Toronto Stock Exchange Symbol: MS
EDMONTON, Nov. 12 /PRNewswire-FirstCall/ - BioMS Medical Corp. (TSX: MS) today announced financial and operational results for the three and nine months ended September 30, 2009.
During the quarter, the exclusive license and collaboration agreement between BioMS Medical and Eli Lilly and Company (NYSE: LLY) for dirucotide was terminated with the effect that all commercial rights to dirucotide are returned to BioMS.
"During the third quarter, the Company made significant progress towards completing its termination of the dirucotide clinical trials, and in reducing expenditures," said Kevin Giese, President and CEO of BioMS Medical. "We anticipate that this process of ending the trials, which includes the collecting, and review and analysis of the trial data, should be substantially completed by the end of the year."
The consolidated net income of the Corporation for the three months ended September 30, 2009 was $9.9 million or $0.11 per share compared with consolidated net income of $6.3 million or $0.07 per share for the previous year. The consolidated net income of the Corporation for the nine months ended September 30, 2009 was $10.1 million or $0.11 per share compared with a consolidated net loss of ($0.8) million or ($0.01) per share for the same period in 2008.
Revenue earned from the collaboration agreement in the amount of $20.6 million for the three months and $45.6 million for the nine months ended September 30, 2009 compared to $16.1 million and $40.1 million for the three and nine months ended September 30, 2008. The revenue represents the amortization of deferred revenue from the US$87 million upfront licensing fee payment and the US$10 million development milestone payment received from Lilly from the Agreement that was terminated on September 2, 2009. Deferred revenue is recorded as revenue as the Corporation incurred the costs related to meeting its obligations under the terms of the Agreement.
Total consolidated expenses for the three months ended September 30, 2009 were $5.0 million as compared with $11.8 million in the three months September 30, 2008. Expenses related to the Corporation's direct research and development efforts accounted for $3.7 million or 75% of all expenses as compared with $10.1 million or 86% in 2008. Total consolidated expenses for the nine months ended September 30, 2009 were $30.1 million as compared with $45.4 million in the nine months September 30, 2008. Expenses related to the Corporation's direct research and development efforts accounted for $23.4 million or 78% of all expenses as compared with $32.6 million or 72% in 2008.
At September 30, 2009, cash and cash equivalents and short-term investments totaled $56.3 million as compared to $90.4 million at December 31, 2008. At September 30, 2009, the Corporation had working capital of $54.4 million as compared to $81.3 million at December 31, 2008.
Management estimates that the current working capital is sufficient for the Corporation to meet its obligations to fund the completion costs of the completed clinical trials and ongoing operations beyond 2010.
As at September 30, 2009 there were 91,008,923 Class "A" common shares of the Company issued and outstanding.
BioMS Medical is a biotechnology company engaged in the development and commercialization of novel therapeutic technologies. BioMS Medical's lead technology, dirucotide, is for the treatment of multiple sclerosis. For further information please visit our website at http://www.biomsmedical.com
This press release may contain forward-looking statements, which reflect the Corporation's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, 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 Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About BioMS Medical Corp. -------------------------
SOURCE BioMS Medical Corp.