Bentley-based animal pharmaceutical company Chemeq Ltd has reported a loss $32.6 million for the year ended 30 June 2006.
Bentley-based animal pharmaceutical company Chemeq Ltd has reported a loss $32.6 million for the year ended 30 June 2006.
The company also posted a revenue of $4.15 million and held cash of approximately $28.8 million at 30 June 2006.
Commenting on the results, Chemeq Chief Executive Officer David Williams said he was pleased that with these financial results Chemeq was able to meet the revenue and cash covenants set out in the fianl milestone covenant in the convertible bond deed poll. "Chemeq has been transformed in the last 12 months and that transformation continues," he said.
"The new board and senior management team have overhauled Chemeq's strategy and will now focus the company on its core skills in research and development and new product commercialisation and will seek to pursue global commercialisation of its intellectual property and products through strategic partnerships.
"We have also made hard decisions to implement this strategy. We have announced a major reorganisation of our business that will lead to a significant reduction in the company's annual cost structure and realignment of our operations to fit our new strategy.
"These significant changes place Chemeq in the best possible position to achieve its goal of successfully and profitably commercialising its products in world markets."
Mr Williams said the recent reorganisation of the business would also ensure that Chemeq remained in a strong financial position in the future given the well known long lead times for new pharmaceutical products to achieve market penetration.
"The Board believes that with its new streamlined organisation structure, strong cash balances, world-class technology and the focus on the development of major strategic partnerships, Chemeq is in a strong position to profitably commercialise its intellectual property and new products over the long-term."
The company earlier this month said it would lay off approximately 50 employees as a part of its new corporate growth strategy.
Along with the redundancies, the company announced plans to move its leased corporate headquarters to the company-owned facility in Rockingham.
Chemeq founder Graham Melrose resigned from the board after 17 years involvement with the company.
At market close, Chemeq's shares were down 1.5 cents to 33.5 cents.
