Canadian sterol company Forbes Medi Tech yesterday reported improved results for the three and nine-month periods to end of September, reducing net losses and improving expenses.
For the nine months ended September 30, 2002, the company reported a net loss of C$1.0 million compared with a loss of C$8.4 million for the nine months ended October 31, 2001 (the company changed its year-end from October 31 to December 31, so the comparative periods are the three and nine months ended October 31, 2001).
The improvement resulted from a one-time C$6.1 milliongain in the second quarter on the purchase of Reducol rights for anamount significantly below the deferred revenue liability on the company'sfinancial statements. Reductions in general and administrative expenses and research and development also contributed to the improvement.
Forbes reported record phytosterol revenues of C$6.3 million for thenine month period, compared with C$5.6 million the previous year. The increase in sales was attributed to sales of non-food grade sterols from the company's share of the Phyto-Source joint venture. A net loss of C$1.9 million for the third quarter compared to C$1.8 million for the comparable period last year.
Forbes said it expected phytosterol revenues to increase steadily over thethree quarters starting in the fourth quarter 2002, as a result of its newcontracts.
"This has been a very important quarter for Forbes as we have successfullycompleted not just one, but four major milestones," said Charles Butt,president and CEO. "The company's cholesterol-lowering pharmaceutical FM-VP4 has been approved to initiatePhase II in its clinical trials, sales contracts for cholesterol-loweringsterols have exceeded our expectations, and we have improved the company's working capital position through initial payments on the sale of our Amqui pilot plant and completion of some modest equity financings. "
The company said it would keep its revenue guidance for 2002 at C$8 million, of which direct sales and royalties will be approximately $7million.