02/03/2006 - 14:03

Chemeq records $13.6m loss

02/03/2006 - 14:03

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Bentley-based veterinary medical technology company Chemeq Limited posted a half-year net loss of $13.6 million to December 31 2005, as it works its way through the commercialisation process for its technology.

Chemeq records $13.6m loss

Bentley-based veterinary medical technology company Chemeq Ltd has posted a half-year net loss of $13.6 million to December 31 2005, as it works its way through the commercialisation process for its technology.

A company spokesman told WA Business News the result was not unexpected given the stage the company was at with its commercialisation program.

The spokesman also said Chemeq was focused on the long-term, not the short-term.

Ongoing efforts were being made in international markets to commercialise the company's core technology, and success in the area would enable it to supply product in greater quantities and increase revenues, he said.

Chemeq achieved two patents for its chemyde polymeric antimicrobial, a feed additive that supercede antibiotic use, during the period and produced revenues of $1.4 million, up a massive 482 per cent on the previous corresponding period.

Also, during the half, the company continued work to optimise its Rockingham manufacturing facility and achieved improved performance in the range of 72 per cent to 78 per cent of capacity. It hopes to have the plant operating at full capacity in the first quarter of this year.

Sales performance was highlighted by the signing of a $1.4 million order with its key South African distributor, Inviro Animal Health Solutions.

Chemeq's cemeq polymeric antimicrobial has already been approved for sale in South Africa and New Zealand, and Chemeq also has the right to sell the product in Malaysia.

The company is currently in the process of applying for regulatory approval for its core product in numerous other countries around the world, including the United States and countries in Europe.

The company is confident that, despite a drawn out regulatory approval process, registration would be granted in each of the countries in which approval was being sought in a timely manner.

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