October 1st, 2018 – Victoria, British Columbia. IMMUNOPRECISE ANTIBODIES LTD. (“ImmunoPrecise”) (TSX Venture: IPA, Pink Sheets: IPATF) today reports its financial results for Q1 ended July 31, 2018. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.
- During the three months ended July 31, 2018, the Company increased revenues to $2,872,785 from $591,058 in 2017. This represents a 386% increase in revenue, in part, from the acquisitions of U-Protein Express and ModiQuest Research, the Company’s ability to grow its capacity in its core business and expand its market share in Europe, as well as growth in higher revenue services.
- Gross Margin. During the three months ended July 31, 2018, the Company increased its gross margin to $1,567,826 from $46,658 in 2017. In percentage terms, the Company’s gross margin increased to 55% from 8% in 2017. The lower gross margin in 2017 was mostly attributable to the fact that the Company increased its staffing levels, made salary adjustments and incurred higher lab operating costs to accommodate greater levels of activity in 2017, which drove down the gross margin.
- Net Loss. The Company recorded a net loss of $1,102,362 during the three months ended July 31, 2018, compared to net loss of $857,832 for three months ended July 31, 2017. The net loss increased in 2018, primarily as a result of the acquisitions of U-Protein and ModiQuest, which required higher expenses in all facets of the business in order to manage a global landscape. The Company continues to invest in research and development as it broadens the breadth and value of its intellectual property assets.
Growth Initiatives in Fiscal 2018:
- European Acquisitions. ImmunoPrecise acquired two profitable companies within the EU during the Fiscal year of 2018, U-Protein Express (August, 2017) and ModiQuest Research (April, 2018). These acquisitions will enhance ImmunoPrecise’s position as a leading, full-service antibody CRO, by strengthening its ability to partner with clients across the entire antibody discovery, manufacturing, and engineering continuum. These acquisitions also enhance ImmunoPrecise’s ability to achieve its longer-term goals by scaling to meet demand, and by expanding our global biotechnology and pharmaceutical client base.
- Full-Service B-Cell Facility. During the Fiscal year of 2018, ImmunoPrecise expanded its B-cell offerings in both North America and Europe. This expansion will enable the ImmunoPrecise family of companies to increase its capacity for B-cell services supporting therapeutic antibody development, provide a client-centric focus with worldwide production centers, and help to bring leading antibody discovery services to more pharmaceutical and biotech companies around the world.
“We believe our strong revenue growth reflects our progress toward the goal of aligning our Companies’ unique continuum of services, supporting clients from target selection through pre-clinical studies, with an ever-strong and growing, global market. There has been an impressive increase in the scale of services requested by prospects and clients, further confirming the value of investing in our global presence to emerge as a leader in the full-service, antibody discovery and development sector,” stated CEO and President, Dr. Jennifer Bath. “We are happy with our second-quarter performance, the integration of our new production sites, and we are optimistic about continued growth in revenue and shareholder value.”
About ImmunoPrecise. ImmunoPrecise is a full-service, therapeutic antibody discovery company focused on the next generation of antibody discovery, to deliver the most therapeutically-relevant antibodies, in a shorter period of time, with the highest probability of succeeding to clinical trials.
ImmunoPrecise operates from state-of-the-art laboratory facilities located at the Vancouver Island Technology Park in Victoria, British Columbia, in collaboration with its wholly-owned subsidiary operations at U-Protein Express and ModiQuest Research, both in the Netherlands. The Company operates globally to offer antibody services from target analysis to pre-clinical studies.
The services offered to clients include antibody discovery against a broad spectrum of antigens, including challenging targets. Amongst these services, the Company offers hyridoma production, B-cell services, and a variety of phage display platforms. The Company also provides a broad range of supporting services including immunologically-based assays, recombinant protein manufacturing, humanization, optimization, stable cell line development, and advanced solutions to challenges faced by clients in antibody-related research and development. The antibodies produced by ImmunoPrecise target a wide variety of therapeutic, diagnostic and research applications.
For further information please contact:
ImmunoPrecise Antibodies Ltd.
Jennifer Bath, CEO
3204-4464 Markham Street.
Victoria, BC V8Z 7X8
For investor relations please contact:
Contact Financial Corp.
1450 – 701 West Georgia St.
Vancouver, BC V7Y 1G5
Forward Looking Information
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute “forward-looking statements” within the meaning of applicable Canadian securities laws. The Company uses words such as “may”, “would”, “could”, “will”, “likely”, “expect”, “believe”, “intend” and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by ImmunoPrecise in light of its experience and its perception of historical trends, current conditions and expected future developments. However, whether actual results and developments will conform to ImmunoPrecise’s expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause ImmunoPrecise’s actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors include, among other things, actual revenues and earnings for IPA being lower than anticipated, and those risks and uncertainties described in ImmunoPrecise’s annual management discussion and analysis for the fiscal year ended April 30, 2018 which can be accessed at www.sedar.com. The “forward-looking statements” contained herein speak only as of the date of this press release and, unless required by applicable law, ImmunoPrecise undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. release.