EDMONTON, ALBERTA--(CCNMatthews - Aug. 16, 2004) - (CVQ - TSX VEN). CV Technologies Inc. ("CVT" or "the Company") today released its financial and operating results for the third quarter of fiscal 2004 and an update on the status of its clinical trials.
CVT posted its highest-ever sales for the quarter. Over the months of April, May and June, an historically slow period for CVT, the Company had net sales of $1,071,086 compared to $268,613 in the same quarter of last year representing a 300% quarter-over-quarter increase. Losses for Q3, 2004 were reduced 88% to $54,931 from $476,934 for Q3 2003. From a year-to-date perspective, net sales in fiscal 2004 stand at $3.7 million which is 298% of last year's sales of $1.24 million. Net losses year to date are $58,569 compared to $860,848 in 2003.
This favorable performance in sales is attributed to new marketing strategies involving COLD-fX(R) and the launch of REMEMBER-fX(R). Losses were minimized as CVT cut its product costs by 5% compared to last year and implemented tighter cost control measures.
"I'm especially pleased with these results given our significant commitment to brand building, expansion of our distribution network and our continued emphasis on science and clinical trials," says Dr. Jacqueline Shan, president, CEO and Chief Scientific Officer. "Q3 historically represents a slow period for CVT, but in Q3 2004 we have broken that trend. We are very encouraged as we head into our historically strong fourth quarter."
During Q3, CVT achieved numerous milestones including the successful completion of the treatment phase of its two pivotal clinical trials on COLD-fX in Canada. The Company has officially filed with Health Canada on the completion of the treatment phase of these two trials. Both trials were carried out in conjunction with Capital Health of Edmonton and the University of Alberta. Data collection and analysis of the results are in their final phases. The majority of the costs related to these clinical trials have been accounted for in the '03 results. According to Dr. Shan, "Clinical trials of this magnitude typically represent a significant financial burden on the resources of any biotechnology company. I am very pleased to see that we are able to complete these two trials without putting significant financial pressure on the Company. Clinical trials represent a critical component of CV Technologies' continuing efforts to strengthen our scientific foundation, empowering our business growth strategies and magnifying the competitive advantages of our products."
ABOUT CV TECHNOLOGIES INC.
CV Technologies is a biotechnology company founded in 1992. It aims to become a global leader in the development, distribution, marketing and selling of safe and effective natural health products for disease prevention and health maintenance. CVT's lead product is COLD-fX(TM), a year-round medication that has been shown, by an FDA-regulated Phase II Clinical Trial, to reduce the risk of getting a cold or flu by 89%. As an immune booster, it is widely used year round including the summer period during which time North Americans suffer an estimated 200 million colds. The unique product is patented and was developed
and standardized according to the Company's ChemBioPrint technology, a patented process that precisely identifies the chemical profile and biological activity of natural health products. This is a combination of chemical and pharmacological fingerprinting 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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