EX-99 2 ex991.htm EXHIBIT 99.1 exhibit 99.1

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Contact:

Stellar Pharmaceuticals Inc.                   -OR-

Seventh Circle Consulting, LLC  

Peter Riehl, President & CEO

Christine Petraglia           

(800) 639-0643

(646)354-8886

(519) 434-1540         

Arnold Tenney, Chairman

(416) 587-3200


Stellar Pharmaceuticals Announces Profitability for 2007 Third Quarter Financial Results

LONDON, ONTARIO--(MARKET WIRE)—November 8, 2007 -- Stellar Pharmaceuticals Inc. (TSX VENTURE:SLX.V - News) (OTCBB:SLXCF.OB - News) ("Stellar" or "the Company"), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced financial results for the third quarter ended September 30, 2007. All amounts in this press release are in Canadian dollars, rounded to the nearest one hundred dollars and are the result of the use of U.S. generally accepted accounting principles.

Third Quarter 2007 Financial Results and Review

For the three month period ended September 30, 2007 total operating revenues from all sources increased by 43.2% to $615,400 compared to $429,900 in the same period in 2006. Gross profit for the quarter increased 79.1% to $535,000 compared to $298,800 for the same period in 2006. The Company showed a profit for the quarter of $137,500 compared to a loss of $278,800 in the same quarter of 2006.

For the nine month period ended September 30, 2007 total operating revenues from all sources increased 20.8% to $1,589,600 compared to $1,316,100 in the same period of 2006. Gross profit for this nine month period grew by 30.6% to $1,267,500 from $970,500 for the same period in 2006. Stellar’s net loss for the nine month period was reduced by 75.4% to $212,500 compared to a loss of $865,100 in 2006.

NeoVisc sales in Canada grew by 19.9% for the quarter and 10.0% for the nine month period ending September 30, 2007 over the comparable periods for 2006. While international sales for NeoVisc were up 23.9% for the quarter and 90.8% for the nine month period compared to the same periods in 2006. Uracyst sales in Canada grew by 26.8% for the quarter and 19.9% for the nine month period compared to the same periods in 2006.

As previously announced, Stellar’s United States Licensee, Watson Pharmaceuticals is in the process of conducting a Canadian-based, placebo controlled, pilot clinical study in interstitial cystitis patients, which is expected to end in early 2008. The results of this study will be utilized in designing the pivotal Phase III safety and efficacy trial, slated to commence in 2008, the data from which will be submitted to the FDA in support of marketing approval.  

Peter Riehl, Stellar’s President & CEO commented, “We are extremely pleased to see the Company profitable for the quarter and moving towards positive cash flow. Stellar has no debt on its balance sheet and over $3 million in cash and cash equivalents, which puts the Company in an excellent position to accelerate future market growth domestically and internationally. Both NeoVisc and Uracyst continue to gain traction in all markets which is exciting given the number of new markets they will be introduced to in the next nine months.” Mr. Riehl added, “Stellar’s global licensing strategy is now starting to show returns and the Company expects future royalty and licensing revenue to become a growing percentage of total revenues.”



About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada, and in countries around the world through out-license agreements, three products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst® and the Uracyst® Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has an in-licensing agreement for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.



STELLAR PHARMACEUTICALS INC.


CONDENSED BALANCE SHEETS

(Canadian Funds)

  

 

 

 

 

 As at

 

 

 As at

 

 

ASSETS

 

Sep/30/07

 

 

Dec/31/06

CURRENT

 

 

 

 

 

 

 

Cash and cash equivalents

$ 

        3,145,355 

 

 $ 

        3,515,193 

 

Accounts receivable, net of allowance $0 (2005 - $0)

 

              299,434 

 

 

              199,704 

 

Inventories

 

              219,156 

 

 

              274,597 

 

Prepaid, deposits and sundry receivables

 

              191,902 

 

 

                55,407 

 

 

 

 

           3,855,847 

 

 

           4,044,901 

PROPERTY, PLANT AND EQUIPMENT

 

              827,042 

 

 

              853,818 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

                55,893 

 

 

                49,691 

PROMISSORY NOTE

 

                14,945 

 

 

                        - 

 

 

 

$ 

         4,753,727 

 

 $ 

        4,948,410 

 

 

LIABILITIES

 

 

 

 

 

CURRENT

 

 

 

 

 

 

 

Accounts payable

$ 

            257,348 

 

 $ 

           226,026 

 

Accrued liabilities

 

                89,825 

 

 

              135,198 

 

Deferred revenues

 

                11,627 

 

 

                  1,500 

 

 

 

 

              358,800 

 

 

              362,724 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

CAPITAL STOCK

 

 

 

 

 

AUTHORIZED

 

 

 

 

 

  Unlimited    Non-voting, convertible, redeemable, and retractable preferred

 

 

 

 

 

 

             shares with no par value

 

 

 

 

 

  Unlimited    Common shares with no par value

 

 

 

 

 

 

 

 

 

 

 

 

 

ISSUED

 

 

 

 

 

 

23,822,540

Common Shares (2006- 23,819,040)

 

           8,303,054 

 

 

           8,299,554 

 

 

Paid-in capital options  - outstanding

 

              130,316 

 

 

              513,990 

 

 

                                  - expired

 

              605,360 

 

 

              201,322 

Accumulated other comprehensive income (loss)

 

                (2,100)

 

 

                        - 

DEFICIT

 

 

         (4,641,703)

 

 

         (4,429,180)

 

 

 

 

           4,394,927 

 

 

           4,585,686 

 

 

 

$ 

         4,753,727 

 

 $ 

         4,948,410 

 



STELLAR PHARMACEUTICALS INC.


