Vancouver, Canada -- Forbes Medi-Tech Inc. (TSX:FMI; NASDAQ:FMTI) today announced its financial results for the three months ended March 31, 2005. Comparative period for these statements is the three months ended March 31, 2004. All amounts are in Canadian Dollars unless otherwise noted.
First Quarter 2005 Highlights
. Reported total revenue of $4.72 million for the quarter ended March 31, 2005 compared with $3.26 million for same period last year . Reported net loss of $0.07 per share for the quarter ended March 31,
2005 compared with a net loss per share of $0.06 for same period last year . Announced revenue guidance of CDN$21 to $22 million for fiscal 2005 . Commenced a 90-day toxicity study for Forbes' cholesterol-lowering drug, FM-VP4 . Received an opinion of substantial equivalence from European regulatory authorities allowing Forbes to market its cholesterol-lowering ingredient, Reducol(tm), in a variety of approved food groups . Commenced sterol shipments under a three-year US$24.4 million agreement between Forbes' manufacturing joint venture, Phyto-Source LP, and a leading multinational ingredient company
"Achieving our milestones in Phytosterol sales and plant expansion has provided solid growth in our cholesterol-lowering ingredient business", says Charles Butt, President and CEO of Forbes Medi-Tech Inc. "Our value-added approach with the Reducol(tm) brand name has started to take effect with recent and forthcoming product launches in Europe.
Additionally, our drug development program continues to progress as we move towards the initiation of a US Phase II trial of our cholesterol-lowering drug, FM-VP4."
Marketing & Sales
The Company's cholesterol-lowering, clinically supported and branded ingredient, Reducol(tm) is a key component for product launches scheduled in Europe for 2005. The first European launch occurred recently with Kesko of Finland for a cholesterol-lowering yogurt, sold under the "Pirkka" premium brand name. The yogurt is the first in a series of scheduled product launches planned for later this year with Kesko through their extensive product distribution to over 1,000 stores and subsequent marketing programs with reach to virtually every household in Finland. Announcements will be made in the event that additional product launches occur with Kesko or other major organizations.
Based on existing sales contracts, and assuming that forecasted supply requirements will be ordered and shipped, the Company maintains its revenue guidance for 2005 for total revenue of $21 to 22 million (20% increase over actual 2004). With the recent product launch and discussions with companies regarding possible new contracts, the Company will update its revenue guidance throughout the year.