Blis makes $1.28m loss after sales glitch

By NZPA

Thursday 28th November 2002

A temporary halt in production contributed to a half year loss of $1.28 million for Dunedin-based biotech company Blis Technologies.

The loss to September 30 compared with a $274,000 loss over the same period last year. No dividend will be paid.

Blis, which launched a popular sore throat remedy in May, said the loss was comfortably within its budgeted loss of $1.31 million.

Chairman Murray Doyle said K12 Throat Guard sales had been held up for a couple of months while the Government's medical safety authority reviewed its procedures for handling live bacterial organisms.

Throat Guard is a preventative therapy which replaces bacteria which can cause throat disease with beneficial bacteria.

"As a result of the break in production, stocks became depleted and the company was unable to take advantage of the full demand for the product over the key winter months."

Mr Doyle said Blis was working with regulatory agents in the US, Europe and Australia to hasten the product's registration overseas.

It was also working on other products, including a tooth decay preventative which it hoped to have to market within a year.

Bio Restore, a product targeting oral and intenstinal health, would be launched early next year and a throat spray to complement Throat Guard would be on the market before next winter.

Sales revenue was $182,000 compared with no sales the previous year, and total revenue was $301,000 compared with $105,000 stemming from interest.

Earnings per shares rose to minus 2c per share from 0.4cps last year.

Shareholders' equity fell to $3.9 million from $19.3 million, but this encompassed writedowns of $12.4 million in intellectual property after an accounting decision last year not to capitalise research.

Blis listed in July last year at $1.05. It has strong links with the Otago University, a major shareholder.

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