Vancouver, Canada - Forbes Medi-Tech Inc. (TSX:FMI; NASDAQ:FMTI or NASDAQ:FMTID ) today announced its financial results for the year ended December 31, 2007 versus the year ended December 31, 2006. All amounts are in Canadian dollars unless otherwise noted.
Fiscal Year 2007 Highlights
. Reported total revenue of $9.4 million for year ended December 31,
2007 versus $7.2 million for year ended December 31, 2006, a 31% increase.
. Reported net loss of $0.30 per share from continuing operations for the year ended December 31, 2007 compared to a net loss of $0.48 per share from continuing operations for the year ended December 31, 2006.
. Continued to expand the market penetration for Reducol(tm) containing products with launches in Portugal, Finland, Taiwan and The Netherlands.
. Furthered the development of early stage compounds focused on asthma and diabetes.
"Despite declining financial market conditions towards the end of 2007, the Company was able to show continued growth in its ingredient business while maintaining progress on its development programs for the FM TP 2000 and 3000 series" said Charles Butt, President and CEO of Forbes Medi-Tech Inc. "The strong emphasis on M&A activities, started in 2007 in both the Nutraceutical and Pharmaceutical sides of the business, will continue through 2008, with the hope of completing a transaction by year-end."
In previous news releases and public filings the Company has stated that its working capital was sufficient to finance operations through the second quarter of 2008. After taking into account planned expenditures, anticipated revenues, and assuming no unanticipated costs or expenses, but without taking into account the recently announced Non-Dilutive Financing, the Company now considers that its capital resources will be sufficient to finance operations into the beginning of the third quarter of 2008. Assuming that the Non-Dilutive Financing closes as anticipated, and after taking into account the same factors and assumptions, the Company considers that its capital resources will be sufficient to finance operations into the fourth quarter of 2008.
The Company is diligently working to obtain additional funding, as well as enhancing its portfolio of products through potential strategic partnerships and M&A activities.
Forbes reached its 2007 revenue guidance by achieving $8.9 million of sales, consisting of Reducol(tm) and other cholesterol-lowering ingredients plus value added product revenue. Forbes is forecasting continued strong growth in Reducol(tm) and other value added product sales for 2008 with anticipated sales of $9.75 -- $10.5 million. This revenue guidance is primarily based on the contracted and forecasted tonnage of Reducol(tm), and other value added products for sale into the functional food and dietary supplement markets. We have consistently issued revenue guidance in the past in an effort to provide our shareholders with an updated revenue outlook in a timely manner. We caution readers that our revenue guidance is not to be relied upon for any other purpose. The 2008 revenue guidance includes assumptions that the contracted and forecasted amounts will be ordered and shipped as anticipated.
In 2007, Forbes has introduced and expanded the Reducol(tm) product ingredient into various countries and additional retailers. For example, rye bread containing Reducol(tm) was introduced into Finland and in The Netherlands and Taiwan, milk drinks containing Reducol(tm) were also launched. As a result of these new initiatives, Reducol(tm) containing products can now be found in 12 major countries worldwide.
While the Company continues to launch in key international markets, the U.S. market remains a major focus for Forbes. The Company continues to work with various US food manufacturers but the completion of the product development stage and the timing of product launches is unclear at this point, The Company will update its shareholders in the event of a product launch.
Forbes has entered the final stages of compound selection for two of the most rapidly growing therapeutic indications, asthma and type 2 diabetes. Compounds in development are chosen on the basis of selectivity (the ability to home in on one receptor), potency and pharmacokinetics (drug distribution in the body over time). The FM-TP2000 Series targeting type 2 diabetes are based on the neural signal, following a meal, which is known to increase insulin secretion from pancreatic beta cells. The FM-TP3000 Series targeting asthma are inhaled VPAC2 agonists. Other investigational VPAC2 agonists have demonstrated immediate bronchodilatation with the potential for anti-inflammatory effects. The compound differs from long-acting Beta2 adrenoceptor agonists by working through a different receptor and mechanism. We now expect confirmation of both lead compounds in the first half of 2008. The Company's strategy is to capitalize on the intrinsic value of selected FM-TP Compounds through collaborative agreements and upfront milestone payments at an early stage