EDMONTON, March 18 /PRNewswire-FirstCall/ - BioMS Medical Corp. (TSX: MS),a leading developer in the treatment of multiple sclerosis ("MS"), todayannounced financial and operational results for the year ended December 31,2007.
"We continue to focus on the worldwide development of MBP8298, ourproprietary synthetic peptide drug for the treatment of multiple sclerosis,which is being evaluated in several late-stage trials in the U.S., Canada andacross Europe," said Kevin Giese, President and CEO of BioMS Medical. "Themagnitude of the partnership we formed with Lilly at the end of 2007 for theglobal rights to MBP8298 underscores the enormous potential of our drug and isa validation of all the years of hard work performed by our team."
Currently, BioMS is conducting three clinical trials and one open-labelfollow-on trial for MBP8298:
On December 17, 2007, BioMS entered into a licensing and developmentagreement granting Eli Lilly and Company exclusive worldwide rights to itslead MS compound, MBP8298. Under the terms of the agreement, Lilly and BioMSwill collaborate on the development of MBP8298 and will also share in certaindevelopment costs with Lilly being responsible for future research anddevelopment, manufacturing and marketing activities. The transaction closed onJanuary 25, 2008 with the receipt of an upfront payment of US$87 million.BioMS has the potential to receive additional development and sales milestonesof up to US$410 million and escalating royalties on sales commensurate withthe current stage of development of the product if MBP8298 is commercialized.BioMS will continue to oversee the current trials. The completion of thetransaction resulted in licensing bonuses, as contemplated in a number ofpre-existing employment agreements, paid to all Company personnel in February2008 of $9.0 million which was reviewed and approved by the independentCompensation Committee, and supported by an independent compensationconsultant review.
The consolidated net loss for the year ended December 31, 2007 was $47.2million or ($0.56) per share compared with a consolidated net loss of $40.9million or ($0.62) per share for the previous year. The consolidated net lossfor the fourth quarter ended December 31, 2007 was $11.7 million or ($0.13)per share compared with a consolidated net loss of $14.1 million or ($0.20)per share for the fourth quarter of the previous year.
Total consolidated expenses for the year ended December 31, 2007 were$48.0 million compared to $42.2 million for the previous year. Totalconsolidated expenses for the three months ended December 31, 2007 were $12.1million compared to $14.4 million for the same quarter of the previous year.
Research and development expenses for the year ended December 31, 2007totaled $38.9 million compared with $35.2 million in 2006. The increase wasdue primarily to the start up and initial enrollment of patients in theMAESTRO-02 follow-on trial, the full enrollment and continuation of theMINDSET-01 clinical trial and the start-up and commencement of enrolment ofthe MAESTRO-03 clinical trial. It is expected that research and developmentexpenses will increase over the next two years as the current clinical trialsfor MBP8298; MAESTRO-01, MAESTRO-02, MAESTRO-03 and MINDSET-01, continue inCanada, Europe and the U.S.
Research and development expenses were $9.3 million for the fourth quarterended December 31, 2007 compared to $12.5 million for the fourth quarter ofthe previous year. The reduction in expenses was the net result of reducedcosts for the MAESTRO-01 trial, as more patients are completing or nearcompletion of their two years on the trial, and a reduction in the number ofbatches of MBP8298 manufactured in the year, offset by start-up costs for theMAESTRO-02 and MAESTRO-03 trials.
General and administrative expenses were $7.5 million for the