Crescita Therapeutics Announces Measures in Response to COVID-19 Virus
LAVAL, QC, March 24, 2020 /PRNewswire/ - Crescita Therapeutics Inc. (TSX: CTX) (OTC US: CRRTF) ("Crescita" or the "Company"), a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house research & development ("R&D") and manufacturing capabilities, today announced measures it is taking in response to the novel coronavirus pandemic ("COVID-19").
In accordance with the government-mandated shut-down of all non-essential businesses announced by Québec Premier François Legault yesterday, the Company will be temporarily closing its office and production facility in Laval, Québec, effective today at midnight until at least April 13, 2020. The facility closure will regretfully result in temporary layoffs affecting most production and office personnel. Certain employees deemed critical to maintaining basic services during the shut-down, including customer service, will be working remotely with reduced hours. Product distribution through the Company's third-party logistics provider will remain operational with reduced capacity.
Business Impact to Date
Most of the Company's Canadian clients in the aesthetic and medical aesthetic markets have temporarily closed resulting in substantially decreased Canadian product sales. The Company's international business with various affected countries such as Malaysia, South Korea and China has also decreased. The Company anticipates that royalties from international sales of its products will be adversely affected by lower demand and may also be affected by border restrictions.
The Company is in the process of implementing various initiatives in order to conserve cash and help maintain its financial flexibility through the uncertainties and economic pressures posed by the pandemic. The members of the executive team, including the CEO and CFO, as well as members of the Company's Board of Directors have agreed to temporary base salary or fee reductions ranging between 25% and 40%. In addition, effective March 24, 2020, the Company terminated its Automatic Share Purchase Plan ("ASPP") which was launched on June 28, 2019 in connection with the Company's current normal course issuer bid ("NCIB"). The current NCIB remains in effect on the same terms and conditions as previously disclosed. As of December 31, 2019, the Company had cash and cash equivalents of $9.3 million.
The Company is closely monitoring developments and will continue to provide updates as the COVID-19 situation evolves.
About Crescita Therapeutics Inc.
Crescita (TSX: CTX and OTC US: CRRTF) is a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house R&D and manufacturing capabilities. The Company offers a portfolio of non-prescription skincare products and early to commercial stage prescription drug products and owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active ingredients into or through the skin.
Supported by a sales force covering all of Canada and executing its Business to Business to Consumer marketing approach, Crescita sells its non-prescription skincare products domestically through spas, medispas, and medical clinics, as well as internationally, through distributors and an e-commerce platform.
Crescita's predecessor company, Nuvo Research, developed a prescription product called Pliaglis®, that utilizes the Company's proprietary phase-changing topical cream Peel technology, a part of the DuraPeel™ family, which are self-occluding, film-forming cream/gel formulations, that provide extended release delivery of the active ingredients to the site of application. Pliaglis is a topical local anaesthetic cream that provides safe and effective local dermal analgesia on intact skin prior to superficial dermatological procedures. The product is currently approved in over 25 different countries and sold by commercial partners in the U.S., Italy and Brazil, and sold in Canada by the Company.
Crescita's expertise in product formulation and development can be leveraged in combination with its patented transdermal delivery technologies to develop and manufacture creams, liquids, gels ointments and serums under its contract development and manufacturing organization ("CDMO") infrastructure. The Company operates out of a 50,000-square-foot facility located in Laval, Québec, which produces a significant part of its non-prescription skincare products, such as LDR, Pro-Derm and Alyria. Formulations manufactured by or for Crescita include cosmetics, natural health products ("NHP") and products with Drug Identification Numbers ("DIN"). For additional information, please visit www.crescitatherapeutics.com.
This press release contains "forward-looking information" as defined under Canadian securities laws (collectively, "forward-looking statements"). The words "plans", "expects", "does not expect", "goals", "seek", "strategy", "future", "estimates", "intends", "anticipates", "does not anticipate", "projected", "believes" or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "should", "might", "likely", "occur", "be achieved" or "continue" and similar expressions identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts but instead represent management's expectations, estimates, projections and assumptions regarding future events or circumstances. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the Company as of the date of this press release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Material factors and assumptions used to develop the forward-looking statements, and material risk factors that could cause actual results to differ materially from the forward-looking statements, include but are not limited to changes in the business or affairs of Crescita; the ability of Crescita's licensees to successfully market its products; competitive factors in the industries in which Crescita operates; relationships with customers, suppliers and licensees; changes in legal and regulatory requirements; foreign exchange and interest rates; prevailing economic conditions; and other factors, many of which are beyond the control of Crescita.
Additional factors that could cause Crescita's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors included in Crescita's most recent Annual Information Form under the heading "Risks Factors", and as described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory authorities and commissions. These and other factors should be considered carefully, and readers should not place undue reliance on Crescita's forward-looking statements when making decisions, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved.
All forward-looking statements are based only on information currently available to the Company and are made as of the date of this press release. Except as expressly required by applicable Canadian securities law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.
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SOURCE Crescita Therapeutics Inc.