On August 29, 2018 IMMUNOPRECISE ANTIBODIES LTD. ("ImmunoPrecise") (TSX Venture: IPA, Pink Sheets: IPATF) reported its financial results for the year ended April 30, 2018 (Press release, ModiQuest Therapeutics, AUG 29, 2018, View Source [SID1234529248]). The financial statements and related management’s discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
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Financial Highlights:
Revenue. ImmunoPrecise achieved record annual revenue of $5,441,349 in fiscal 2018 compared to $2,630,515 in fiscal 2017. This represents a 106% increase in revenue as a result of its acquisitions of U-Protein Express B.V. ("U-Protein") and ModiQuest Research BV ("ModiQuest"), and its ability to grow its core business and expand into higher revenue service offerings in therapeutic antibody discovery.
Gross Margin. ImmunoPrecise’s gross margin percentage equaled 45% in fiscal 2018 as compared to 54% in fiscal 2017. The decrease in gross margin was mostly attributable to the fact that ImmunoPrecise increased its staffing levels, made salary adjustments and incurred higher lab operating costs to accommodate greater levels of activity which drove down the gross margin.
Net Loss. ImmunoPrecise recorded a net loss of $5,171,103 in fiscal 2018 compared to $5,383,820 in fiscal 2017. The net loss in 2018 was mainly attributable to non-recurring growth-enabling investments made to pursue strategic initiatives.
Growth Initiatives in Fiscal 2018:
European Acquisitions. The U-Protein and ModiQuest acquisitions added state-of-the-art laboratories, licenses, intellectual property, and strong customer relationships in Europe. These subsidiaries continue to grow their revenue and serve as accretive investments, which will be fully reflected in the financial results for the first quarter of 2019.
Full-Service B-Cell Facility. ImmunoPrecise, Victoria, expanded its biotherapeutic discovery platform with the roll-out of full-service B-cell screening, sorting and sequencing offerings on a broad range of therapeutically-relevant protein families. This platform is aimed at expanding the diversity of antibodies obtained, by reducing antibody loss associated with cell fusion, and increasing the variety of species available for therapeutic discovery.
"We completed a number of growth initiatives, including our acquisitions of U-Protein and ModiQuest and expanded therapeutic offerings in each of Canada and Europe to become a single, unified Contract Research Organization (CRO) to pharmaceutical and biotech companies internationally," commented Jennifer Bath, CEO of the Company. "ImmunoPrecise’s infrastructure for comprehensive antibody discovery services and global reach enables us to help ensure customer success no matter where they are located in the world."