SYS-CON MEDIA Authors: Yeshim Deniz, Doug Masi, Mat Mathews, PR.com Newswire, David Smith

News Feed Item

Pediapharm Announces Fourth Quarter Results

MONTREAL, QUEBEC -- (Marketwired) -- 02/28/14 -- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Pediapharm Inc. (the "Corporation") (TSX VENTURE: PDP) is pleased to announce the filing of its fourth quarter financial results ended December 31, 2013. As a result of the Corporation changing its financial year-end from December 31 to March 31, these are interim financial statements. All dollars amount are expressed in Canadian currency and results are reported in accordance with IFRS accounting principles. Pediapharm reports the following highlights:


--  Total revenues for the twelve-month period ended December 31, 2013
    increased by 61% compared to the same period in 2012, which includes a
    fourth quarter increase of 117% compared to same period in 2012;

--  Operating loss for the twelve-month period ended December 31, 2013
    decreased by $1,639,805 compared to the same period in 2012, which
    includes a fourth quarter decrease of $506,436 compared to same period
    in 2012;

--  On December 27, 2013, the common shares of Pediapharm began to trade on
    the TSX Venture Exchange under the ticker symbol PDP.V following an
    amalgamation transaction with Chelsea Acquisition Corporation;

--  Concurrently, the Corporation successfully completed a round of
    financing with gross proceeds of approximately $7,000,000; and

--  NYDA®, a breakthrough treatment for head lice and its eggs, was a
    major contributor to the revenue growth.

Total revenues for the 3 month-period ended December 31, 2013 increased by 117% to reach $1,237,538 compared to $570,945 in the same period in 2012. NYDA's strong performance in the last quarter, which coincides with one of the 3 peak seasons for head lice infestation, was an important factor contributing to the growth. On October 30, 2013, Pediapharm received the acceptance of NYDA's reimbursement by the Ontario Drug Benefit (ODB), enabling more patients to have access to the product when prescribed.

Total revenues for the twelve-month period ended December 31, 2013 increased to $4,003,807 (2012 - $2,490,503), representing a 61% increase compared to the same period in 2012. The solid performance of NYDA, the addition of Allerject™ in the Corporation's detailing portfolio and the strong performance of Suprax® were the main drivers of the increase in revenues.

The operating loss for the three months ended December 31, 2013 was $52,378 compared to the $558,814 in the three months ended December 31, 2012. The improvement was due to an increase in revenue of 117% as well as solid control of operating expenses. The net loss for the three months ended December 31, 2013 was $1,703,124 compared to the $659,958 in the three months ended December 31, 2012. The expenses related to the amalgamation with Chelsea Acquisition Corporation were the main reason for the difference in net loss.

The operating loss for the twelve months ended December 31, 2013 was $440,164 compared to the $2,079,969 in the twelve months ended December 31, 2012. The improvement was due to an increase in revenue of 61% as well as solid control of operating expenses. The net loss for the twelve months ended December 31, 2013 was $2,513,191 compared to the $2,246,068 in the twelve months ended December 31, 2012. The expenses related to the amalgamation with Chelsea Acquisition Corporation had an important impact on the 2013 net loss.

"2013 was an excellent year for Pediapharm. Following the amalgamation with Chelsea Acquisition Corporation and the concurrent financing with gross proceeds of approximately $7,000,000, the common shares of Pediapharm began to trade on the TSX Venture Exchange in December." stated Sylvain Chretien, President and Chief Executive Officer of Pediapharm. He added: "What is remarkable is that, even with the additional efforts required to complete the transaction, the Pediapharm team stayed very focused and achieved revenue growth of 61% while keeping the operating expenses similar to last year."


----------------------------------------------------------------------------
                            December     December     December     December
                            31, 2013     31, 2012     31, 2013     31, 2012
                          (3 months)   (3 months)  (12 months)  (12 months)
----------------------------------------------------------------------------
Revenue                    1,237,538      570,945    4,003,807    2,490,503
----------------------------------------------------------------------------
Selling and
 administrative expenses   1,289,916    1,129,759    4,443,971    4,570,472
----------------------------------------------------------------------------
Operating loss               (52,378)    (558,814)    (440,164)  (2,079,969)
----------------------------------------------------------------------------
Other expenses             1,650,746      101,144    2,073,027      166,099
----------------------------------------------------------------------------
Net loss                  (1,703,124)    (659,958)  (2,513,191)  (2,246,068)
----------------------------------------------------------------------------
Cash flow from (used in)
 operating activities     (1,020,399)    (233,623)  (1,583,500)  (1,932,622)
----------------------------------------------------------------------------
Cash flow from (used in)
 investing activities        249,443          605      (61,789)     (78,372)
----------------------------------------------------------------------------
Cash flow from (used in)
 financing activities      6,375,730      286,284    7,157,548    1,804,644
----------------------------------------------------------------------------

About Pediapharm Inc.

Pediapharm is the only Canadian specialty pharmaceutical company dedicated to serving the needs of the pediatric community. Its mission is to bring to the Canadian market the latest innovative pediatric products with the objective to improve the health and the well-being of children in Canada. Since its debut in 2008, Pediapharm has entered into numerous commercial agreements with partners from Canada and other countries around the world. The company's innovative product portfolio includes NYDA®; a breakthrough treatment for head lice; EpiCeram® a non-steroid emulsion for eczema; KoolEffect™ which reduces the symptoms of fever; and VapoLyptus™; a soothing vapour patch of Eucalyptus and Camphor.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements and other statements that are not historical. Such forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from target results and the results or events predicted in these forward-looking statements. As a result, investors are cautioned not to place undue reliance on these forward-looking statements.

The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking information reflects the current expectations or belief of the Corporation based on information currently available and such information is subject to a number of assumptions, risks and uncertainties described in details at pp. 35 to 41 of the Management Information Circular of Chelsea Acquisition Corporation dated November 12, 2013 available on SEDAR at www.sedar.com and other risks associated with being a specialty pharmaceutical company.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.