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Press Release

MYOS RENS Technology Reports Fourth Quarter And Fiscal 2017 Financial Results

MYOS RENS Technology
Posted on: 31 Mar 18

CEDAR KNOLLS, N.J., March 27, 2018 /PRNewswire/ -- MYOS RENS Technology Inc. ("MYOS" or "the Company") (NASDAQ: MYOS), a bionutrition company and owner of Fortetropin®, a proprietary ingredient that helps build lean muscle in conjunction with resistance training, announced today its financial results for the fourth quarter and fiscal year ended December 31, 2017.  (Amounts in thousands except where noted.)

FINANCIAL HIGHLIGHTS:

Fourth Quarter 2017:

Net revenues increased 480% to $157, compared to $27 for the fourth quarter of 2016.

Gross profit was $93, compared to $0 for the fourth quarter of 2016.

Gross profit margin was 59% for the fourth quarter of 2017.

Operating expenses increased 56% to $1,173, compared to $752 for the fourth quarter of 2016.

Net loss increased 44% to $1,082, compared to $752 for the fourth quarter of 2016.

Year ended December 31, 2017

Gross profit margin was 41% for the year ended December 31, 2017, compared to 2% for the year ended December 31, 2016.

Net revenues increased 61% to $526, compared to $327 for the year ended December 31, 2016.

Gross profit increased 2,625% to $218, compared to $8 for year ended December 31, 2016.

Operating expenses decreased 1% to $4,286, compared to $4,315 for the year ended December 31, 2016.

Net loss decreased 7% to $4,058, compared to $4,341 for the year ended December 31, 2016.

Liquidity
As of December 31, 2017, the Company had no debt and had $2.4 million in working capital. During the year ended December 31, 2017, the Company raised approximately $1.1 million from the sale of 500,000 shares of common stock at $2.14 per share and, after year end, raised approximately $287 from the sale of 140,295 shares of common stock for $2.11 per share through its at-the-market program with H.C. Wainwright & Co., LLC.

MANAGEMENT COMMENTARY:
Joseph Mannello, Chief Executive Officer of MYOS, commented, "We are pleased with the accomplishments made at MYOS in 2017, as we have laid the foundation that will allow us to leverage the market opportunities for Fortetropin®, our proprietary ingredient that has been clinically shown to increase lean muscle size and mass when taken in conjunction with resistance training.

We continue to be fully committed towards increasing shareholder value through research.  To this end, we have initiated the following three research programs that we believe could create significant commercial opportunities for the Company:

The program at University of California, Berkeley, will evaluate the impact of Fortetropin® on the rate of muscle synthesis in 60 - 75 year old men and women; we believe positive results would lay the foundation for products addressing age related muscle loss.

The program at Kansas State University is evaluating the impact of Fortetropin® to reduce disuse muscle atrophy associated with orthopedic surgery in dogs; we believe positive results would lay the foundation for launching our pet product as well as initiating human studies for recovery and rehabilitation after orthopedic surgeries.

The research program at Rutgers University is focused on discovery of compounds and products for promoting the development of muscle tissue.

We are actively engaged in discussions with principal investigators at leading academic institutes to explore additional research opportunities.  We believe that these research programs have the potential to create new market opportunities for the company, thus resulting in increased shareholder value.

"I'm very excited about the potential for our Fortetropin®-based pet product, which we expect to launch in the near future. We have seen positive anecdotal results with older dogs taking our product.  Two veterinary hospitals which performed some informal observational studies with older dogs experiencing muscle atrophy, saw positive results in their patients after administering our product to them.  They both are seeking to purchase Fortetropin® after seeing these results. We believe that all of the positive feedback that we are receiving along with the potential results from our Kansas State University study, will enable us to launch and grow our pet business product line.

"We are launching our Collegiate Sports Marketing Platform with IMG College, a division of IMG, over the next month. We will begin to introduce Fortetropin® to certain Division I schools and will continue to expand these introductions over the next few months. We also will be introducing our products to professional sports teams, as well as cross-fit and other endurance-format athletes. Having IMG generate opportunities for MYOS to introduce our product to major sports and nutrition institutions is a tremendous win for the company.

