Vancouver, Canada - Forbes Medi-Tech Inc. (TSX:FMI; NASDAQ:FMTI) today announced its financial results for the year ended December 31, 2006 versus the year ended December 31, 2005. All amounts are in Canadian dollars unless otherwise noted. A conference call to discuss the financial statements will be held tomorrow, March 29, 2007 at 1:30pmPT /4:30pmET.
Fiscal Year 2006 Highlights
- Reported total revenue of $7.2 million for year ended December 31,
2006 versus $4.4 million for year ended December 31, 2005, a 64% increase
- Reported net loss of $0.48 per share from continuing operations for the year ended December 31, 2006 compared to a net loss of $0.48 per share from continuing operations for the year ended December 31, 2005
- Forbes completed the US Phase II clinical trial of its cholesterol-lowering compound, FM-VP4, and subsequently initiated its out-licensing strategy
- Forbes acquired the FM-TP Series of Compounds through the acquisition of TheraPei Pharmaceuticals
- Forbes' customers launched a wide variety of cholesterol lowering dairy products containing Reducol(tm) in a number of European countries including France, the United Kingdom, Finland and the Netherlands, at major retailers including Carrefour, Tesco, U.K. Wal-Mart/ASDA, Kesko, and Albert Heijn
- Forbes received US$25 million from the sale of its interest in the Phyto-Source manufacturing joint venture
"As we focused on driving our company forward during 2006, our achievements and significant challenges brought change that required us to balance past ventures with future opportunities, and to build on the momentum created by our successes," says Charles Butt, President and CEO of Forbes Medi-Tech Inc. "We have re-focused our pharmaceutical development program to concentrate on the FM-TP Series of Compounds while continuing to expand the number of products carrying our cholesterol-lowering food ingredient, Reducol(tm). The balance of our pharmaceutical and nutraceutical areas of our business has enabled us to be in a strong position to make adjustments going into 2007."
Forbes reached its 2006 revenue guidance by earning $1.1 million in interest income and $6.1 million of Reducol(tm) and other cholesterol-lowering ingredients and value added product revenue. For 2007, Forbes' revenue outlook of $7.5 - $8 million includes sales from
Reducol(tm) and other cholesterol-lowering ingredients and value added products and excludes interest income. The expected growth of up to 31% is primarily based on contracted and forecasted amounts for Reducol(tm) and other value added products for sale into the functional food and dietary supplement markets.
Forbes' re-focused pharmaceutical development program will concentrate on the FM-TP Series of Compounds being designed to target specific aspects of Metabolic Syndrome and various Inflammatory Lung Diseases.
The Company has also implemented a strategy to out-license FM-VP4 (the Company's novel cholesterol absorption inhibitor.) to take advantage of the compound's clinically significant results, safety profile, dose response and strong market opportunity. This allows us to reduce R&D expenses and focus on exciting new development opportunities.
The proliferation of the Company's leading cholesterol-lowering food ingredient, Reducol(tm), continues with the number of store keeping units (SKU's) of Reducol(tm)-based products increasing from 4 up to 28 worldwide. Product launches in 2006 included Tesco and Wal-Mart/ASDA in the United Kingdom, Albert Heijn in the Netherlands, Kesko in Finland, Modelo Continente and Jeronimo Martins in Portugal, and Carrefour in France. The Company's next steps include the continued expansion into Asia and North America with a focus on the United States as Forbes expects new countries to come on board and plans to launch new dairy products and supplements in 2007. Additionally, Forbes is looking to acquire new ingredients and build a portfolio of products that will help to impact overall revenue, build mass appeal, and forge partnerships with manufacturers.
In accordance with CICA Handbook Section 3475, the activities relating to the Phyto-Source joint venture operations, assets and liabilities disposed of in 2006 have been presented as discontinued operations in the consolidated financial statements ended December 31, 2006 and in the following analysis. Results for the prior year have also been reclassified to reflect this treatment.