Afexa narrows Q1 losses on higher sales
Afexa Life Sciences (TSE:FXA) announced Friday it narrowed its losses in the first quarter as its sales more than doubled, despite a typically slow season for colds and flus.
For the three months ending June 30, the COLD-FX maker posted a net loss of $3.1 million, or a $0.03 loss per share, compared to a $4.1 million loss, or a $0.04 loss per share, a year ago.
Revenues more than doubled to $4.6 million, from $1.8 million in the same period last year.
"Our first quarter revenue was in line with our expectations and much better than last year's first quarter," said president and CEO, Jack Moffatt.
"Typically our first quarter revenue is the lowest revenue quarter as it corresponds to the period when colds and flu are at their lowest."
Still, Afexa said its earnings were partially offset by additional costs incurred with the launch of its COLDSORE-FX product earlier this year.
The company's flagship product, COLD-FX, remains the best selling cold and flu remedy in Canada.
Earlier this month, Paladin Labs (TSE:PLB) made an unsolicited offer to acquire Afexa, for either $0.55 per share in cash, or 0.013 of a Paladin share for each Afexa share.
Afexa said the offer, which values it at about $56.8 million, "significantly undervalues" the company.
"Given the strength of our current and future growth potential as an integrated business. . . we believe the market will recognize the value of our unique business and its fundamental strengths," Moffatt added.
The Edmonton, Alberta-based company said it is still reviewing Paladin's offer, but has strongly advised its shareholders to take no action regarding the offer until Afexa has made a formal recommendation.
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