CALGARY, Nov. 13 /PRNewswire-FirstCall/ - SemBioSys Genetics Inc. , specializing in the manufacture of high-value proteins and oils in plant seeds, today announced its third quarter 2009 financial and operational results.
“We entered into an agreement with Cathedral Energy Services Income Trust, subsequent to the end of the quarter, which will provide us with gross proceeds of approximately $3.3 million in new non-dilutive capital. This capital infusion will extend the development runway for our Apo AI(Milano) and Biosimilar Insulin programs,” said James Szarko, President and Chief Executive Officer of SemBioSys. “During the quarter we also announced key agreements with INDEAR and between Botaneco and Advitech. Our partnership with INDEAR for the commercialization and supply of safflower-made chymosin further validates our platform technology as a versatile, scalable, and cost-effective protein production system. Botaneco’s pending merger with Advitech provides it with additional funding and strengthens its product portfolio while still securing a portion of the upside potential from the Botaneco opportunity for SemBioSys. The agreements with INDEAR and Botaneco/Advitech demonstrate our ability to accelerate the commercialization and capture future revenue streams from our non-pharmaceutical programs through strategic partnerships and corporate transactions.”
Financials
SemBioSys has historically operated in two reportable segments: (i) Biopharmaceuticals and Bioproducts focused on the Company’s lead pharmaceutical candidates, recombinant human insulin and Apo AI(Milano) and (ii) Specialty Ingredients. Effective July 29, 2009, SemBioSys divested of the majority of its interest in Botaneco, and, therefore, no longer has control nor significant influence over these entities. As a result, the Specialty Ingredients segment is no longer being consolidated, but instead is being accounted for on a cost basis effective July 29, 2009 and its operating results are included in discontinued operations.
Net loss/income for the three-month period ended September 30, 2009 compared to the same period last year:
Net loss for the nine-month period ended September 30, 2009 compared to the same period last year:
Revenue for the three-month period ended September 30, 2009 compared to the same period last year:
Revenue for the nine-month period ended September 30, 2009 compared to the same period last year:
The increase in the nine-month period for continuing operations is due mainly to the recognition of licensing option fees in the first quarter of 2009 from an option agreement entered into with MannKind Corporation in the fourth quarter of 2008 and licensing fees recognized in the second quarter of 2009 related to the Company’s GLA program.
Expenditures (net of cost recoveries in each case) for the nine-month period ended September 30, 2009 compared to the same period last year:
The overall decrease in expenditures is primarily due to the cost reductions implemented in the fourth quarter of 2008 and the third quarter of 2009, in addition to decreased preclinical costs as the majority of the preclinical work for the insulin clinical trial was completed in 2008. The reduction in cost recoveries for the nine-month period ended September 30, 2009 as compared to the corresponding prior year period resulted from the achievement of all outstanding milestones related to our agreement with AVAC Ltd. for the insulin program in 2008.
As of September 30, 2009 the Company had cash and cash equivalents from continuing operations of $1,737,150 and a net positive working capital balance of $1,069,357, compared to $1,926,966 ($3,819,796 including cash related to discontinued operations), and $646,156 ($3,730,413 including working capital from discontinued operations), respectively at December 31, 2008. Total long-term debt was $1,382,987 at September 30, 2009 compared to $752,644 ($5,127,829 including long-term debt from discontinued operations) at December 31, 2008.
As at November 12, 2009 the Company had 40,653,592 common shares outstanding, 12,655,341 warrants, 3,054,578 options, 711,920 broker warrants and 385,717 Deferred Stock Units.
About SemBioSys
Calgary, Alberta-based SemBioSys is focused on leveraging its unique proprietary platform to manufacture high-value proteins and oils. SemBioSys’ seed-based protein production system can provide for its partners product enablement, exceptionally low cost and unprecedented scalability. SemBioSys is applying the platform with high selectivity to products with tremendous clinical promise and value potential. The Company’s current pharmaceutical development programs include insulin (SBS-1000, regulated as a biosimilar in Europe) and Apo AI(Milano), a next-generation cardiovascular therapy. SemBioSys’ proprietary safflower-derived Apo AI(Milano) is a des-1,2- variant of Apo AI(Milano) as previously described in the literature. SemBioSys is listed on the Toronto Stock Exchange under the ticker SBS. More information is available at www.sembiosys.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company’s current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changing market conditions and market size, the acceptance of an IND by the FDA in respect of clinical studies, the submission of a CTA to the appropriate European authorities, the successful initiation and timely and successful completion of clinical studies, the fact that Apo AI(Milano) is currently a development stage drug, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in the Company’s ongoing filings with the Canadian securities regulatory authorities which filings can be found at www.sedar.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.
CONTACT: SemBioSys Genetics Inc., Abby Garfunkel, Investor Relations,
Phone: (403) 717-4185, E-mail: garfunkela@sembiosys.com; The Trout Group,
Christine Labaree, Managing Director, Phone: (617) 583-1307, E-mail:
clabaree@troutgroup.com; The Equicom Group Inc., Ross Marshall, Vice
President, Phone: (416) 815-0700 ext. 238, E-mail:
rmarshall@equicomgroup.com
