QUEBEC – August 23, 2006 - Advitech Inc. (TSX-V: AVI) today announced its highlights and
financial results for the second quarter ended June 30, 2006.
Commercialization of Dermylex™
Since November 2005, Advitech has signed four agreements in principle for the
commercialization of DermylexTM, two of which are now definitive, those with Jamieson
Laboratories for Canada and Cothera S.A.S. for France. During the first two quarters of 2006, the
Company effected the first sales of DermylexTM , to conduct market tests, and received the first
significant purchase orders during the third quarter of 2006. Early in July, the Company shipped
the first order to Jamieson Laboratories and, since then, has received prospective new purchase
For Canada, the marketing plan orchestrated jointly by Jamieson Laboratories and Advitech, is
forecasting the completion of the introduction phase in the province of Quebec for September
2006, and October 2006 is the target for the remaining Canadian provinces. DermylexTM will then
be available across Canada by the beginning of the last quarter of 2006.
On other markets, the situation is evolving in the same positive way. Cothera, our French partner,
is about to finalize its launching plan for the last quarter of 2006. We are also about to finalize a
launching plan for the U.S. and Taiwan markets.
We are having ongoing discussions with new partners to extend DermylexTM distribution to
additional geographical markets as of the beginning of 2007.
‘’We are therefore confident that we shall surpass the objectives that we had set for 2006, and the
planning for 2007 will be based mainly on growth and a break-even situation for the Company
operations,’’ Renaud Beauchesne, President and Chief Executive Officer of Advitech, explained.
As for the financing of its activities, the Company finalized at the end of June an interim financing
round planned during the first quarter of 2006, and is in the process of preparing an additional
round for the last quarter of 2006, as presented in May at Advitech’s Annual Shareholders’
Meeting. That round will cover its needs until the end of 2007.
Research and Development
As planned, the Company has released the first results on Atopic Dermatitis (Eczema), a third
application generated from its technological platform, to complement the ones already published
on psoriasis and Crohn’s disease. These results are confirming the capacity of the XP-828L
technological platform to deliver innovative products with a very good commercial potential. It also
released additional results in July confirming the efficacy of DermylexTM on psoriasis and, in June,
the peer-reviewed U.S. magazine Journal of Cutaneous Medicine and Surgery published an
article on the open study on psoriasis, and will publish a second article on the double-blind,
The financial results are also in line with Company expectations. Advitech has succeeded in
increasing its cash position, and in cutting back its loss. "We will continue to manage the
Company under very strict controls, to keep an operating margin, and to increase our marketing
expenses for the commercialization of DermylexTM in the next few months," President and Chief
Executive Officer Beauchesne added.
For the second quarter ended June 30, 2006, net loss stood at $358,894, or $0.01 per share,
compared to a net loss of $536,168, or $0.01 per share, for the same period in 2005, a decrease
of $177,274. Revenues, for the second quarter of 2006, are $9,039 compared to $226,321 in
2005. The 2005 sales were generated mostly by the distribution of a product (Lactium) since
terminated by the Company. The second quarter revenues for 2006 are sales of DermylexTM for
market test purposes. Gross R&D expenses reached $131,587 during the second quarter of
2006, down from $309,617 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, placebocontrolled
study of DermylexTM. Research and development changes clearly explain the lower net
As at June 30, 2006, cash and cash equivalents totalled $859,937, compared to $730,229 as at
March 31, 2005, or an increase of $129,708 during this quarter, which is in line with the
The second 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 biotechnology Company specializing in the development of bioactive ingredients
from dairy proteins. Its key focus areas are in the fields of immunology and inflammation. Its main
platform, XP-828L, is a growth factor complex aimed at treating psoriasis, inflammatory bowel
diseases and other chronic immune-mediated inflammatory diseases (IMID). Advitech’s common
shares are listed on the TSX Venture Exchange under the symbol AVI. The number of
outstanding common shares is 54,799,818.
Dermylex™ is Advitech’s orally administered product for treating mild to moderate plaque
psoriasis. Dermylex™ is based on Advitech’s XP-828L, a bioactive ingredient with proven clinical
efficacy. On July 5, 2005, the Company reported positive results from its Phase II clinical trial of
XP-828L on psoriasis. The 112-day, multi-center, double-blind, placebo-controlled study,
involving 84 patients, confirmed the efficacy and excellent safety profile of XP-828L for this type
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