Therapeutics: Positive preliminary clinical data for PBI-1402
- Protein technologies: Revenue growth (+ 450%) and additional agreements signed
MONTREAL, QUEBEC--(Marketwire - August 14, 2007) - ProMetic Life Sciences Inc. (TSX: PLI) ("ProMetic") today provided an update of the Company's milestones for the second half 2007 along with the most recent 2007 business highlights to date and the second quarter financial results.
"We are delighted with our first half year performance that has set the stage to achieve a record year in terms of revenues for ProMetic and is in line with our revenue guidance of $15 M for 2007," comments Pierre Laurin, President and CEO of ProMetic. "We also expect, in the forthcoming months, to deliver on key milestones that will bring added value to the shareholders."
OVERVIEW - UPCOMING MILESTONES
- PBI-1402 -
- Additional clinical data from the chemotherapy-induced anemia ("CIA")
trial expected in the third quarter of 2007;
- Disclosure of mechanism of action supporting use in anemia / oncology
indications;
- Expansion of PB1-1402 into other anemia-related clinical indications.
- Protein Technologies - revenue growth -
- Ramp-up of PRDT business with plasma fractionators;
- Ramp-up of PRDT prion filter (P-Capt(TM));
- Expansion of relationship with Kedrion Biopharmaceuticals (orphan
drugs);
- Forthcoming agreements with plasma fractionators;
- Partnership with a strategic player in the bioseparation industry;
- Execution of the Tecpar project (manufacturing of high-value
biopharmaceuticals);
- Sales of proprietary affinity bioseparation products and introduction
of new products for antibody purification;
MOST RECENT HIGHLIGHTS
- Revenues of $6.1 M in first half of 2007 versus $1.1M for same period last year;
- Reported positive preliminary clinical data for PBI-1402 in patients with chemotherapy-induced anemia;
- Signed and initiated the $19 M Tecpar project;
- Signed a development contract with a prominent European plasma fractionator worth $1.8 M;
- Signed a plasma fractionation agreement with Blue Blood Biotech Corporation to target market opportunity with $50 M in annual sales;
- Signed agreement Laboratorios Dermatologicos Darier S.A. ("Darier") for ProMetic's synthetic anti-inflammatory compound PBI-1308 in dermatological disorders;
- PRDT technology increasing sensitivity of BSE detection (mad cow disease) over current diagnostic tests - over 13 million tests performed annually;
"The expected revenues will serve to solidify our financial position while driving us towards profitability," states Stephane Archambault, Vice-President, Finance, at ProMetic.
SECOND QUARTER 2007 FINANCIAL RESULTS
All amounts are in Canadian dollars unless otherwise indicated.
The following information should be read in conjunction with the financial statements for the second quarter 2007 as well as the Management Discussion and Analysis for the same period.
Total revenues for the second quarter of 2007 were $3.0 million compared with $0.6 million for the second quarter of 2006. For the first six months of 2007, revenues were $6.1 million compared to $1.1 million for the same period last year. The increased activities of ProMetic BioSciences Ltd for its proprietary affinity products and execution of development agreements signed in 2007 contributed largely to this significant improvement in revenues.
Research and development expenses grew to $5.1 million for the quarter ended June 30, 2007 from $2.4 million for the same period in 2006. Year to date, research and development expenses for 2007 amounted to $10.1 million compared $6.2 million in 2006. The expenditures increases were mainly attributed to:
- The continuation of the Phase Ib/II clinical trials for the PBI-1402 program.
- The cost associated to the delivery of a major proprietary affinity product order that was received in late 2006;
- Establishment of a U.S. subsidiary for the Plasma Protein Purification System (PPPS) technology;
- The Pathogen Removal and Diagnostic Technologies (PRDT) prion filter program where clinical studies are underway.
General and administrative expenses were $1.4 million for the second quarter ended June 30, 2007, as compared to $1.8 million for the second quarter ended June 30, 2006. For the first six months of 2007, the general and administrative expenses were slightly lower at $2.9 million compared to $3.3 million for the same period in 2006. The variance is mainly caused by the strengthening Canadian dollar vis-a-vis the US dollar and the British pound.
Depreciation and amortization expenses for the quarters ended June 30, 2007 and June 30, 2006 were $0.5 million and $0.3 million respectively. Year to date depreciation and amortization were $1.1 million in 2007 compared to $1.0 million in 2006.
The Company incurred a net loss of $4.8 million, or $0.02 per share, for the quarter ended June 30, 2007 compared with a net loss of $7.1 million, or $0.05 per share, for the same period in 2006. Year to date loss amounted to $9.5 million. The significant decrease in net loss was primarily due to revenues resulting from the increase in activities of ProMetic BioSciences Ltd for its proprietary affinity products and execution of development agreements signed in 2007.
CONSOLIDATED BALANCE SHEETS
(In thousands of Canadian dollars)
(Unaudited)
June 30 December 31
2007 2006
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ASSETS
Current assets
Cash and cash equivalents $4,961 $20,825
Accounts receivable 5,577 2,298
Inventories 1,933 2,223
Prepaid expenses 803 647
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13,274 25,993
Investments 2,606 2,224
Capital assets 4,588 4,484
Licenses and patents 5,273 5,442
Deferred financing expenses - 2,584
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$25,741 $40,727
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $3,691 $5,696
Provision related to a lawsuit 3,170 3,084
Deferred revenues 1,113 2,199
Current portion of long-term debt 3,113 2,678
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11,087 13,657
Long-term debt 5,502 8,899
Preferred shares, retractable at the
holder's option 3,163 2,916
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19,752 25,472
SHAREHOLDERS' EQUITY
Share capital 181,481 181,412
Contributed surplus 8,251 8,022
Deficit (183,743) (174,179)
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5,989 15,255
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$25,741 $40,727
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The accompanying notes are an integral part of the consolidated financial
statements.
The unaudited quarterly financial statements have not been reviewed by
external auditors.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of Canadian dollars except for per share amounts)
(Unaudited)
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Quarter ended Six month ended
June 30 June 30
2007 2006 2007 2006
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Revenues
Sales and contract $3,023 $624 5,993 $1,080
Licensing - 1 67 41
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3,023 625 6,060 1,121
Charges
Research and development
expenses 5,100 2,410 10,118 6,219
Administration, marketing and
other expenses 1,449 1,774 2,907 3,257
Amortization of capital assets 247 258 475 514
Amortization of license and
patents and deferred
development costs 307 65 608 501
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7,103 4,507 14,107 10,491
Loss before the following items (4,080) (3,882) (8,047) (9,370)
Provision related to a lawsuit (43) (44) (86) (78)
Net interest expenses (691) (3,192) (1,345) (4,017)
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Net loss ($4,813) ($7,118) ($9,478) ($13,465)
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Net loss per share
(basic and diluted) (0.02) (0.05) (0.04) (0.10)
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Weighted average number of
outstanding shares
(in thousands) 234,799 137,708 234,787 131,568
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The accompanying notes are an integral part of the consolidated financial
statements.
The unaudited quarterly financial statements have not been reviewed by
external auditors
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (www.prometic.com) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand" technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the U.S., Europe, Asia and in the Middle-East.
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