CONDENSED INTERIM STATEMENTS OF OPERATIONS, DEFICITS

AND COMPREHENSIVE INCOME (LOSS)

(Canadian Funds)


(Unaudited)

 

 

For the Three Month

 

 

For the Nine Month

 

 

Period Ended September 30

 

 

Period Ended September 30

 

 

2007

 

 

2006

 

 

2007

 

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

PRODUCT SALES

399,178 

 

$ 

332,423 

 

$ 

1,194,733 

 

$ 

1,025,903 

COST OF GOODS SOLD

               80,474 

 

 

               89,175 

 

 

             301,941 

 

 

             303,652 

MARGIN ON PRODUCT SOLD

             318,704 

 

 

             243,248 

 

 

             892,792 

 

 

             722,251 

ROYALTY AND LICENSING REVENUES

             216,218 

 

 

               97,445 

 

 

             394,834 

 

 

             290,164 

WRITE-DOWN OF OBSOLETE INVENTORY

                       - 

 

 

              (41,949)

 

 

              (20,145)

 

 

              (41,949)

GROSS PROFIT

             534,922 

 

 

             298,744 

 

 

          1,267,481 

 

 

             970,466 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

             441,486 

 

 

             491,784 

 

 

1,451,254 

 

 

          1,571,380 

 

Research and development

               25,662 

 

 

               50,817 

 

 

               83,150 

 

 

             174,310 

 

Amortization

               36,226 

 

 

               38,973 

 

 

             117,285 

 

 

             117,324 

 

 

             503,374 

 

$ 

581,574 

 

 

          1,651,689 

 

 

          1,863,014 

INCOME (LOSS) FROM OPERATIONS

               31,548 

 

 

            (282,830)

 

 

            (384,208)

 

 

            (892,548)

INTEREST AND OTHER INCOME

               105,929 

 

 

                 4,063 

 

 

              172,685 

 

 

27,410 

NET INCOME (LOSS) FOR THE PERIOD

             137,477 

 

 

            (278,767)

 

 

            (212,523)

 

 

            (865,138)

DEFICIT, beginning of period

         (4,779,180)

 

 

         (6,270,776)

 

 

         (4,429,180)

 

 

         (5,684,405)

DEFICIT, end of period

(4,641,703)

 

$ 

(6,549,543)

 

$ 

(4,641,703)

 

$ 

 (6,549,543)

OTHER COMPREHENSIVE INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

                (2,100)

 

 

                       - 

 

 

                (2,100)

 

 

                       - 

COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD

             135,377 

 

 

            (278,767)

 

 

            (214,623)

 

 

            (865,138)

EARNINGS (LOSS) PER SHARE

                   0.01 

 

 

                  (0.01)

 

 

                  (0.01)

 

 

                  (0.04)

WEIGHTED AVERAGE NUMBER OF COMMON

 

 

 

 

 

 

 

 

 

 

 

SHARES OUTSTANDING

        23,822,540 

 

 

        23,472,690 

 

 

        23,821,232 

 

 

        23,530,318 

 



STELLAR PHARMACEUTICALS INC.


CONDENSED INTERIM STATEMENTS OF CASH FLOWS

(Canadian Funds)


(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Month Period

 

 

For the Nine Month Period

 

 

 

 

Ended September 30

 

 

Ended September 30

 

 

 

 

2007

 

 

2006

 

 

2007

 

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS USED IN OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) for the period

 

137,477 

 

 

(278,767)

 

 

(212,523)

 

 

(865,138)

 

Amortization

 

36,226 

 

 

38,973 

 

 

117,287 

 

 

117,324 

 

Issuance of shares and options for services rendered

 

12,916 

 

 

22,909 

 

 

23,865 

 

 

106,380 

 

 

 

 

186,619 

 

 

(216,885)

 

 

(71,371)

 

 

(641,434)

 

Change in non-cash operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(86,762)

 

 

2,438 

 

 

(99,730)

 

 

(67,198)

 

 

Inventories

 

2,924 

 

 

70,733 

 

 

55,441 

 

 

77,339 

 

 

Prepaid, deposits, and sundry receivables

 

(128,444)

 

 

17,972 

 

 

(136,495)

 

 

67,966 

 

 

Promissory note

 

2,100 

 

 

- 

 

 

(14,945)

 

 

- 

 

 

Accounts payable and accrued liabilities

 

164,537 

 

 

(66,745)

 

 

(14,051)

 

 

(416,272)

 

 

Deferred revenues

 

11,627 

 

 

2,400 

 

 

10,127 

 

 

(40,997)

 

 

 

 

152,601 

 

 

(190,087)

 

 

(271,024)

 

 

(1,020,596)

CASH FLOWS USED IN INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

(80,115)

 

 

(32,981)

 

 

(89,495)

 

 

(59,882)

 

 

Additions to other assets

 

(5,695)

 

 

- 

 

 

(7,219)

 

 

- 

 

 

 

 

(85,810)

 

 

(32,981)

 

 

(96,714)

 

 

(59,882)

CASH FLOWS USED IN FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock

 

- 

 

 

- 

 

 

- 

 

 

48,900 

EFFECT OF FOREIGN EXCHANGE ON CASH

 

(2,100)

 

 

 

 

 

(2,100)

 

 

 

CHANGE IN CASH AND CASH EQUIVALENTS

 

64,691 

 

 

(223,068)

 

 

(369,838)

 

 

(1,080,478)

CASH AND CASH EQUIVALENTS, beginning of period

 

3,080,672 

 

 

1,300,245 

 

 

3,515,193 

 

 

2,108,755 

CASH AND CASH EQUIVALENTS, end of period

$ 

3,145,355 

 

$ 

1,077,177 

 

$ 

3,145,355 

 

$ 

1,077,177