“Our goal is to develop innovative products using our proprietary topical delivery platform (DelivraTM) to meet significant unmet medical needs and improve quality of life. With our proven patent-pending technology and formulation expertise, we have created medical grade products that have shown significant efficacy and predictable outcomes to patients,” said Dr. Joseph Gabriele, CEO of Delivra. “With the capability to deliver products on the market immediately that provide superior efficacy with minimum side effects that are commercial-ready, Delivra will capitalize on the significant growth opportunities ahead and advance innovative and alternative therapeutics to broaden the Company’s product offerings.”
Q3 2017 Financial and Operational Highlights:
- OTC sales of $923,850 for the quarter and $3,297,836 for the year-to-date, representing a 47% and 21% growth over the comparative periods, respectively;
- Significant operating efficiencies in the quarter and year-to-date over the comparative periods, through the optimization of expenses, resulting in a 57% and 37% reduction in operating expenditures, respectively, while continue to grow OTC sales; and
- Continued to reduce cash flow expenditures in operating activities over the past four quarters, while delivering 21% growth in OTC sales in the year-to-date.
“Howard is a highly-experienced, accomplished business leader with a proven track record of building global brands. Building on our momentum, Howard will bring his diverse set of marketing skills and track record of success, with a particular depth in customer and brand strategy, to drive the LivRelief brand and sales,” said Dr. Joe Gabriele, CEO of Delivra.
Q2 2017 Financial and Operational Highlights:
Canada OTC sales of $1.12M for the quarter and $2.37M for the first half, representing a +7% and +16% growth over the comparative periods, respectively;
- Delivered third consecutive quarter of over $1M in revenue;
- Significant operating efficiencies in the first half of the year over the comparative period, through the optimization of expenses, resulting in a 30% reduction in operating expenditures, before termination costs, while continuing to grow OTC revenues;
- Continued to reduce cash flow expenditures in operating activities over the past three quarters, while delivering 16% growth in OTC sales in the first half of the year;
- Cash burn in the first half of 2017 significantly reduced by $1.2M over the comparative 2016 period, while delivering growth in OTC sales;
- Development pipeline continues to be very robust, including products targeted towards conditions which represent significant market opportunities, such as osteoarthritis, sleep, psoriasis, migraines, cardiovascular disease, and circulation;
- Completed a licensing agreement with ARA-Avanti RX Analytics Inc. for natural and medicinal products using hemp; and
- Added Board strength with the appointment of Ms. Louisa Greco, who brings significant healthcare sales and marketing expertise.
“We are excited about Louisa joining our Board. With a strong track-record of business leadership and growing consumer and pharmaceutical brands in Canada, Louisa will be a tremendous addition to our Board. We believe her deep experience and expertise broadly in healthcare and in consumer products will be invaluable as we advance our portfolio of products. We look forward to her contributions,” said Dr. Joseph Gabriele, CEO of Delivra. We also wish to thank David for his contributions as a director, since the Company’s public listing. He has been an asset to our Board and our business.”
Q1 2017 Financial and Operational Highlights:
- Increased revenue by 26% from $992,682 to $1,252,297, driven by growth in sales of the Company’s flagship LivRelief products;
- Completed a licensing agreement with Dosecann Inc. and ARA-Avanti RX Analytics to develop a unique suite of standardized cannabis-based products for medical cannabis research, development, and commercialization markets;
- Advanced product development for the Company’s pharmaceutical portfolio; and
- Expanded the Company’s patent portfolio to 8 pending patents highlighting the broad applicability of the Company’s proprietary delivery system;
- Increased operating efficiencies and reduced the number of employees, resulting in annual savings of approximately $750,000, while achieving record revenues for a quarter.
The hemp plant has been hugely overlooked as a great alternative for pain management and other medical conditions. The partnership between the two companies addresses many of the concerns of the unsettling psychotropic effects of THC found in cannabis, especially in the elderly and high anxiety patient population. In comparison, hemp contains low THC cannabis content and many beneficial cannabinoids, including cannabidiol (CBD). Hemp is also known for its diverse and robust anti-inflammatory flavonoids content, along with its high nutritional value because of its high essential polyunsaturated fatty acids (omega 3’s), which matches that of the human body. Properly administered, medical non-psychotropic cannabis provides real alternatives to more addictive type drugs, including opioids.
“This collaboration between Delivra and Avanti addresses a rapidly growing field of medicine by seeking to standardize, validate, package and distribute natural products that can be sold world-wide, supported by evidenced-based science. This transaction provides Delivra with a compelling opportunity to participate in the changing landscape of the cannabis marketplace in which standardization will be critical to success. With formulation and extraction beginning immediately, we expect products to be in natural product stores, grocery stores and pharmacies in 2018,” said Dr. Joseph Gabriele, CEO of Delivra.
“Our goal is to develop sophisticated natural products with greater safety and efficacy for the patient, providing consistent, accurate dosing, and that are manufactured under pharmaceutical GMP Standards,” said Dr. Mehrdad Barghian, CEO of Avanti. “With an approved Health Canada import license for both traditional cannabis and hemp oils from South America and Europe, state-of-the-art extraction facilities, and the formulation expertise of Delivra, we have all the elements to become the leader in critical analytical testing, extraction, and production of innovative cannabis products in Canada.”
