BOUCHERVILLE, Quebec, June 20, 2023 (GLOBE NEWSWIRE) -- 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: 514 664-7700
E-mail: Investors@groupelslpharma.com
