Ceapro Reports 2017 Third Quarter Business Update and Financial Results

- Recent entry into the cosmeceuticals sector with launch of proprietary line of products - Company continues advancement for expansion into the nutraceutical market - Completion of bio-efficacy study evaluating avenanthramides in exercise-induced inflammation with results expected by year-end - Results from animal studies evaluating bioavailability of impregnated CoQ10 with beta glucan expected Q1 2018

 

EDMONTON, ALBERTA--(Nov. 15, 2017) -Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the "Company") a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, announced today its financial results for the three-month and nine-month periods ended September 30, 2017 and provided an overview of recent operational highlights.

 

Financial Highlights for the Third Quarter 2017

Total sales of $3,600,000 for the quarter ended September 30, 2017 compared to $3,018,000 in Q3 2016;

Gross margin of $1,873,000 for the quarter ended September 30, 2017 compared to $1,893,000 in Q3 2016;

Income from operations of $830,000 for the quarter ended September 30, 2017 compared to $1,051,000 in Q3 2016; and

Net profit after tax of $296,000 for the quarter ended September 30, 2017 compared to $645,000 in Q3 2016.

"As previously announced, we have increased our investments in our technologies as well as accelerated R&D investments in our product pipeline as a step toward our long-term goal of transforming Ceapro from a manufacturing company to a full-fledged biopharmaceutical company," stated Gilles Gagnon, M.Sc., MBA, President and CEO of Ceapro. "On a short-term basis, to further de-risk and expand our base business in cosmeceuticals, we have made a deliberate first step to achieve this through the acquisition of JuventeDC. In addition to potentially bring more financial security, we expect this strategic move to be a catalyst to ultimately ensure our planned transition into large potential markets. Specifically, this will enable Ceapro to reach the end customer for the first time with high-end cosmeceutical formulations utilizing our two value drivers, beta glucan and avenanthramides, and in addition, given the potential to develop dry products using our PGX technology, position us to offer new chemical complexes of beta glucan impregnated with various bio actives to be included into topical cosmeceutical formulations to treat various skin conditions. The hypothesis being that beta glucan will act as a delivery system."

 

"On the financial results, the significant sales increase observed in Q3 2017 over Q3 2016 as well as over Q1 and Q2 2017 is mainly due to increased sales of avenanthramides. We are very pleased with the continued growth of avenanthramides, especially in the hair care sector. Regarding sales of beta glucan, while major orders received at the end of 2015 and delivered during the first two quarters of 2016 have not been repeated yet given the dilution factor involved in final products like facial masks, we are very encouraged by an expected replenishment of beta glucan stocks in Q1 2018, especially for the Asian market," Mr. Gagnon added.