Chemeq announces $7m loss

WA antimicrobial vet biotech Chemeq (ASX: CMQ) has listed a AUD$7.2 million loss for the 2002-03 fiscal year, described as "in line with the company's budget" despite a recent $25 million injection from share placements.

A statement said the loss was mainly attributable to the cost of building its new manufacturing facility, due to be start production later this year. The new facility, designed especially to increase output of the company's polymeric antimicrobial, due on the market next year.

Referring to the write-down, Dr Graham Melrose, CEO, said the results were "consistent with our commitment and support of the current construction of our manufacturing facility".

"Chemeq is on the threshold of earning sales revenue; key staff have been appointed in all areas of business and our regulatory and related marketing efforts have increased," he said.

Chemeq's shares had dropped 15c to $5.25 at time of writing.