Blis Technologies posts loss on write-downs

By NZPA

Wednesday 12th June 2002

Dunedin-based biotechnology company Blis, which has just launched its first consumer product, has posted a wider net loss of $14.33 million for the year ended March.

Last year Blis posted a $156,000 net loss, three months prior to listing in July.

The company's operating deficit was $1.87 million, before a $12.5 million unusual loss related to a change in accounting policy, chairman Murray Doyle said in a statement today.

Blis has started writing off intellectual property, including patents, trademarks, and acquired scientific research.

"The new policy presents the company's balance sheet in a very conservative manner, but does not reflect any change in the directors' view of the company's prospects and opportunities going forward.

"In fact, our financial position is over $1 million better than forecast in the listing profile, in spite of the bringing forward of some spending into the current financial year," Mr Doyle said.

"This was done to ensure a product launch as early as possible, and to take advantage of the seasonal occurrence of sore throats this winter."

The recently-launched Blis K12 Throat Guard -- a dietary supplement claiming to support the throat's natural defences against harmful bacteria -- had achieved better than expected sales from almost 100 percent pharmacy penetration.

Sales revenue increased to $244 million, from $38 million, and shareholders' equity rose to $5.24 million from $3.85 million.

Blis Technologies was formed in June 2000 to pursue the commercialisation of the bacteriocin-like inhibitory substances (Blis).

"It is clear that the concept of using Blis-producing protective bacteria to help prevent undesirable bacterial infections is one of considerable appeal to both consumers and health professionals," Mr Doyle said.

"This bodes extremely well for our pipeline of future products, on which favourable progress is also being made."

Blis is continuing work on products including a lozenge targeting tooth decay, which is currently been trialled, and treatments for bovine mastitis, middle ear infections, and screening for further opportunities among the collection of Blis-producing organisms owned by the company.

Blis shares debuted amid great hype at $1.05 in July 2001, and traded today down 2c at 43c.

Its major shareholders include Otago University, with a 20 percent stake, Southern Capital Ltd with 15 percent, and South Island entrepreneur Howard Paterson with 11 percent.

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