TIDMTYR TIDMTYRU
RNS Number : 7983S
TyraTech, Inc.
29 September 2014
29 September 2014
TyraTech, Inc.
("TyraTech" or the "Company")
Interim Results for the six months ended 30 June 2014
TyraTech Inc. (AIM: TYR, and TYRU), a life sciences company
focusing on nature-derived insect and parasite control products,
today announces its interim results for the six month period ended
30 June 2014.
Operational Highlights:
-- Launch of Vamousse(TM) head lice treatment in over 4,000
Walmart stores and online with Walmart.com in the USA;
-- Launch of Vamousse treatment and preventative shampoo online
with amazon.com, walgreens.com, and drugstore.com;
-- Established a UK branch and engaged Ceuta Healthcare to
handle all marketing, commercialisation and logistics in the UK
ahead of planned launch of Vamousse in the UK in H2 2014;
-- Launch of six products with Novartis Animal Health under the
Natunex brand for control of insects in production animal
housing;
-- Launch of Guardian personal mosquito and tick repellent
online with amazon.com in the USA; and
-- Two new patents granted by the United States Patent and
Trademark Office for the Company's novel pest control
compositions.
Financial Highlights:
-- On 21 February 2014 the Company issued 37,391,763 of new
common stock shares of $0.001 each for a cash consideration of
GBP1.87 million ($3.1 million) representing GBP1.7 million ($2.9
million) net of cash expenses, primarily to fund the launch of
Vamousse in Walmart in the USA and pre-launch expenses;
-- Total revenues from operations increased by 67% to $1.3
million (2013: $0.8 million) as the result of only three months of
commercialisation of Vamousse Treatment mousse at Walmart in the
USA and the launch of the six new Novartis Animal Health products
under the Natunex brand;
-- Product sales increased to $0.9 million (2013: $0) from the Vamousse and Natunex sales;
-- Collaborative revenue decreased by 49% to $0.4 million for
the first half of 2014 (2013: $0.8 million) primarily from a
transfer of staff from TyraTech to Envance Technologies, LLC;
-- Gross profit increased by 233% to $0.8 million (2013: $0.3
million) from the effect of new product commercialisation;
-- Overall operating expenses increased 41% to $3.5 million (2013: $2.5 million) from increased sales/marketing expenses incurred ahead of the commercialisation of Vamousse Treatment mousse and shampoo products in both the USA and UK, including costs associated with establishing the UK branch;
-- Loss from operations was $2.6 million for the first half of
2014 (2013: $2.2 million net loss) resulting primarily from the
timing of sales/marketing expenses ahead of the product launch in
the USA and the UK;
-- Net loss before and after taxes increased to $3.1 million
(2013: $2.8 million), primarily from the re-set of the AMVAC
warrant agreement strike price from the February, 2014 fund
raise;
-- Cash and cash equivalents were $0.6 million at 30 June 2014
($3.7 million at 30 June 2013 and $0.9 million at 31 December
2013).
Post period end
-- On 31 July 2014 the Company issued 50,000,000 new common
stock shares for a cash consideration of GBP3.5 million ($6.0
million) representing GBP3.3 million (approximately $5.7 million)
net of cash expenses, primarily to launch the Vamousse products in
the UK and prepare for future expansion;
-- Successful launch of Vamousse treatment and preventative
shampoo with major retailers in the UK market (Boots, Tesco,
Superdrug, Sainsbury's and independent pharmacies) supported by
strong marketing campaign.
Bruno Jactel, Chief Executive Officer, commented:
"This is the first year since its incorporation that TyraTech
has launched a number of products under its own brands. We have
made significant headway with large distributors in the USA and in
the UK and have backed our launch plans with strong and impactful
marketing campaigns. The customer feedback has been excellent so
far and we feel confident that our products will bring safe and
effective solutions to the current issues that customers are facing
in fighting head lice, ticks and mosquitos."
