MILTON, ONTARIO--(Marketwired - May 14, 2013) - Tribute Pharmaceuticals Canada Inc. (formerly Stellar Pharmaceuticals Inc.) (OTCQB:TBUFF)(OTCBB:TBUFF)(PINKSHEETS:TBUFF) ("Tribute" or "the Company"), a specialty pharmaceutical company with a primary focus on the acquisition, licensing, development and promotion of healthcare products in Canada, today announced financial results for its fiscal 2013 first quarter ending March 31, 2013. In this press release, all dollar amounts are expressed in Canadian currency - unless otherwise noted - and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).
First Quarter 2013 Highlights:
- Revenues increased 18% to $3.4MM in Q1-2013 vs. Q1-2012
- Gross profit up 36% in Q1-2103 vs. Q1-2012
- Tribute's sales force launched Cambia(R) throughout Canada in Q1-2013 to include primary care physicians
- The Company completed a private placement of units of its securities in Q1-2013 for aggregate gross proceeds of approximately US $4.6MM
Total revenue for the three month period ended March 31, 2013 increased by 18.0% to $3,422,200 compared to $2,900,200 in 2012. The underlying increase in sales was primarily attributable to the recent launch of Cambia ® and continued growth of existing products.
Gross profit for the three month period ended March 31, 2013 was $1,675,900, higher by 36.0%, or $443,100 compared to the same period in the prior year. Selling, general and administrative expenses for the three month period ended March 31, 2013 were $2,949,600 compared to $2,019,000 for the same period in 2012. The increase of $930,600 or 46.1% is primarily due to the expanded launch of Cambia ® in Q1 to primary care physicians in Canada.
The net loss after taxes for the three month period ended March 31, 2013 was $2,716,800 compared to a loss of $626,300 for the same period in the prior year. The increase in the net loss of $2,090,500 was primarily due to a significant investment in the expansion of the Company's sales force and marketing expenses related to the launch of Cambia ® and increased promotion with our other promoted products, business development activities and a non-cash expense increase in the warrant liability of $1,317,000, primarily related to the recently completed private placement of aggregate gross proceeds of US$4,545,000 ($4,662,700). This equates to a loss of ($0.06) per share for the year compared to a loss of ($0.02) per share in for the same period in 2012.
Excluding non-operating expenses for the three month period ended March 31, 2013 of $1,428,400 (which includes the non-cash change in warrant liability) net loss from operations was $1,603,200. This compares to the prior year net loss from operations of $883,200.
The Company's cash and cash equivalents position amounted to $2,101,900 at March 31, 2013 compared with $2,283,900 at December 31, 2012. The Company's recent private placement was completed in three tranches for net proceeds to the Company of US$4,231,800 after deducting expenses. Each Unit was issued at a price of US$0.40 and consisted of one common share of the Company and one-half of one Series A common share purchase warrant and one-half of one Series B common share purchase warrant. For further details see the press release dated March 15, 2013.
"We are executing our plan and are now in full launch mode with Cambia ®" said Rob Harris, CEO of Tribute. "We believe Cambia ® has the potential to gain a significant proportion of the $150 million Canadian migraine market. We believe it is the only available prescription non-steroidal anti-inflammatory drug ("NSAID") available with an indication for the acute treatment of migraine attacks with or without aura in adults in Canada." Mr. Harris went on to state, "We are pleased with our results for Q1-2013. Our promoted products including Bezalip SR and Soriatane continue to show good growth in Canada. We are pleased with our business development efforts and feel confident in our ability to bring new products to Canada. Furthermore, we are making good progress on the preparation of the Bezalip SR IND in the US and are still on track to file this with the FDA before the end of the year."
About Tribute Pharmaceuticals Canada Inc .
Tribute is an emerging Canadian specialty pharmaceutical company focused on the acquisition, licensing, development and management of pharmaceutical and healthcare products with its primary focus on the Canadian market.
Tribute markets Cambia ® (diclofenac potassium for oral solution), Bezalip ® SR (bezafibrate), Soriatane ® (acitretin), NeoVisc ® (1.0% sodium hyaluronate solution) Uracyst ® (sodium chondroitin sulfate solution 2%), Collatamp G ® and Gelfoam ® in the Canadian market. Additionally, NeoVisc ® and Uracyst ® are commercially available and are sold globally through various international partnerships.
For further information on Tribute visit the Company's website: www.tributepharma.com .
