WITTEN, Germany--(BUSINESS WIRE)--In the first nine months of fiscal year 2016 (to 31/03/2016) Sangui BioTech International Inc. achieved revenues from royalty income and product sales of USD 37,005. In the same period of the previous year the comparable revenue amounted to USD 116,500.
The cost – cutting – and liability – protection program adopted during the last quarter shows first success. Thus, the cost of business operations for the quarter could be reduced by USD 124,376 or 60% to USD 81,626. For the first three quarters of the fiscal year the cost reduction totaled USD 334 414 or 48%. As a result of this, the operating loss of the quarter decreased compared to the prior year quarter by USD 88,735 to USD 106,795 respectively for the first nine months from USD 579,088 to USD 365,387. Accordingly, the cash position of the Company during the reporting period improved.
After declining royalty income due to lower turnover of the wound treatment product Granulox in previous quarters, the company expects for the further development of the fiscal year 2016 and the fiscal year 2017 rising sales of Granulox and accordingly increasing royalty income.
This prediction is supported by successful efforts of the licensee, the Sastomed GmbH to grant reimbursement commitments for the costs caused by using Granulox from the relevant health insurance companies.
During the current quarter, the reimbursement of 100 % respectively 75 % of the costs caused by using Granulox could be reached in the Netherlands respectively in the Czech Republic. Discussions with the not yet reimbursing health insurance companies in Germany will continue.
Accessorily SastoMed GmbH was able to acquire a strong and experienced partner during the quarter for Poland. Negotiations with potential partners about distribution rights for territories in the South-East Asian region are in an advanced stage. In addition, the continuously increasing sales efforts of SastoMed - partners in the already developed territories will lead to increasing sales figures of Granulox. Here the partners in Mexico and Peru are mentioned in particular.
Sangui BioTech International, Inc. ("SGBI") is a holding company the shares of which are being traded on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies (OTCQB: SGBI). Companies are current in their reporting and undergo an annual verification and management certification process. Sangui shares also trade on the OTC markets of Berlin and Hamburg-Hannover stock exchanges (symbol: SBH). Its purpose is to provide financing and access to the capital markets for the enterprises of the Sangui group. SanguiBioTech GmbH is a ninety percent subsidiary of Sangui BioTech International, Inc.
Some of the statements contained in this news release discuss future expectations, contain projections of results of operation or financial condition or state other “forward-looking” information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.