QUEBEC – October 26, 2006 – Today, Advitech Inc. (TSX-V: AVI) announced its first significant
sales of DermylexTM and its financial results for the third quarter ended September 30, 2006.
Advitech today announced that it had generated total sales of $ 298 098 in the third quarter of
2006, of which $ 292 594 from the sales of Dermylex™. This first commercialized product
originating from Advitech’s XP-828L platform is for patients suffering from mild-to-moderate
psoriasis. Most of the sales were carried out in Canada through Jamieson Laboratories, our
commercial partner. Since April 2006, within a market test program, Dermylex™ has been
distributed, on a selected basis, by Jamieson Laboratories in some drugstores and pharmacies in
Québec City and Toronto. The results have demonstrated the interest of patients in the product,
because of its efficacy and safety. “Dermylex™ is now available in all pharmaceutical chains in
Québec, and its introduction in other Canadian provinces will be completed in November 2006,”
Renaud Beauchesne, Advitech President and Chief Executive Officer, pointed out.
“Along with its distribution partners announced earlier, Advitech just signed an agreement in
principle with 'Associated Medical Supplies Co. Ltd' from Hong Kong for the distribution of
DermylexTM in the Hong Kong and Macao markets. This new partnership should lead to a
definitive sales agreement for 2007,” Renaud Beauchesne added.
Furthermore, the Company is still continuing negotiations with other partners in other countries to
expand its distribution and accelerate its sales program for 2007. “According to the results
obtained in Canada, and with the other signed distribution partnerships, Advitech is confident that
it will be able to reach its objectives quickly, thus increasing its revenues, and ensuring the
Company’s profitability,” the CEO explained.
From the financial standpoint, the impact of revenues generated by DermylexTM sales and the
contingency plan, started at the end of 2005, has made it possible to reduce the net operating
loss for the last quarter significantly. “We will continue our efforts and push forward our marketing
plan to meet our sales and growth forecasts,” the President and Chief Executive Officer indicated.
THE COMMERCIALIZATION OF DERMYLEXTM
For the third quarter ended September 30, 2006, the net loss stood at $ 266 435, or $ 0.005 per
share, compared to a net loss of $ 528 108, or $ 0.01 per share, for the same period in 2005, a
decrease of $ 261 673. Revenues for the third quarter of 2006 were $ 298 098, compared to
$ 89 169 in 2005. The 2005 sales were generated primarily by the distribution of Lactium, the sale
of which has since been terminated by the Company. The third quarter revenues for 2006
comprised sales of DermylexTM, the first commercial product originating from the XP-828L
platform. During this quarter, the Company shipped out its first orders, and made significant
sales. Gross R&D expenses reached $ 138 644 during the third quarter of 2006, down from
$ 204 038 for the same period last year. This decrease is due primarily to the higher R&D
expenses incurred during the same period last year for the double-blind, placebo-controlled study
As at September 30, 2006, cash and cash equivalents totaled $ 468 558, compared to $ 859 937
as at June 30, 2006, a decrease of $ 391 379. This variation is due to current operating activities
of the Company, which is in line with the Company’s expectations.
In compliance with our 2006 plan, Advitech’s objective is to finalize, for the last quarter of 2006,
new financing from convertible debentures and to prepare equity financing for the first quarter of
2007. To date, we have completed an interim financing round of $ 550 000.
The third quarter financial statements and the fiscal year financial statements, as well as
the management’s discussion and analysis of results of operations and financial
condition, are available on the Company’s website at the following address:
Advitech is a life science and technology Company with the mission of discovering and
commercializing scientifically supported, patented natural health products. Effective and safe,
these products are designed to help counter Immune-Mediated Inflammatory Disorders (IMID),
such as psoriasis and inflammatory bowel diseases. Advitech’s common shares are listed on the
TSX Venture Exchange under the symbol AVI. The number of common shares outstanding is
54 799 818.
Dermylex™, developed by Advitech, is an oral natural health product relieving mild-to-moderate
psoriasis symptoms. Its efficacy has been clinically proven by two clinical trials, one of them multicenter,
double-blind and placebo-controlled, for 112 days and on 84 patients, confirming
Dermylex™’s efficacy and safety for that type of psoriasis. Dermylex™ is currently available in
Canada. For more information, please visit the www.dermylex.ca website.
About Associated Medical Supplies (AMS) Co. Ltd
Associated Medical Supplies (AMS) is one of the Hong Kong Government’s registered medical
suppliers of all kinds of medical products to government hospitals, laboratories and medical
institutions in Hong Kong. In China AMS established five regional sales and service centers in
Beijing, Shanghai, Guangzhou, Tianjin and Hangzhou. These regional centers control a nationwide
distribution and after-sale service network. AMS has also established dealerships in Macao,
Thailand, Malaysia and the Philippines.
This press release contains forward-looking statements which reflect the Company's current
expectations regarding future events. The forward-looking statements involve risks and
uncertainties. Actual results could differ materially from those projected herein.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this