"Earlier this month, we attended the Arnold Sports Festival, the nation's largest health and fitness exhibition in Columbus, Ohio, and had a great booth at the Expo hall.  Our intent was to educate retailers, distributors, multilevel marketers, and individual consumers about Fortetropin®, and the response was tremendous. Most of the feedback we received was extremely positive, with many visitors impressed by the sizable amount of science behind Fortetropin®, particularly when compared to the other products at the expo. This has led to several follow up meetings with potential customers that we believe can be a meaningful driver for revenue over the next 6-12 months.

"Our cost structure is much better positioned today than a year ago."  We have managed to reduce our burn rate through cutting costs and pursuing more cost-effective revenue generation opportunities. We have no debt on the balance sheet and have successfully raised capital through our ATM program. This has allowed us to raise capital without having to issue warrants or options. However, we have room to improve our positioning, which I am committed towards over the next 12 months. I will continue to look at our costs and make cuts where needed.

"There is much to be optimistic about for 2018 and beyond. I truly see tremendous potential for this company - potential that can create value for shareholders.  "I am invested in MYOS because I believe in Bob Hariri's idea that if you could find a product to improve muscle health, a great benefit and a great opportunity existed. Fortetropin® is a disruptive and beneficial product that improves muscle health. There is truly nothing like it that I can find in the market.  I believe that our strengthened foundation, improved scientific profile, and brand development will yield both short-term and long-term success. We look forward to sharing more on our developing story in the weeks to come," concluded Mr. Mannello.

CONFERENCE CALL
MYOS will host a conference call tomorrow, Wednesday, March 28, 2018 at 11:00 am ET, at which time MYOS Chief Executive Officer Joseph Mannello will provide highlights and commentary on earnings results for the fourth quarter and the year ended December 31, 2017.

Call Date/Time:  Wednesday, March 28, 2018 at 11:00 am ET

Call Title:  MYOS RENS Technology 2017 Financial Results Conference Call

Dial In:  877-407-4019 from the U.S.; international callers may telephone 201-689-8337, approximately 15 minutes before the call.

A digital replay will be available by telephone approximately two hours after the completion of the call until June 30, 2018 and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, using the Conference ID# 13677747.

This call will be simultaneously webcast. The webcast will be available on the MYOS website, www.myosrens.com, in the "Investor Relations" section. The webcast will be archived and available at the same web address for two weeks following the call.

About MYOS RENS Technology Inc. 
MYOS RENS Technology Inc. (MYOS), "The Muscle Company™", is a Cedar Knolls, NJ-based bionutrition company that develops and markets products that improve muscle health and performance. MYOS is the owner of Fortetropin®, a fertilized egg yolk-based product manufactured via a proprietary process to retain and optimize its biological activity. Fortetropin® has been clinically shown to increase muscle size and lean body mass in conjunction with resistance training. MYOS believes Fortetropin® has the potential to redefine existing standards of physical health and wellness. For more information, please visit www.MYOSRENS.com.

Forward-Looking Statements
Any statements in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements involve risks and uncertainties, including but not limited to those relating to product and customer demand, market acceptance of our products, the ability to create new products (including pet products) through research and development, including the research described herein, the successful results of strategic initiatives, the successful launch of our existing or new products, including Qurr® products, the success of our research and development, the results of the clinical evaluation of Fortetropin® and its effects, the ability to enter into new partnership opportunities and the success of our existing partnerships, the ability to generate the forecasted revenue stream and cash flow from sales of our products, the ability to continue increasing our revenue and gross profit margins and reducing expenses, the ability to achieve a sustainable, profitable business, the effect of economic conditions, the ability to protect our intellectual property rights, competition from other providers and products, the continued listing of our securities on the Nasdaq Stock Market, risks in product development, our ability to raise capital to fund continuing operations, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.

These statements have not been evaluated by the Food and Drug Administration. Our products are not intended to diagnose, treat, cure or prevent any disease.

Investor Relations:
Porter LeVay & Rose
Michael Porter, President
Phone: 212-564-4700
Email:  MYOS@plrinvest.com

The following tables should be read in conjunction with the footnotes accompanying the consolidated financial statements contained within the Annual Report on Form 10-K filed by the Company on March 27, 2018.

Editor's Details

Mike Wood
PharmiWeb.com
www.pharmiweb.com
editor@pharmiweb.com

Last updated on: 31/03/2018

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