MISSISSAUGA, ON, May 11 /PRNewswire-FirstCall/ - YM BioSciences Inc. (NYSE Amex: YMI, TSX: YM), a life sciences company developing a diverse portfolio of promising hematologyand cancer-related products, today reported operational and financial results for the third quarter of fiscal 2011, ended March 31, 2011.
"We continue to advance our JAK1/JAK2 inhibitor CYT387 in the clinic and look forward
Financial Results (CDN dollars) Revenue currently primarily consists of revenue from out-licensing contracts and interest income. Total revenue for the third quarter of fiscal 2011, ended March 31, 2011, was $0.4 million compared to $0.7 million for the third quarter of fiscal 2010, ended March 31, 2010. Total revenue for the first nine months of fiscal 2011, ended March 31, 2011, was $1.1 million compared to $2.2 million for the first nine months of fiscal 2010, ended March 31, 2010.
Licensing and product development expenses were $5.2 million for the third quarter of fiscal 2011 compared to $4.5 million for the third quarter of fiscal 2010. Licensing and product development expenses were $15.7 million for the first nine months of fiscal 2011 compared to $9.3 million for the first nine months of fiscal 2010. The increases mainly were due to increased development expenses for CYT387 offset by decreased expenses for nimotuzumab, as well as an increase in amortization expense from CYT387, CYT997, and the small molecule drug library, all acquired in January 2010, and increases in salaries, travel and office expenses as a result of restructuring and the addition of the Australian office.
General and administrative expenses were $1.9 million for the third quarter of fiscal 2011 compared with $1.6 million for the third quarter of fiscal 2010. General and administrative expenses were $7.4 million for the first nine months of fiscal 2011 compared with $5.1 million for the first nine months of fiscal 2010. The increases were due mainly to higher stock-based compensation expense, restructuring costs, bonuses awarded and increased Board of Director fees and travel expenses. These increases were partially offset by one-time costs associated with the acquisition of Cytopia incurred in fiscal 2010.
Net loss for the third quarter of fiscal 2011 was $7.2 million ($0.06 per share) compared to $5.5 million ($0.09 per share) for the same period last year. Net loss for the first nine months of fiscal 2011 was $23.2 million ($0.25 per share) compared to $12.4 million ($0.21 per share) for the same period last year.
As previously announced, on April 23, 2010, the Company entered into a Sales Agreement with Cantor Fitzgerald & Co. (CF&Co), under which the Company may, at its discretion, from time to time, sell up to a maximum of 7,750,000 of its common shares through an "at-the-market" equity offering program known as a Controlled Equity Offering. CF&Co will act as sales agent for any sales made under the Controlled Equity Offering. The common shares may be sold at market prices prevailing at the time of a sale (if any) of the common shares or at prices negotiated with CF&Co. The term of the Controlled Equity Offering extends until October 16, 2011 and the Sales Agreement does not prevent the Company from conducting additional financings. During the quarter, the Company sold 500,000 shares through the Controlled Equity Offering program at a weighted average price of US$2.7169 per common share for gross proceeds of $1,321,932 (US$1,358,460) resulting in net cash proceeds of $1,165,392.
As at March 31, 2011, the Company had cash and short-term deposits totaling $73.5 million and accounts payables and accrued liabilities totaling $3.7 million compared to $45.6 million and $2.8 million respectively, at June 30, 2010. Management believes that the cash and short-term deposits at March 31, 2011 are sufficient to support the Company's activities for at least the next 18 months.
Subsequent to the end of the quarter, the Company sold 5,225,000 shares through the Controlled Equity Offering program at a weighted average price of US$2.50 per common share for gross proceeds of $12,456,288 (US$13,072,848) resulting in net cash proceeds of $12,072,836.
As at March 31, 2011 the Company had 111,094,312 common shares and 7,429,137 warrants outstanding. As at April 30, the Company had 116,467,644 shares outstanding.
About YM BioSciences YM BioSciences Inc. is a drug development company advancing three clinical-stage products: CYT387, a small molecule, dual inhibitor of the JAK1/JAK2 kinases; nimotuzumab, an EGFR-targeting monoclonal antibody; and CYT997, a vascular disrupting agent (VDA).
CYT387 is an orally administered inhibitor of both the JAK1 and JAK2 kinases, which have been implicated in a number of immune cell disorders including myeloproliferative neoplasms and inflammatory diseases as well as certain cancers. CYT387 is currently in a Phase I/II trial in myelofibrosis. Nimotuzumab is a humanized monoclonal antibody targeting EGFR with an enhanced side effect profile over currently marketed EGFR- targeting antibodies. Nimotuzumab is being evaluated in numerous Phase II and III trials worldwide by YM's licensees. CYT997 is an orally-available small molecule therapeutic with dual mechanisms of vascular disruption and cytotoxicity, and is currently in a Phase II trial for glioblastoma multiforme. In addition to YM's three clinical stage products, the Company has a library of more than 4,000 novel compounds identified through internal research conducted at YM BioSciences Australia which are currently being evaluated.
