Welcome!

News Feed Item

Delivra Reports Record Q3 Revenues and Licensing Agreement for the Transdermal Delivery of Medical Cannabis During the Quarter

TORONTO, ON--(Marketwired - November 30, 2016) - Delivra Corp. (TSX VENTURE: DVA) ("Delivra" or the "Company") reported its financial results for the three and nine month periods ended September 30, 2016. All figures are reported in CDN dollars ($), unless otherwise indicated. Delivra's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

Q3 2016 Highlights:

  • Solidified the Company's position as having the #1 Selling Natural Pain Cream in Canada and the #1 Selling Nerve Pain Cream in Canada (adapted from Nielson data, April 2016);
  • Completed a licensing agreement with Canopy Growth Corporation (TSX: CGC) for the transdermal delivery of medical cannabis;
  • Q3-2016 generated revenues of $630,265, a 42% increase over Q3-2015. Pain and nerve sales are seasonal and historically the slowest during the third quarter of each year;
  • Filed four permanent patents during the quarter, bringing the total number of patents pending to six and the total number of permanent patent filings to four;
  • Secured an additional $495,000 of government funding relating to the U.S. market entry in the form of unsecured, interest-free loans;
  • Received proceeds on interest-free government loans in the amount of $280,397, and after quarter end, an additional $653,518. Proceeds received were used for scientific research on certain transdermal products and U.S. market entry expenditures;
  • Raised $2,020,900 through the issuance of convertible debentures on a non-brokered private placement;
  • R&D development of the transdermal delivery potential of the very popular pain management drug, celecoxib;
  • Starting in June and throughout Q3-2016, investment made in building brand awareness in the U.S.; and
  • Subsequent to quarter end, the Company announced its successful pre-clinical work with the natural ingredient berberine for the prevention and treatment of cardiovascular disease related to high cholesterol and triglyceride levels.

"Our strategy of improving the safety and efficacy of existing drugs using Delivra's proprietary transdermal delivery technology platform continues to drive a portfolio of robust pharmaceutical and natural products in our pipeline. During the quarter, we successfully grew our LivRelief suite of products in Canada, while leveraging the value of our delivery system platform, including diabetes and innovative cannabis-based products. The completion of a licensing agreement with Canopy Growth Corporation, our second licensing agreement for the transdermal delivery of medical cannabis, addresses the growing demand for topical cannabis as a therapeutic option for a range of conditions. Through this collaboration, Delivra will offer consumers a unique product suite. We are excited at the opportunity of licensing these natural and Rx products globally," said Dr. Joseph Gabriele, CEO of Delivra Corp.

Results of Operations

Revenues

Revenue for Q3-2016 was $630,265, a 42% increase compared to Q3-2015 of $444,866. Revenues for the first nine months of 2016 were $2,734,768, an increase of 32% compared to the same period in 2015 of $2,071,270. The main drivers of this growth for the first nine months of 2016 were:

  1. 34% increase in adjusted unit sales over the comparative period of the Company's pain products in Canada, including repeat purchases and new customer acquisitions resulting from the Company's on-going marketing and advertising efforts, and
  2. 54% increase in unit sales over the comparative period of the Company's Nerve Pain product in Canada.

This increase in nerve product sales is a result of a planned reallocation of marketing and advertising expenditures beginning in Q2-2016. The nerve product advertising represented an investment by the Company in the latent growth potential of the product, which the Company believes is underrepresented in the overall revenue mix by comparison to the flagship Pain product. While this may result in lower revenue in the short-term, versus the same advertising spending allocation to Pain product, it strengthens the brand, solidifies the leadership position of Nerve, diversifies the customer base, and provides a broader platform for continued forward growth.

Gross Profit

Gross Profit for Q3-2016 was $406,919, a 45% increase compared to Q3-2015 of $280,032. This is a result of increased revenues and efficiencies in the production process during the year (65% in Q3-2016 versus 63% in Q3-2015). Gross Profit for the first nine months of 2016 was up 36% against the comparable prior period, at $1,864,363 versus $1,374,785 in the first nine months of 2015. Gross margin was 68% in the first nine months of 2016 versus 66% in the first nine months of 2015.

Operating Expenses

Operating expenses for Q3-2016 were $2,334,223, up from $1,026,681 in Q3-2015. Operating expenses for the first nine months of 2016 were $5,596,783, versus $2,803,483 in the first nine months of 2015. The increase was mainly a result of higher marketing and selling costs associated with successful growth and brand building investments in Canada and initial US test marketing costs. In Canada, in the first nine months of 2016, the Company spent approximately $200,000 more in television advertising, which generated an additional $489,578 in gross margins, compared to the prior period. Sales and marketing salaries increased approximately $110,000 during the year, as a result of diversification and growth initiatives into professional channels (eg. medical and clinical). Lastly, the Company spent approximately $2,125,000 on aggressive US brand building initiatives during the nine-month period. Although the Company will continue with these efforts, it will be on a less aggressive basis in Q4 2016 and 2017, as the Company continues to refine and develop strategies for the US market based on the knowledge gained from these efforts.

Net Loss

The net loss and comprehensive loss for Q3-2016 was $2,246,347 or $0.06 per share versus $772,541 or $0.02 per share for Q3-2015. The net loss and comprehensive loss for the first nine months of 2016 was $4,241,331 or $0.11 per share versus $1,494,435 in the first nine months of 2015 or 0.05. The increased loss occurred from the results of operations discussed above, primarily the investments made in core growth, US expansion, share-based compensation and public company G&A costs. In addition, the loss for the three and nine months includes $266,596 relating to the accretion expense on convertible debentures and fair value change in derivatives related to the convertible debentures.

ABOUT DELIVRA CORP.

Delivra Corp. ("Delivra" or the "Company") 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 LivRelief™ brand, for conditions such as joint and muscle pain, nerve pain, varicose veins, wound healing, and under the LivSport™ brand for sports performance. LivRelief™ products are available in pharmacies, grocery chains, and independent health food stores across Canada, and on-line at www.livrelief.com. LivRelief™ 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 transdermal delivery of repurposing Rx molecules 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.

Further information on Delivra can be found at www.delivracorp.com, www.livrelief.com for Canada and www.livrelief.com/us for the United States.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

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
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...