News Feed Item

Tribute Pharmaceuticals Reports Full Year 2013 Results and Lays the Groundwork for Future Growth

MILTON, ONTARIO -- (Marketwired) -- 03/31/14 -- Tribute Pharmaceuticals Canada Inc. (OTCQB: TBUFF)(OTCBB: TBUFF)(PINKSHEETS: TBUFF) ("Tribute" or the "Company"), a Canadian specialty pharmaceutical company engaged in the acquisition, licensing, development and promotion of healthcare products in Canada and the United States, today announced financial results for its fiscal year ending December 31, 2013. In this press release, all dollar amounts are expressed in Canadian currency (unless otherwise noted) and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).

Full Year 2013 Highlights:

--  Revenues increased 8.9% for the year ended December 31, 2013 compared to
    same period in 2012;

--  Gross profit was up 16% for the year ended December 31, 2013 compared to
    the same period in 2012;

--  The Investigational New Drug (IND) application for Bezalip(r) SR, a
    treatment for patients with severe hypertriglyceridemia, was cleared by
    the U.S. Food and Drug Administration (FDA);

--  Cambia(r), the only prescription non-steroidal anti-inflammatory drug
    available for the acute treatment of migraine was officially launched to
    primary care physicians in Canada;

--  IMS, an audited third party provider of sales data, reported a 36.3%
    increase in total prescriptions written for Cambia in Q4 2013 when
    compared to Q3 2013;

--  SWK Funding LLC and the Company entered into a credit agreement pursuant
    to which SWK Funding LLC advanced US$6,000,000;

--  The regulatory authorities of Hong Kong approved the sale of NeoVisc(r),
    a proprietary product developed by the Company used for the temporary
    replacement of synovial fluid in osteoarthritic joints.

"We continued to execute on our growth strategy in 2013 and set the foundation for continued growth in 2014," said Rob Harris, President and CEO of Tribute. "We made a significant investment in the primary care launch of Cambia early in 2013, including the expansion of our sales force. This expansion will further enable us to increase sales of all our promoted products in Canada, including Bezalip® SR, Soriatane® and NeoVisc®. Additionally, we now have the capacity to introduce new products in Canada utilizing our existing sales force, and our near term business development efforts are focused on this single goal. Overall, our combined objective in 2014 is to increase revenues through organic growth and through business development efforts, as well as to optimize operational performance."

Tribute also successfully filed an Investigational New Drug application with the US FDA for Bezalip® SR in 2013, and subsequently retained JSB-Partners, a global life sciences advisor, to take the lead on partnering discussions to find a U.S. co-development and commercial partner in the US

"Specific to our development efforts, we will continue to move Bezalip® SR forward in 2014 towards an eventual NDA filing in the U.S.," added Mr. Harris. "In parallel to our partnering discussions with Bezalip® SR, we will also look to exploit our proprietary products Uracyst® and NeoVisc® in new international territories. We expect an additional patent to be granted in Europe for Uracyst® this year, and we believe this will present new opportunities for the product and for the Company in this market. With our recent developments in mind, we look forward to the challenge of building on our successes, as we believe our achievements during the fiscal year ended December 31, 2013 laid the foundation for significant progress during 2014."

Wolfgang Stoiber of JSB Partners stated, "We are excited to be working with Tribute Pharmaceuticals on establishing a potential late stage development and future marketing partnership with another pharmaceutical company for their product Bezalip SR. Over the last 15 years we have helped numerous bio-pharmaceutical companies develop partnerships and joint ventures for their respected products and look forward to the possibility of completing a transaction on Bezalip SR".

Review of Full Year Operating Results

Total net revenues for the twelve-month period ended December 31, 2013 increased by 8.9% to $13,440,400 compared to $12,342,800 for the same period in 2012. The increase in sales between the corresponding periods was attributable to an increase in Licensed Domestic Product Net Sales of $275,400 or 3.3%; an increase in Other Domestic Product Sales of $872,000 or 35.0%; and $197,900 of Royalty and Licensing Revenue.

For the twelve month period ended December 31, 2013 gross profit was $5,997,300, higher by 16.0% or $828,400 compared to the prior year. Underlying improvements were due to additional gross profit of $347,800 from Licensed Domestic Product Net Sales, $303,300 from Other Domestic Product Sales and International Product Sales and $197,900 from Royalty and Licensing Revenues.