Under the terms of the agreement, Delivra will use its expertise in formulation and its proprietary delivery system platform to conduct preclinical and clinical studies for the evolving Canadian hemp market along with expanding international markets. Avanti will potentially gain a suite of natural hemp products for pain-related illnesses. The costs of the clinical trials and research will be paid by Avanti. Delivra and Avanti will own the intellectual property, and Delivra will receive a royalty percentage on the related gross sales of the suite of natural products in a license agreement which continues for as long as the products are sold by Avanti. Avanti’s Pharmaceutical GMP facility will be responsible for the quality-control testing, extraction and production of the finished products under pharmaceutical GMP Standards.
ABOUT DELIVRA CORP.
Delivra Corp. is a specialty biotechnology company that has a proprietary transdermal delivery system platform that can shuttle pharmaceutical and natural molecules, through the skin, in a targeted specific manner. Delivra manufactures and sells a growing line of natural topical creams with the proprietary transdermal delivery system platform under the LivReliefTM brand, for conditions such as joint and muscle pain, nerve pain, varicose veins, wound healing, and under the LivSportTM brand for sports performance. LivReliefTM products are available in pharmacies, grocery chains, and independent health food stores across Canada, and on-line at www.livrelief.com. LivReliefTM pain and nerve pain products are also available in the United States on Amazon and at www.livrelief.com/us. In parallel with its consumer products business, Delivra also has a mandate to license its patent-pending proprietary transdermal delivery technology platform to pharmaceutical companies globally, for the repurposing of pharmaceutical molecules transdermally to treat a broad range of conditions, along with licensing its over-the-counter products globally. Delivra is headquartered in Burlington, Ontario and has a research and development laboratory in Charlottetown, PEI.
ABOUT ARA-AVANTI RX ANALYTICS INC.
ARA-Avanti Rx Analytics Inc. is the first Health Canada GMP and OCDS approved Contract Organization specializing in the field of controlled drugs and substances specializing in the area of Medicinal Marijuana, HEMP, Cannabinoids, and Marijuana based concentrated products. ARA–Avanti Rx Analytics Inc. offers a comprehensive menu of services ranging from analytical R&D and QC testing, large commercial scale extraction under a controlled environment, cannabinoids purification, cannabis infused-product formulation, and controlled substances importation and exportation, as well as the QA and regulatory consulting services. Our focus is in the provision of a broad range of sophisticated, state-of-the-art equipment, instrumentation, and services to Health Canada approved licensed producers (LPs), authorized pharmacies, medical practitioners, Health Canada approved patients, government enforcement and regulatory agencies, and regulatory approved allied cannabis communities, and to continue to remain at the forefront of the healthcare industry, building an enviable reputation. ARA-Avanti Rx Analytics Inc. core values include: 1) Advance quality control and quality assurance for medical cannabis; 2) Support the safe consumption of medical cannabis; and 3) Ensure transparency for our medical cannabis community.
Further information on Avanti can be found at www.AvantiRx.com.
For more information, please contact: Dr. Mehrdad Barghian, President, CEO, QPIC at MBarghian@AvantiRx.com.
For more information, please contact:
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute “forward-looking statements”, which are not comprised of historical facts. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “intends”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”, and similar expressions. Specifically, forward-looking statements in this news release include, without limitation, statements regarding: the research to be completed by Delivra for a suite of medical marijuana based products; the Company’s drug research and development plans in general; the timing of operations; and estimates of market conditions. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events, performance, or achievements of Delivra to differ materially from those anticipated or implied in such forward-looking statements. The Company believes that the expectations reflected in these forward-looking statements are reasonable, but there can be no assurance that actual results will meet management’s expectations. In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting Delivra will continue substantially in the ordinary course and will be favourable to Delivra, that clinical testing results will justify commercialization of the Company’s drug candidates; that Delivra will be able to obtain all requisite regulatory approvals to commercialize its drug candidates, that such approvals will be received on a timely basis, and that Delivra will be able to find suitable partners for development and commercialization of its drug repurposing candidates on favourable terms. Although these assumptions were considered reasonable by management at the time of preparation, they may prove to be incorrect. Factors that may cause actual results to differ materially from those anticipated by these forward-looking statements include: unsuccessful outcomes in research for a suite of medical cannabis based products; uncertainties associated with obtaining regulatory approval to perform clinical trials and market products; the need to establish additional corporate collaborations, distribution or licensing arrangements; the ability of the Company to generate sales and profits; the Company’s ability to raise additional capital if and when necessary; intellectual property disputes; increased competition from pharmaceutical and biotechnology companies; changes in equity markets, inflation, and changes in exchange rates; and other factors as described in detail in Delivra’s public filings, all of which may be viewed on SEDAR (www.sedar.com). Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and information, which are qualified in their entirety by this cautionary statement. Except as required by law, Delivra disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
“The Federal Government of Canada has numerous concerns, and barriers to overcome, before legalizing cannabis, including stricter regulatory controls. The partnership between the three companies addresses many of these concerns, providing greater safety and efficacy of medical cannabis specific products for the patient, with products that provide consistent, accurate dosing, and that are manufactured under pharmaceutical GMP Standards,” said Dr. Joseph Gabriele, CEO of Delivra. “This collaboration between Delivra, Dosecann and Avanti addresses an exploding field of medicine by seeking to standardize, validate, package and distribute cannabis products in innovative mono-dose delivery platforms to licensed producers and other future legal distribution networks, ultimately meeting the needs of the patient.”