QUEBEC–(BUSINESS WIRE)–Devonian Health Group Inc. (“Devonian” or the “Corporation”)
(TSXv: GSD), a clinical stage botanical pharmaceutical corporation
focused on developing a unique portfolio of botanical prescription drugs
and cosmeceutical products, today reported key results from operations
for the quarter ended January 31, 2019.
Financial Highlights for the quarter ended January 31, 2019
-
For the three-month period ending January 31, 2019, the Corporation
recorded revenues of $3,354,684, amounting to $5,317,215 for the
six-month period ending on the same date. The Corporation’s revenues
are generated by the distribution of two pharmaceutical products,
Cleo-35® and Pantoprazole Magnesium, through its subsidiary Altius
Healthcare. For the same periods in the prior year, the Corporation
recorded no income. -
During the quarter ending January 31, 2019, Research and Development
expenses amounted to $95,240, and $316,313 for the six-month period
ending the same date. These expenses are mainly attributable to the
costs incurred for the clinical trial on Adult Atopic Dermatitis, the
costs related to patents, as well as the related payroll assigned to
this sector. Research and Development expenses of $277,276 and
$533,705 were respectively incurred for the same periods in 2018. The
decrease, compared to the corresponding 2018 periods is mainly due to
the Research and Development tax credits recorded for a total of
$191,773 in January 2019, as well as a reduction in extraction
activities compared to 2018. -
For the three-month period ending January 31, 2019, the net loss
amounted to $399,220 ($ 0.006 per share) and $1,055,805 ($ 0.016 per
share) for the six-month period ending on the same date. For the same
comparative periods ending January 31, 2018, the Corporation realized
a net loss of $783,608 ($ 0.013 per share) and $1,427,486 ($0.024 per
share). This increase in net income is mainly attributed to revenues
from Distribution and lower Research and Development expenses,
partially offset by higher General and Administrative expenses and
Financial expenses incurred during the period ending January 31, 2019.
“We are very pleased with the financial results of our Commercial
Division, Altius Healthcare Inc. Devonian acquired Altius on February 1st,
2018, which includes the revenues from its existing product portfolio,
namely Pantoprazole magnesium and Cléo-35®. Altius’ margins are in line
with management expectations and partially offset some R&D expenses.’’
said Dr Andre P. Boulet, President and CEO of Devonian.
|
SELECTED QUARTERLY FINANCIAL INFORMATION (Unaudited Financial Statements) |
||||||||
| Quarter Ended | ||||||||
|
January 31
2019 |
January 31
2018 |
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| $ | $ | |||||||
| Revenues | 3,354,684 | —- | ||||||
| Net loss | (399,200) | (783,608) | ||||||
| Basic loss per share | (0.006) | (0.021) | ||||||
| Diluted loss per share | (0.006) | (0.013) | ||||||
- All amounts referenced herein are in Canadian dollars.
- Unaudited financials for Q2-2019 can be found on SEDAR.
About Devonian
Devonian Health Group Inc. is a late stage botanical pharmaceutical
corporation with novel therapeutic approaches to targeting unmet medical
needs. Devonian’s core strategy is to develop prescription botanical
drugs from plant materials and algae for the treatment of
inflammatory-autoimmune diseases including but not limited to ulcerative
colitis and atopic dermatitis. Based on a foundation of over 15 years of
research, Devonian’s focus is further supported by a US-FDA set of
regulatory guidelines favouring a more efficient drug development
pathway for prescription botanical drug products over those of
traditional prescription medicines. Devonian is also involved in the
development of high-value cosmeceutical products leveraging the same
proprietary approach employed with their pharmaceutical offerings. Devonian
Health Group Inc. was incorporated in 2013 and is headquartered in
Québec, Canada where it owns a state-of-the art extraction facility with
full traceability ‘from the seed to the pill’. Acquired in 2018, Altius
Healthcare Inc., its commercialization partner, brings opportunities for
further diversification and growth potential. Devonian is traded
publicly on the TSX Exchange (TSXv: GSD).
For more information, visit www.groupedevonian.com
About Altius Healthcare Inc.
Based in Concord, Ontario, Altius Healthcare is a specialty
pharmaceutical company with a primary focus of acquiring and
in-licensing safe and innovative medicines and healthcare products
designed to help people of all ages live healthier lives. Altius then
leverages its expertise in the commercialisation activities required to
successfully launch and distribute these medicines in Canada. The team’s
diverse experience and expertise draws from nearly 40 years of
producing, importing, marketing and distributing branded and generic
medicines.
For more information, visit www.altiushealthcare.ca
Forward Looking Statements
This press release contains forward-looking statements about
Devonian’s objectives, strategies and businesses that involve risks and
uncertainties. These statements are “forward-looking” because they are
based on our current expectations about the markets we operate in and on
various estimates and assumptions. Actual events or results may differ
materially from those anticipated in these forward-looking statements if
known or unknown risks affect our business, or if our estimates or
assumptions turn out to be inaccurate. Such risks and assumptions
include, but are not limited to, Devonian’s ability to develop,
manufacture, and successfully commercialize value-added pharmaceutical
and dermo-cosmeceutical products, the availability of funds and
resources to pursue R&D projects, the successful and timely completion
of clinical studies, the ability of Devonian to take advantage of
business opportunities in the pharmaceutical and dermo-cosmeceutical
industries, uncertainties related to the regulatory process and general
changes in economic conditions. You will find a more detailed assessment
of the risks that could cause actual events or results to materially
differ from our current expectations in Devonian’s prospectus dated
April 21, 2017 under the heading “Risk Factors” related to Devonian’s
business. As a result, we cannot guarantee that any forward-looking
statement will materialize. We assume no obligation to update any
forward-looking statement even if new information becomes available, as
a result of future events or for any other reason, unless required by
applicable securities laws and regulations.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Contacts
Dr André P. Boulet, PhD
President and Chief Executive
Officer
Devonian Health Group Inc.
Telephone:
(514) 248-7509
Email: apboulet@groupedevonian.com