Selling, general and administrative expenses for the twelve-month period ended December 31, 2013 were $9,830,100 compared to $8,870,600 for the same period in 2012 for an increase of $959,500 or 10.8%. The increase in selling, general and administrative costs is primarily due to significant investment in the expansion of the Company's sales force for the launch of Cambia to primary care physicians in 2013, marketing expenses to grow its existing promoted products in Canada and an increase in regulatory costs related to the filing of the Bezalip SR IND with the FDA in the US.

Net loss for the twelve-month period ended December 31, 2013 was $6,572,400, compared to a net loss of $3,349,000 for the same period in 2012. This equates to a loss of ($0.13) per share compared to a loss of ($0.09) per share in 2012.

Excluding non-operating expenses for the twelve month period ended December 31, 2013 of $1,808,500; the net loss from operations was $5,078,700 as compared to the prior year net loss from operations of $4,420,700. The increase in the operational loss between these comparable periods represents higher selling, general and administrative costs and amortization of assets (non-cash) offset in part by increases in product margins.

On August 8, 2013, SWK Funding LLC ("SWK"), a wholly-owned subsidiary of SWK Holdings Corporation entered into a credit agreement (the "Credit Agreement") pursuant to which the lenders party thereto provided to Tribute a term loan in the principal amount of US$6,000,000 (the "Loan") which may be increased by an additional US$2,000,000 at the Company's request on or before December 31, 2014. In connection with this loan, Tribute exercised its rights under its loan and security agreement with MidCap to prepay the outstanding balance of the Company's term loan with MidCap. On February 4, 2014, pursuant to the terms of the Credit Agreement, SWK advanced the Company the remaining US$2,000,000 in available funds. All terms under the Credit Agreement apply to the additional loan.

The Company's cash and cash equivalents position amounted to $2,813,500 at December 31, 2013 compared to $2,283,900 at December 31, 2012.

About Tribute Pharmaceuticals Canada Inc.

Tribute is an emerging Canadian specialty pharmaceutical company engaged in the acquisition, licensing, development and management of pharmaceutical and healthcare products with its primary focus on the Canadian and US markets.

Tribute markets Cambia® (diclofenac potassium for oral solution), Bezalip® SR (bezafibrate), Soriatane® (acitretin), NeoVisc® (1.0% sodium hyaluronate solution) Uracyst® (sodium chondroitin sulfate solution 2%), and Collatamp G® (gentamicin-impregnated collagen) in the Canadian market. Additionally, the Company holds an exclusive license for Bezalip® SR in the US and its proprietary products NeoVisc® and Uracyst® are commercially available and are sold globally through various international partnerships.

For further information on Tribute visit the Company's website: http://www.tributepharma.com.

Tribute Pharmaceuticals' Forward-Looking Statement

This press release contains certain forward-looking statements about Tribute as defined in the Private Securities Litigation Reform Act of 1995, which statements can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "anticipate", "estimate", "predict", "plan" or "continue" or the negative thereof or other variations thereon or comparable terminology referring to future events or results. Forward-looking statements, by their nature, are subject to risks and uncertainties, Tribute's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including statements regarding our expectations regarding clinical trials, the timing of clinical results, development timelines and regulatory filings and submissions for our product candidates, general economic conditions, the ability of Tribute to successfully integrate operations, and the timing of expenditures and expansion opportunities, any of which could cause actual results to vary materially from current results or anticipated future results. See Tribute's reports filed with the Canadian Securities Regulatory Authorities and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ materially from results referred to in forward-looking statements. Tribute assumes no obligation to update the information contained in this press release to update forward-looking statements to reflect changed assumptions, the occurrence of anticipated events or changes in future operating results, financial condition or business over time.

Bezalip®SR and Soriatane® are registered trademarks and under license from Actavis Group PTC ehf Cambia® is a registered trademark and under license from Depomed, Inc.

Collatamp G® is a registered trademark and under license EUSA Pharma (Europe) Limited.

For further information on Tribute, visit http://www.tributepharma.com.