For further information:
www.tyratech.com
TyraTech Inc.
Bruno Jactel, Chief Executive Officer Tel: +1 919 415 4340
R. Daniel Williams, Chief Financial Officer Tel: + 1 919 415 4285
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
Chief Executive Officer's Statement
The six month period up to 30 June 2014 saw the Company
successfully launch 8 new products with major retailers in the USA
directly and through our partnership with Novartis Animal
Health.
In the USA our Vamousse head lice treatment was launched in
March in more than 4,000 Walmart stores and sales growth was strong
in the run up to the back-to-school peak season, reaching the
position of one of the top head lice control brands on the Walmart
shelves with customer satisfaction with the quality of the Vamousse
Treatment remaining high. In addition, we were able to expand the
Vamousse product line, by launching a preventative shampoo in the
second part of the year via online retailer amazon.com and
drugstore.com. In parallel, we have been working to expand our
distribution network, first with independent pharmacies, including
both regional pharmacy chains (Lewis Drug, Bartell, Rochester Drug)
and a national distributor (McKesson); and secondly, we are
participating in the onboarding process with several major pharmacy
chains in the USA, to place our products ahead of next year. We are
optimistic that Vamousse will benefit from a much larger
distribution network in 2015.
Following the successful launch in the USA, we were able to
launch Vamousse head lice treatment and protection shampoo in the
UK market faster than anticipated. Following the end of the period
under review, we have been successful in securing product listings
with Boots, Superdrug, Tesco and Sainsbury's. As the phased
roll-out continues, this should ensure growing exposure to a
significant customer base which, we hope, will enable us to achieve
rapid uptake for our products in a very competitive
environment.
Despite some production delays, and post-period under review, we
were able to launch our two Guardian mosquito and tick personal
repellent products in the USA market through amazon.com, albeit at
the end of the season. The prime objective for this year has been
to prepare for the line review organised by distributors during the
3(rd) and 4(th) quarter and to gain endorsement from key opinion
leaders, frequent users, and outdoor enthusiasts.
Novartis launched six new TyraTech products under the Natunex
brand with distributors and producers of cattle, swine and poultry.
On 22 April 2014 Eli Lilly (NYSE: LLY) announced that it had
entered into an agreement to acquire Novartis Animal Health. We are
expecting more clarity in relation to this acquisition by late 2014
or early 2015.
Outlook
This has been a breakthrough year for TyraTech and is the first
year that TyraTech has launched a number of products under its own
brands. We have made significant headway with large distributors in
the USA and in the UK and backed our launching plans with strong
and impactful marketing campaigns. We feel confident that our
products will bring safe and effective solutions to the current
issues customers are facing in fighting head lice, ticks and
mosquitos.
The results for the first half of the year reflect a strong
uptake for Vamousse at Walmart, even though it only represents
three months of sales outside of the peak season. These results do
not take into account the launch in the UK which will have an
impact in the second half of the year. We anticipate strong second
half sales growth, attributable to continued positive momentum at
Walmart and the accelerated launch of Vamousse in the UK, which
will offset the earlier delays to the launch of Guardian products
in the USA. This should position us well to achieve full year
revenue targets in line with Directors' expectations. Consistent
with the accelerated UK launch, there will be an increase in full
year 2014 costs, in line with Directors' expectations, to reflect
the incremental marketing spend and working capital associated with
a product launch in a new geography.
The Board was delighted by the support received from both
existing and new shareholders who participated in the successful
fundraising in July which raised GBP3.3m (approximately $5.7
million) net of expenses for the company. These proceeds have
allowed and will continue to allow the company to accelerate the
commercialisation of its valuable intellectual property.
We are making excellent progress in the distribution and
marketing of our products in the USA and in the UK, but more
importantly, we are actively preparing for an extended distribution
network for 2015, that should help us reach a higher market share
in 2015.
Bruno Jactel
Chief Executive Officer
29 September 2014
Financial Review
Revenue
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