Tribute Pharmaceuticals' Forward-Looking Statement
This press release contains certain forward-looking statements about Tribute as defined in the Private Securities Litigation Reform Act of 1995, which statements can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "anticipate", "estimate", "predict", "plan" or "continue" or the negative thereof or other variations thereon or comparable terminology referring to future events or results. Forward-looking statements, by their nature, are subject to risks and uncertainties, Tribute's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including general economic conditions, the ability of Tribute to successfully integrate operations, and the timing of expenditures and expansion opportunities, any of which could cause actual results to vary materially from current results or anticipated future results. See Tribute's reports filed with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ materially from results referred to in forward-looking statements. Tribute assumes no obligation to update the information contained in this press release to update forward-looking statements to reflect changed assumptions, the occurrence of anticipated events or changes in future operating results, financial condition or business over time.
Soriatane and Bezalip are registered trademarks and under license from Actavis Group PTC ehf
Cambia is a registered trademark and under license from Nautilus Neurosciences, Inc.
Collatamp G is a registered trademark and under license EUSA Pharma (Europe) Limited.
Gelfoam is a registered trademark of Pharmacia & Upjohn Company LLC, used under license by Pfizer Canada Inc.
For further information on Tribute, visit www.tributepharma.com .
| TRIBUTE PHARMACEUTICALS CANADA INC. | ||||||||
| (formerly Stellar Pharmaceuticals Inc.) | ||||||||
| CONDENSED INTERIM BALANCE SHEETS | ||||||||
| (Expressed in Canadian dollars) | ||||||||
| (Unaudited) | ||||||||
| As at | As at | |||||||
| March 31, | December 31, | |||||||
| ASSETS | 2013 | 2012 | ||||||
| Current: | ||||||||
| Cash and cash equivalents | $ | 2,101,848 | $ | 2,283,868 | ||||
| Accounts receivable, net of allowance | 1,904,697 | 1,205,087 | ||||||
| Inventories | 1,182,915 | 1,000,557 | ||||||
| Taxes recoverable | 289,217 | 261,400 | ||||||
| Loan receivable | 15,814 | 15,814 | ||||||
| Prepaid expenses and other receivables | 161,536 | 118,910 | ||||||
| Total current assets | 5,656,027 | 4,885,636 | ||||||
| Property, Plant and Equipment, net | 1,131,118 | 1,159,375 | ||||||
| Intangible assets, net | 10,620,639 | 10,883,179 | ||||||
| Goodwill | 3,599,077 | 3,599,077 | ||||||
| Debt issuance costs, net | 247,757 | 301,265 | ||||||
| Total assets | $ | 21,254,618 | $ | 20,828,532 | ||||
| LIABILITIES | ||||||||
| Current: | ||||||||
| Accounts payable and accrued liabilities | $ | 3,413,896 | $ | 5,455,664 | ||||
| Current portion of long term debt | 1,332,975 | 1,305,840 | ||||||
| Total current liabilities | 4,746,871 | 6,761,504 | ||||||
| Warrant liability | 3,415,934 | 202,213 | ||||||
| Long term debt | 1,537,664 | 1,815,791 | ||||||
| Deferred tax liability | - | 314,900 | ||||||
| Total liabilities | 9,700,469 | 9,094,408 | ||||||
| Contingencies and commitments | ||||||||
| SHAREHOLDER'S EQUITY | ||||||||
| Capital stock | ||||||||
| AUTHORIZED | ||||||||
| Unlimited non-voting, convertible redeemable and retractable preferred shares with no par value | ||||||||
| Unlimited common shares with no par value | ||||||||
| ISSUED | ||||||||
| Common shares 50,972,542 (2012 - 39,610,042) | 19,952,252 | 17,589,957 | ||||||
| Additional paid-in capital options | 2,042,210 | 1,867,723 | ||||||
| 21,994,462 | 19,457,680 | |||||||
| Deficit | (10,440,313 | ) | (7,723,556 | ) | ||||
| Total shareholders' equity | 11,554,149 | 11,734,124 | ||||||
| Total liabilities and shareholders' equity | $ | 21,254,618 | $ | 20,828,532 | ||||