                   (formerly Stellar Pharmaceuticals Inc.)
                               BALANCE SHEETS

                      (Expressed in Canadian dollars)
                                                     As at            As at
                                              December 31,     December 31,
                                                      2013             2012
                                          ----------------- ----------------
Cash and cash equivalents                   $    2,813,472    $   2,283,868
Accounts receivable, net of allowance of
 $nil (2012 - $nil)                                591,766        1,205,087
Inventories                                      1,044,831        1,000,557
Taxes recoverable                                  651,791          261,400
Loan receivable                                     15,814           15,814
Prepaid expenses and other receivables             165,886          118,910
Current portion of debt issuance costs,
 net                                                91,100          185,403
                                          ----------------- ----------------
  Total current assets                           5,374,660        5,071,039
Property, plant and equipment, net               1,089,919        1,159,375
Intangible assets, net                           9,717,173       10,883,179
Goodwill                                         3,599,077        3,599,077
Debt issuance costs, net                           253,712          115,862
                                          ----------------- ----------------
  Total assets                              $   20,034,541    $  20,828,532
                                          ----------------- ----------------
                                          ----------------- ----------------

Accounts payable and accrued liabilities    $    3,284,756    $   5,455,664
Current portion of long term debt                  204,700        1,305,840
Warrant liability                                2,966,714          202,213
Other current liability                             38,156                -
                                          ----------------- ----------------
  Total current liabilities                      6,494,326        6,963,717
Long term debt                                   5,640,102        1,815,791
Deferred tax liability                                   -          314,900
                                          ----------------- ----------------
  Total liabilities                             12,134,428        9,094,408
                                          ----------------- ----------------
                                          ----------------- ----------------

Contingencies and commitments

Capital Stock
Unlimited - Non-voting convertible
 redeemable and retractable preferred
 shares with no par value
Unlimited - Common shares with no par
  Common shares 51,081,238 (2012 -
   39,610,042)                                  19,947,290       17,589,957
Additional paid-in capital options               2,286,890        1,867,723
Accumulated other comprehensive loss               (38,156)               -
Deficit                                        (14,295,911)      (7,723,556)
                                          ----------------- ----------------
Total shareholders' equity                       7,900,113       11,734,124
                                          ----------------- ----------------
Total liabilities and shareholders' equity  $   20,034,541    $  20,828,532
                                          ----------------- ----------------
                                          ----------------- ----------------
                  (formerly Stellar Pharmaceuticals Inc.)
                        STATEMENTS OF OPERATIONS AND
                            COMPREHENSIVE (LOSS)
                      (Expressed in Canadian dollars)

                      For the Years Ended December 31,

                                                     2013              2012
                                         ----------------- -----------------
                                         ----------------- -----------------
Licensed domestic product net sales        $    8,598,385    $    8,322,945
Other domestic product sales                    3,366,374         2,494,359
International product sales                     1,277,678         1,525,479
Royalty and licensing revenues                    197,924                 -
                                         ----------------- -----------------
Total revenues                                 13,440,361        12,342,783
                                         ----------------- -----------------
                                         ----------------- -----------------

Cost of sales
Licensor sales and distribution fees            5,844,494         5,916,845
Cost of products sold                           1,541,662         1,220,716
Write down of inventories                          56,935            36,345
                                         ----------------- -----------------
Total cost of sales                             7,443,091         7,173,906
                                         ----------------- -----------------
Gross Profit                                    5,997,270         5,168,877
                                         ----------------- -----------------

Selling, general and administrative             9,830,132         8,870,609
Amortization                                    1,245,846           718,981
                                         ----------------- -----------------
Total operating expenses                       11,075,978         9,589,590
                                         ----------------- -----------------
                                         ----------------- -----------------
(Loss) from operations                         (5,078,708)       (4,420,713)

Non-operating income (expenses)
Change in warrant liability                      (399,217)          247,486
Cost of extending the warrant expiration                -          (135,157)
Change in fair value of contingent
 consideration                                          -            79,724
Research and development                                -           (21,402)
Loss on disposal of intangible asset             (161,200)                -
Loss on extinguishment of loan                   (620,835)                -
Accretion expense                                (103,775)         (140,154)
Interest expense                                 (527,079)         (253,143)
Interest income                                     3,559            13,940
                                         ----------------- -----------------
(Loss) and comprehensive (loss) before
 tax                                           (6,887,255)       (4,629,419)
Current income tax recovery                             -            71,153
Deferred income tax recovery                      314,900         1,209,300
                                         ----------------- -----------------
Net (loss) for the year                        (6,572,355)       (3,348,966)
                                         ----------------- -----------------
                                         ----------------- -----------------

