Neptune Biotech Up in 1Q

LAVAL, Quebec Neptune Technologies & Bioressources (NASDAQ: NEPT; TSX.V: NTB) released financial results for its first quarter (1Q), ended May 31, 2010. Revenue increased by 45 percent to $4.16 million, up from $2.88 million for the corresponding three-month period in 2009. The vast majority of revenue came from the nutraceutical business, which accounted for $4.15 million, another 45 percent increase. Consolidated EBITDA for 1Q10 was $676,000, compared to a loss of $284,000 for 1Q09. The positive growth contributed to a significant growth in net earnings, hitting $476,000compared to a net loss of $1.41 million for the three-month period ended May 31, 2009.

Andre Godin, vice president, finance and administration, commented that the growth in revenue and income were the result of the companys strategy of increasing cash flow to finance R&D, which should drive future earnings. Xavier Harland, director of finance, agreed with the assessment, adding, We now see the impact of the investment we made last year in Neptunes manufacturing plant, which has translated into increased and improved production performance and led to these results.

In additional news, Neptune hired an investor relations firm for Canada. The Howard Group will develop and implement a capital markets program, incorporating traditional and online initiatives designed to heighten interest and market participation in the company among the investment community. Under terms of the 12-month initial agreement, the Howard Group will be paid a monthly fee and has the option to purchase an aggregate total of 50,000 common shares of Neptune at a price of $1.50/share. It will also receive 150,000 warrants in Acasti Pharma Inc., with an exercise price of $0.50/share, expiring Dec. 31, 2010.

Neptune also announced its board of directors decided to grant a total of 790,000 incentive stock options of Neptune, 760,000 rights on Acasti series 4 warrants held by Neptune, and 760,000 rights on Neurobiopharm series 4 warrants held by Neptune to insiders and employees.

Neptunes business operations include Acasti Pharma, which is developing a product portfolio of proprietary novel omega-3 phospholipids for the drug and medical food markets; Neurobiopharm, focusing on pharma neurological applications and medical foods; and the nutraceutical business, including Neptune Krill Oil (NKO®).