| TRIBUTE PHARMACEUTICALS CANADA INC. | |||||||
| (formerly Stellar Pharmaceuticals Inc.) | |||||||
| CONDENSED INTERIM BALANCE SHEETS | |||||||
| (Expressed in Canadian dollars) | |||||||
| (Unaudited) | |||||||
| For the Three Month Period | |||||||
| Ended March 31 | |||||||
| 2013 | 2012 | ||||||
| Revenues | |||||||
| Licensed domestic product net sales | $ | 1,893,640 | $ | 1,905,862 | |||
| Other domestic product sales | 1,099,162 | 474,267 | |||||
| International product sales | 331,338 | 520,025 | |||||
| Royalty and licensing revenues | 98,040 | - | |||||
| Total revenues | 3,422,180 | 2,900,154 | |||||
| Cost of sales | |||||||
| Licensor sales and distribution fees | 1,288,479 | 1,346,772 | |||||
| Cost of products sold | 457,763 | 320,592 | |||||
| Gross profit | 1,675,938 | 1,232,790 | |||||
| Expenses | |||||||
| Selling, general and administrative | 2,949,604 | 2,018,957 | |||||
| Amortization of assets (non-manufacturing property, plant and equipment) | 329,572 | 97,037 | |||||
| 3,279,176 | 2,115,994 | ||||||
| (Loss) from operations | (1,603,238 | ) | (883,204 | ) | |||
| Non-operating income (expenses) | |||||||
| Change in warrant liability | (1,317,041 | ) | 2,543 | ||||
| Change in fair value of contingent consideration | - | 79,724 | |||||
| Research and development | - | (1,752 | ) | ||||
| Accretion expense | (24,245 | ) | (20,664 | ) | |||
| Interest expense | (87,858 | ) | - | ||||
| Interest income | 725 | 3,505 | |||||
| Loss and comprehensive loss before tax | (3,031,657 | ) | (819,848 | ) | |||
| Deferred income tax recovery | (314,900 | ) | (193,500 | ) | |||
| Net loss and comprehensive loss for the period | $ | (2,716,757 | ) | $ | (626,348 | ) | |
| Deficit, beginning of period | (7,723,556 | ) | (4,374,590 | ) | |||
| Deficit, end of period | (10,440,313 | ) | (5,000,938 | ) | |||
| Loss per share - Basic and diluted | $ | (0.06 | ) | $ | (0.02 | ) | |
| Weighted average number of common shares outstanding - Basic and diluted | 43,535,459 | 37,829,822 | |||||
| TRIBUTE PHARMACEUTICALS CANADA INC. | |||||||
| (formerly Stellar Pharmaceuticals Inc.) | |||||||
| CONDENSED INTERIM STATEMENT OF CASH FLOWS | |||||||
| (Expressed in Canadian dollars) | |||||||
| (Unaudited) | |||||||
| For the Three Month Period | |||||||
| Ended March 31, | |||||||
| 2013 | 2012 | ||||||
| Cash flows from (used in) operating activities: | |||||||
| Net (loss) | $ | (2,716,757 | ) | (626,348 | ) | ||
| Items not affecting cash: | |||||||
| Deferred income tax (recovery) | (314,900 | ) | (193,500 | ) | |||
| Amortization | 344,305 | 105,824 | |||||
| Change in warrant liability | 1,317,041 | (2,543 | ) | ||||
| Change in fair value of contingent consideration | - | (79,724 | ) | ||||
| Stock-based compensation | 174,487 | 158,543 | |||||
| Accretion expense | 24,245 | 20,664 | |||||
| Change in non-cash operating assets and liabilities | (2,534,179 | ) | (572,976 | ) | |||
| Cash flows from (used in) operating activities | (3,705,758 | ) | (1,190,060 | ) | |||
| Cash flows from (used in) investing activities | |||||||
| Additions to property, plant and equipment | - | (9,356 | ) | ||||
| Payment of contingent liabilities | (460,000 | ) | - | ||||
| Increase in patents and licensing agreements | - | (12,603 | ) | ||||
| Cash flows from (used in) investing activities | (460,000 | ) | (21,959 | ) | |||
| Cash flows from (used in) financing activities | |||||||
| Shares issued | 4,662,700 | - | |||||
| Long term debt repayment | (330,652 | ) | - | ||||
| Share issuance costs | (403,727 | ) | - | ||||
| Cash flows from (used in) financing activities | 3,928,321 | - | |||||
| Change in cash and cash equivalents | (237,437 | ) | (1,212,019 | ) | |||
| Change in cash due to changes in foreign exchanges | 55,417 | - | |||||
| Cash and cash equivalents, beginning of period | 2,283,868 | 2,227,973 | |||||
| Cash and cash equivalents, end of period | $ | 2,101,848 | 1,015,954 | ||||