Unrealized loss on derivative instrument,
 net of                                           (38,156)                -
                                         ----------------- -----------------
                                         ----------------- -----------------
Total comprehensive loss                   $   (6,610,511)   $   (3,348,966)
                                         ----------------- -----------------
                                         ----------------- -----------------

Loss Per Share
  - Basic                                  $        (0.13)   $        (0.09)
                                         ----------------- -----------------
                                         ----------------- -----------------
  - Diluted                                $        (0.13)   $        (0.09)
                                         ----------------- -----------------
                                         ----------------- -----------------
Weighted Average Number of Common
Shares Outstanding
  - Basic                                      49,169,414        39,167,419
                                         ----------------- -----------------
                                         ----------------- -----------------
  - Diluted                                    49,169,414        39,167,419
                                         ----------------- -----------------
                                         ----------------- -----------------
                  (formerly Stellar Pharmaceuticals Inc.)
                          STATEMENTS OF CASH FLOWS
                      (Expressed in Canadian dollars)

                      For the Years Ended December 31,

                                                     2013              2012
                                       ------------------- -----------------
                                       ------------------- -----------------
Cash flows from (used in) operating
Net (loss)                               $     (6,572,355)   $   (3,348,966)
Items not affecting cash:
 Deferred income tax recovery                    (314,900)       (1,209,300)
 Amortization                                   1,288,509           772,012
 Change in warrant liability                      399,217          (247,486)
 Cost of extending the warrant
  expiration                                            -           135,157
 Change in fair value of contingent
  consideration                                         -           (79,724)
 Stockbased compensation                          419,167           589,893
 Accretion expense                                103,775           140,154
 Loss on disposal of intangible asset             161,200                 -
 Loss of extinguishment of loan                   620,835                 -
 Change in non-cash operating assets
  and liabilities
                                               (1,643,044)        1,690,533
                                       ------------------- -----------------
Cash flows (used in) operating
 activities                                    (5,537,596)       (1,557,727)
                                       ------------------- -----------------

Cash flows (used in) investing
 Additions to property, plant and
  equipment                                       (26,795)          (49,272)
 Payment of contingent liabilities               (460,000)          (40,000)
 Increase in intangible assets                    (33,345)          (42,902)
 Increase in licensing agreements                       -          (750,000)
 Cash cost of acquisitions                              -          (425,000)
                                       ------------------- -----------------
Cash flows (used in) investing
 activities                                      (520,140)       (1,307,174)
                                       ------------------- -----------------

Cash flows from (used in) financing
 Financing costs deferred                        (305,227)         (341,489)
 Long term debt repayment                      (3,386,630)         (217,569)
 Long term debt issued                          6,084,437         3,500,000
 Units issued                                   4,713,787                 -
 Debt extinguishment costs                       (348,420)                -
 Share issuance costs                            (436,966)                -
                                       ------------------- -----------------
Cash flows from financing activities            6,320,981         2,940,942
                                       ------------------- -----------------

Changes in cash and cash equivalents              263,245            76,041
Change in cash due to changes in
 foreign exchange                                 266,359           (20,146)
Cash and cash equivalents, beginning of
 year                                           2,283,868         2,227,973
                                       ------------------- -----------------

Cash and cash equivalents, end of year   $      2,813,472    $    2,283,868
                                       ------------------- -----------------
                                       ------------------- -----------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
SYS-CON Events announced today that Impiger Technologies will exhibit in Booth #109 at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Impiger Technologies is a world-class, enterprise software product engineering company specializing in Mobile Application Development, Cloud Applications, Microsoft Technology Solutions, Web Technology and Telecom Services. Impiger Technologies helps enterprises improve busi...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

SYS-CON Events announced today that Cemware will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Use MATLAB functions by just visiting website mathfreeon.com. MATLAB compatible, freely usable, online platform services. As of October 2016, 80,000 users from 180 countries are enjoying our platform service.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Digitization is driving a fundamental change in society that is transforming the way businesses work with their customers, their supply chains and their people. Digital transformation leverages DevOps best practices, such as Agile Parallel Development, Continuous Delivery and Agile Operations to capitalize on opportunities and create competitive differentiation in the application economy. However, information security has been notably absent from the DevOps movement. Speed doesn’t have to negat...