This press release may contain forward-looking statements, which reflect the Company'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 or the ability to obtain drug product in sufficient quantity or at standards acceptable to health regulatory authorities to complete clinical trials or to meet commercial demand; and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting. Certain of the assumptions made in preparing forward-looking statements include but are not limited to the following: that CYT387, nimotuzumab and CYT997 will generate positive efficacy and safety data in ongoing and future clinical trials, and that YM and its various partners will complete their respective clinical trials and disclose data within the timelines communicated in this release. Except as required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Summary financial statements:
YM BIOSCIENCES INC. Interim Consolidated Balance Sheets (Expressed in Canadian dollars, unless otherwise indicated)
|March 31,||June 30,|
|Cash and cash equivalents||$ 21,155,781||$ 19,460,141|
|Property and equipment||104,735||84,775|
|$ 82,597,020||$ 57,774,767|
|Liabilities and Shareholders' Equity|
|Accounts payable||$ 974,398||$ 699,277|
|Share purchase warrants||1,340,524||1,473,246|
|Basis of presentation|
|$ 82,597,020||$ 57,774,767|
YM BIOSCIENCES INC. Interim Consolidated Statements of Operations, Comprehensive Income and Deficit (Expressed in Canadian dollars, unless otherwise indicated)
|Three months ended||Nine months ended|
|March 31,||March 31,|
|Out-licensing revenue||$ 217,489||$ 690,585||$ 811,262||$ 2,115,706|
|Licensing and product development||5,167,514||4,526,244||15,665,845||9,335,238|
|General and administrative||1,898,762||1,623,900||7,415,820||5,107,662|
|Loss before the undernoted||(6,678,350)||(5,440,658)||(21,961,591)||(12,276,000)|
|Loss on foreign exchange||(505,016)||(39,418)||(1,515,378)||(73,295)|
|Gain (loss) on short-term deposits||-||(10,803)||11,123||(19,909)|
|Gain on disposal of property and equipment||-||-||10,744||-|
|Loss for the period and comprehensive loss||(7,173,838)||(5,490,879)||(23,174,590)||(12,369,204)|
|Deficit, beginning of period||(183,246,067)||(153,130,276)||(167,245,315)||(146,251,951)|
|Deficit, end of period||$ (190,419,905)||$ (158,621,155)||$ (190,419,905)||$ (158,621,155)|
|Basic and diluted loss per common share||$ (0.06)||$ (0.09)||$ (0.25)||$ (0.21)|
|Weighted average number of common shares outstanding||110,459,886||64,286,027||91,921,042||58,639,741|
|Excludes common shares held in escrow for contingent additional payment related to the acquisition of Delex Therapeutics Inc.||-||2,380,953||-||2,380,953|
YM BIOSCIENCES INC. Interim Consolidated Statements of Cash Flows (Expressed in Canadian dollars, unless otherwise indicated)
|Three months ended||Nine months ended|
|March 31,||March 31,|
|Cash provided by (used in):|
|Loss for the period||$ (7,173,838)||$ (5,490,879)||$ (23,174,590)||$ (12,369,204)|
|Items not involving cash:|
|Amortization of property and equipment||20,598||14,708||59,745||48,291|
|Amortization of intangible assets||1,127,004||1,016,482||3,381,012||1,546,753|
|Loss (gain) on short-term deposits||-||10,803||(11,123)||19,909|
|Gain on disposal of property and equipment||-||-||(10,744)||-|
|Change in non-cash operating working capital:|
|Accounts receivable and prepaid expenses||12,295||250,722||(286,400)||584,317|
|Accounts payable, accrued liabilities and deferred revenue||(1,376,200)||(840,332)||322,850||(1,568,007)|
|Issuance of common shares on exercise of options||596,495||21,550||850,304||84,139|
|Issuance of common shares on exercise of warrants||135,058||-||985,217||-|
|Net proceeds from issuance of shares and warrants||1,165,392||16,067,710||44,499,915||16,067,710|
|Short-term deposits, net||1,065,425||(14,986,525)||(26,190,142)||19,543,766|
|Additions to property and equipment||(16,267)||(19,099)||(68,961)||(36,636)|
|Increase (decrease) in cash and cash equivalents||(4,105,415)||(3,775,466)||1,695,640||24,615,122|
|Net cash assumed on acquisition||-||909,579||-||909,579|
|Cash and cash equivalents, beginning of period||25,261,196||30,728,304||19,460,141||2,337,716|
|Cash and cash equivalents, end of period||$ 21,155,781||$ 27,862,417||$ 21,155,781||$ 27,862,417|
|Supplemental disclosure of non-cash transactions:|
|Issuance of common shares on acquisition of Cytopia Limited||$ -||$ 12,515,903||$ -||$ 12,515,903|
|Issuance of stock options on acquisition of Cytopia Limited||-||126,000||-||126,000|
|Issuance of broker warrants||-||175,371||-||175,371|
SOURCE YM BioSciences Inc.
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