Groupe LSL Pharma Update on Increased Production Capacity and Anticipated Sales Growth
June 20 2023 - 5:54PM
GROUPE LSL PHARMA INC (TSXV: LSL) - Groupe LSL Pharma Inc. ("the
Company" or " LSL Pharma Group "), a Canadian integrated
pharmaceutical company, is pleased to announce that its total
annual production capacity will be increased by approximately 35%
to 40% as early as 2023, and further for 2024 and 2025, with its
new facility in La Pocatière and a series of manufacturing
optimizations in Upton. The Company would also like to point out
that its Management's Discussion and Analysis and its unaudited
consolidated financial statements for the first quarter ended March
31, 2023 were filed on SEDAR on May 30, 2023.
"The first quarter of 2023 was a period of
transformation for LSL Pharma Group, as we began trading as a
publicly traded company and made significant progress in expanding
the manufacturing footprint and capacity of our two business
units," said François Roberge, President and CEO of LSL Pharma
Group. "We are pleased with the improvement in profitability
achieved in the first quarter, which is typically our weakest
quarter of the year, and we are particularly excited about the
increased output at our new LSL Laboratory ("LSL") plant and the
upcoming increase in Steri-Med's production capacity. The continued
and significant increase in our production capacity will enable us
to further expand our product offering and satisfy a broad customer
base."
CAPACITY INCREASE UPDATE
Since the beginning of May 2023, the Company has
occupied a new state-of-the-art plant in La Pocatière. Production
at the new plant will gradually ramp up until the end of the year.
In view of the increased capacity, LSL Pharma Group expects
revenues from existing customers to grow by more than 15% a year
over the next few years.
In parallel, capacity optimization initiatives
at the Steri-Med plant in Upton, Quebec, are progressing according
to plan, which should double capacity by the end of 2023. The
Company also plans to add a new manufacturing line towards the end
of 2024, which could further double production capacity and enable
the development of new products to fuel organic growth.
"This double expansion will play a key role in
organic sales growth of around $5 million annually. The LSL site
expansion enables us to broaden our product offering, adding new
natural health products to our private label business and
developing new customers. It will also enable us to pursue our
expansion into new international markets, such as the United States
and Europe. At the same time, Steri-Med's additional capacity will
accelerate our penetration of the vast US market for sterile
ointments in the first instance, and subsequently for eye drops.
Finally, given our solid financial position, we remain on the
lookout for strategic acquisitions that will enable us to further
expand our product portfolio," added Mr. Roberge.
CAUTION REGARDING FORWARD-LOOKING
STATEMENTS
This news release may contain forward-looking
information as defined under applicable Canadian securities laws.
Forward-looking information can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "continue" or similar terminology.
Forward-looking information is based on a number of assumptions and
is subject to various known and unknown risks and uncertainties,
many of which are beyond the Company's ability to control or
predict, that could cause actual results or performance to differ
materially from those expressed or implied by such forward-looking
information. These risks and uncertainties include, but are not
limited to, those identified in the Corporation’s filings with
Canadian securities regulatory authorities such as legislative or
regulatory developments, intensifying competition, technological
change and general economic conditions. All forward-looking
statements presented herein should be considered in conjunction
with such filings.
Readers should not put undue reliance on
forward-looking statements. No assurances can be given that any of
the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do occur, the actual results,
performance or achievements of the Company could differ materially
from the results expressed in, or implied by, any forward-looking
statements. All forward-looking information in this news release
speaks as of the date of this news release. The Company does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise except as
required by law.
ABOUT LSL PHARMA INC.
LSL Pharma Group is an integrated Canadian
pharmaceutical company specializing in the development, manufacture
and distribution of high-quality natural health products and
dietary supplements in solid dosage forms, as well as high-quality
sterile ophthalmic pharmaceuticals. For further information, please
visit www.laboratoirelsl.com and www.sterimedpharma.com.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CONTACT :François Roberge,
President and CEO Telephone: 514 664-7700E-mail:
Investors@groupelslpharma.com
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