TyraTech, Inc. Trading Update (5478Y)
December 02 2014 - 2:01AM
UK Regulatory
TIDMTYR TIDMTYRU
RNS Number : 5478Y
TyraTech, Inc.
02 December 2014
2 December 2014
TyraTech, Inc.
("TyraTech" or the "Company")
Trading Update
TyraTech, Inc. (AIM: TYR and TYRU), a life sciences company
focusing on nature-derived insect and parasite control products,
provides the following trading update.
Highlights
-- Vamousse(R) treatment estimated as the second best-selling
head lice brand in Walmart after six months of trading
-- Expanded retail network in USA and UK
-- FY2014 revenue estimated at $4.8m (FY2013 $1.4m)
-- FY2014 revenue from product sales estimated at $2.8m (FY2013: $0.0m)
-- FY2014 net loss before income taxes is estimated to be $4.8m
(FY2013 $4.9m) following investment into UK product launch
-- Ten products launched in 2014
-- 21 granted patents and 50 pending patent applications
In line with the Company's planned expansion strategy, TyraTech
launched ten new products in 2014 in the USA and entered the UK
market for the first time. In particular, its Vamousse(R) brand,
mousse treatment, benefited from a very successful launch in all
4,100 Walmart stores in the USA, estimated to become, after only
six months in the market, the second best-selling head lice brand
at the retailer.
Building on this positive momentum, the Company has continuously
sought to further expand its distribution network in the USA as
well as in the UK. In the UK, Superdrug has now decided to carry
Vamousse products in all of its stores (over 800). In addition to
recent product listings with Boots, Sainsbury's and Tesco, the
Company has added further UK distribution through Rowlands (over
400 stores) and 1,800 distribution points in independent
pharmacies. In the USA, following the successful launch at Walmart,
advanced discussions are being held with major pharmacy retail
chains as well as with grocery chains, in order to significantly
expand distribution further in 2015.
Based on the successful launch of its products in the US and UK
markets, the Directors believe that the Company will generate $2.8
million in product sales in 2014 (FY2013: $0.0m) and total revenues
of $4.8 million. Whilst representing significant progress, this
estimate is below market expectations of $6m. The shortfall in
anticipated 2014 revenues is due in large part to a decision by
certain new retailers in the USA to delay the review of the
Vamousse treatment product from the end of 2014 until the early
part of 2015 in order to better conform to their internal line
review schedule and ensure maximum impact for the launch.
In addition to these delays, there has also been a slowdown in
the commercial roll-out of the Company's Natunex(TM) products
resulting from Eli Lilly's acquisition of Novartis Animal Health
which has further affected anticipated 2014 revenues. Despite the
late launch in the US the Guardian brand of personal insect
repellents has been sampling positively on Amazon.com and is
expected to benefit from greater distribution in the USA in 2015
and a possible UK launch.
The Directors believe that the net loss at the end of 2014 will
be approximately $4.8 million (2013: $4.9 million). This is greater
than originally anticipated for the full year, predominantly as a
result of increased costs in the second half of 2014 to accelerate
the successful launch of Vamousse(R) in the UK, and also due to the
aforementioned delay to product revenues in the USA. Cash and cash
equivalents are expected to be in the region of $2.6 million at
year end (2013: $0.9 million). The Company is confident that it has
sufficient cash resources to fully fund its commercial plans for
2015 across all of its target territories, being the UK, North
America and Europe.
As we approach the end of 2014, TyraTech has successfully
entered the markets of personal care and animal healthcare, both of
which are characterised by steady growth drivers. The Company has
built the capabilities and business model to capitalise on these
market opportunities and has a clear focus on monetisation and
creating value for its shareholders. The Directors firmly believe
that the accelerated investment made during 2014 has seen the
foundations laid for strong growth in 2015 and beyond.
Additionally, TyraTech has a strong pipeline of development
products which will enrich the range of offering under the Vamousse
and Guardian range and will expand the Company's business in animal
health.
Chief Executive, Bruno Jactel commented: "TyraTech has
introduced ten new products to the market in 2014 in both the USA
and the UK, securing listings and partner relationships with a
number of well-known retailers and generating substantial revenue
growth. In addition, the Company has a strong and growing pipeline
of new products. These achievements have been made possible by the
continuous support of our employees and shareholders, and now our
customers. We firmly believe the Company has strong growth
potential and that the foundations are in place to realise
significant future value."
For further information please contact:
TyraTech Inc.
Alan Reade, Non-Executive Chairman Tel: +44 7841978709
Bruno Jactel, Chief Executive Officer Tel: +1 919 415 4340
SPARK Advisory Partners Limited, Nominated Adviser
Matt Davis / Mark Brady Tel: +44203 368 3552
Tel: +44203 368 3551
Allenby Capital Limited , Joint Broker
Chris Crawford Tel: +44 20 3328 5656
Whitman Howard Limited, Joint Broker
Ranald Mc-Gregor Smith / Niall Devins Tel: +44 20 7087 4555
Walbrook, Financial PR and IR
Bob Huxford /Guy McDougall Tel: +44 20 7933 8792
This information is provided by RNS
The company news service from the London Stock Exchange
END
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