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Zila Inc. (ZILA) Reports Robust Revenue Growth; Stock Surges Nearly 9%

Shares of Zila Inc. (ZILA) soared nearly 9% Tuesday to close at 62 cents after the oral diagnostics company announced its sixth consecutive quarter of robust revenue growth, including a 136 percent increase in sales of its flagship ViziLite® Plus product during the second quarter of 2008.

The Phoenix-based company saw gross profit grow to $6.2 million from $4.1 million during the prior-year period, bolstered by higher sales of ViziLite® Plus, which the company began marketing directly to dental offices last year. Net revenues increased 47% to $10.5 million, while combined sales of the company’s other products, excluding ViziLite® Plus, grew 26% to $7.3 million.

Zila, founded in 1980, manufactures products that detect oral cancer and periodontal disease. ViziLite® Plus, which utilizes a chemiluminescent light to detect abnormalities that could lead to cancer, is the first and only adjunctive medical device cleared by the FDA for use in a population at increased risk for oral cancer. The company also offers periodontal cleaning brushes, fluoride products, sensor probes, and educational products.

“We continue to be encouraged by dental professional and patient acceptance of ViziLite Plus, as reflected in the continuing quarterly revenue increases,” said Frank J. Bellizzi, DMD, president of Zila Pharmaceuticals. “To capitalize on our continuing business growth, as well as provide an increased level of operating flexibility, we are making every effort to marshal the financial and human resources necessary to enable and sustain our growth and drive to profitability.”

More than 30,000 Americans will be diagnosed with oral cancer this year, and less than 57% of those diagnosed will survive 5 years, according to the American Cancer Society. One American dies of oral cancer every hour, according to The Oral Cancer Foundation.

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