can be protected from soaring prices.

On World AIDS Day 2006, George Usher, President and CEO of Polydex, was invited by Nasdaq to participate in a Panel Discussion on AIDS. Following this Panel Discussion, Mr. Usher was interviewed by TheStreet.com and joined in a commemorative Closing Bell Ceremony, broadcast over several networks, including CNBC, CNBC India, KTVU, NDTV (New Delhi), Report on Business (Canada), New Tang Dynasty TV, Bloomberg & Bloomberg Brazil. Mr. Usher said, "It is important that we maintain our focus on the development of Ushercell as a first generation microbicide, as it may very well be the first female-initiated line of action in stemming the tide of this truly devastating pandemic."

Following the promising results from a contraceptive efficacy trial announced earlier this year, Management is looking into methods of advancing Ushercell toward commercial viability as a contraceptive product. Management is also considering ways to advance the further research and development of Ushercell for the potential treatment and prevention of a broad spectrum of indications such as bacterial vaginosis and human papilloma virus.

Polydex Pharmaceuticals Limited, based in Toronto, Ontario, Canada, is engaged in the research, development, manufacture and marketing of biotechnology-based products for the human pharmaceutical market, and also manufactures bulk pharmaceutical intermediates for the worldwide veterinary pharmaceutical industry.

Please visit the Company's website: www.Polydex.com.

Note: This press release may contain forward-looking statements, within the meaning of the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended, regarding Polydex Pharmaceuticals Limited. Actual events or results may differ materially from the Company's expectations, which are subject to a number of known and unknown risks and uncertainties including but not limited to changing market conditions, future actions by the United States Food and Drug Administration or equivalent foreign regulatory authorities as well as results of pending or future clinical trials. Other risk factors discussed in the Company's filings with the United States Securities and Exchange Commission may also affect the actual results achieved by the Company.

Contact Information

  • Investor Relations for Polydex Pharmaceuticals Limited:
    North Arm Capital Services
    Linda Hughes