EDMONTON, ALBERTA--(CCNMatthews - May 2, 2005) - (All Figures are shown in Canadian Dollars)
CV Technologies Inc. (CVT) (TSX VENTURE:CVQ) today released its net sales and profit figures for the second quarter of 2005 which showed sales of $10.5 million and a profit of $3.1 million. This represents an 804% increase in sales over the comparable period a year earlier. Profits increased by $3.4 million from a loss of $0.3 million for the same quarter in fiscal 2004.
CVT president and CEO, Dr. Jacqueline Shan said, "We are pleased that the widespread acceptance of our lead product - COLD-fX(R) for both prevention and relief of colds and flu - has made it a leader within its field. Our sales for the past 6 months have been strong. I'm particularly pleased with our penetration into central and eastern Canada. At the same time, stores sales in western Canada continue to grow over what they were during the same period a year ago."
Dr. Shan said, "Our sales numbers confirm both the effectiveness of our brand building strategy as well as our increasing success in expanding our distribution network and penetration into eastern Canada. We now have 6,000 retail outlets carrying COLD-fX compared to just 1,200 stores which had it on its shelves in the winter of 2003/2004."
Dr. Shan went on to say, "This Company was built on science and remains absolutely committed to a rigorous scientific approach including on-going clinical trials which, along with business developments, have attracted
substantial media coverage in the past 6 months. In addition, a major advertising campaign in print and broadcast featuring Don Cherry has been a remarkable success. Don has played an important role in developing greater public awareness of COLD-fX. Canadians regard him as a man of integrity and trustworthiness. As a daily user of COLD-fX, he has underscored its value in strengthening the immune system year round."
Dr. Shan said, "It's gratifying to see that the skill, experience and hard work of our management team and staff are paying off. We continue to build this company on a strong foundation and carefully developed strategies designed to manage our growth as we move forward. We are also happy that Canadians see COLD-fX as something that helps to protect their immune system year round".
Dr. Shan said, "Even though it is springtime, we are already making plans to build our inventory to meet the growing demand we anticipate in the fall. At the same time we are focusing a lot of our resources on our summer sales during which time North Americans suffer an estimated 200 million summer colds as they try to cope with the stresses of both business and vacation travel. While sales of COLD-fX typically lessen in the summer months, sales of REMEMBER-fX(R) are unaffected by seasonality issues and CVT plans to continue to increase consumer awareness of its second lead product".
CVT year-to-date sales for the first six months of fiscal 2005 were $21.8 million, while profits were $7.3 million. These results compare favorably to sales of $2.6 million and a loss of $4,000 for the same period last year (2004). CVT continues to enjoy a strong cash position of $6.5 million at the end of the second quarter.
In future, CVT will continue to jointly release its sales numbers along with a complete financial report.
Financial Statements and Management Discussion and Analysis will be updated this evening on SEDAR.
ABOUT CV TECHNOLOGIES INC.
CV Technologies is a biotechnology company founded in 1992. It aims to become a global leader in the development and commercialization of safe, effective, evidence based, natural therapeutics for disease prevention and health maintenance. CVT's lead product, COLD-fX(R) strengthens the immune system and is widely used as a leading anti-cold, anti-flu, treatment. COLD-fX is patented and its unique mechanism of action is developed and standardized according to the Company's ChemBioPrint technology, a patented process that precisely identifies the chemical profile and biological activity of patented multi-active components-based natural therapeutics. This is a combination of chemical and pharmacological fingerprint that ensures each batch of products delivers verifiable and provable health benefits, and is both safe and consistent with previous batches.
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "intends", "expects" and similar expressions are intended to identify forward-looking statements. Such risks and uncertainties include, but are not limited to, the need for capital, changing market conditions, completion of clinical trials, patient enrolment rates, uncertainty of pre-clinical, retrospective and early clinical trial results, the establishment of manufacturing processes and new corporate alliances, the timely development, regulatory approval and market acceptance of the Company's products, and other risks detailed from time to time in the Company's filings with Canadian securities authorities.
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