EDMONTON, Nov. 1 /PRNewswire-FirstCall/ - Biomira Inc. ("Biomira" or the "Company") today reported a consolidated net loss of $6.8 million or $0.06 per basic and diluted share for the three months ended September 30, 2007, compared to $3.7 million or $0.04 per basic and diluted share for the same period in 2006. Revenue was $1.2 million for the 2007 third quarter, compared with $1.7 million for the year earlier quarter. Total operating expenses were $7.9 million for the quarter ended September 30, 2007, compared with $5.6 million for the same quarter in 2006. All results are in Canadian dollars.
The increase in net loss of $3.1 million primarily resulted from lower revenues of $0.5 million and increased operating expenses of $2.3 million. The lower revenues resulted from reduced contract research and development funding as a result of transitioning the responsibility for the clinical development and regulatory activities for Stimuvax(R) to Merck KGaA of Darmstadt, Germany ("Merck KGaA") during 2006. The increase in operating expenses is primarily attributable to professional fees associated with the Company's proposed reincorporation into the United States. Also contributing to the increase in operating expenses is higher amortization expense related to intangible assets acquired as part of the ProlX acquisition in October 2006. Partially offsetting these variances is lower research and development expenses, once again resulting from transitioning the responsibility for the clinical development and regulatory activities for Stimuvax to Merck KGaA during 2006.
Financial results for the nine months ended September 30, 2007 reflect a consolidated net loss of $18.4 million or $0.16 per basic and diluted share compared to $13.5 million or $0.15 per basic and diluted share for the same period in 2006.
As at September 30, 2007, cash and cash equivalents and short-term investments were $20.5 million compared to $33.0 million at the end of 2006, a decrease of $12.5 million. Major contributors to the net change included $10.6 million used in operations, $0.5 million used in payment of accrued business acquisition and share issuance costs, and $1.1 million used in the purchase of capital and intangible assets. Included in cash used in operations is an increase in inventory of $3.5 million related to Stimuvax manufacturing activities, which resumed in the first quarter of 2007 as a result of the commencement of the Merck KGaA-led phase 3 trial of Stimuvax in non-small cell lung cancer. Also included in cash used in operations are proceeds from collaborative agreements of $5.6 million related to milestone payments received under the provisions of the collaboration between Biomira and Merck KGaA.
Biomira is a biotechnology company specializing in the development of innovative therapeutic products for the treatment of cancer. Biomira's goal is to develop and commercialize novel synthetic vaccines and targeted small molecules that have the potential to improve the lives and outcomes of cancer patients.
In order to provide our investors with an understanding of our current results and future prospects, this release may contain statements that are forward looking. These forward-looking statements represent Biomira's intentions, plans, expectations and beliefs and are based on our experience and our assessment of historical and future trends and the application of key assumptions relating to future events and circumstances.
Forward-looking statements involve risks and uncertainties related to our business and the general economic environment, many beyond our control. These risks, uncertainties and other factors could cause our actual results to differ materially from those projected in forward-looking statements, including those predicting adequacy of financing and reserves on hand; currency exchange rate fluctuations; changes in general accounting policies; and general economic factors. Although we believe that any forward-looking statements that may be contained herein are reasonable, we can give no assurance that our expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. For a detailed description of our risks and uncertainties, you are encouraged to review the official corporate documents filed with the securities regulators in Canada and the United States, including the risk factors described in our 2006 Annual Report and in the amended registration statement on Form S-4 filed by Oncothyreon Inc.
Additional information relating to Biomira, including a copy of our Annual Information Form, Form 40-F and Proxy Circular, can be found on SEDAR at www.sedar.com and U.S. EDGAR at www.sec.gov.
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