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Nexia Reports Third Quarter 2003 Results and Provides Program Update Thursday July 17, 8:00 am ET MONTREAL, July 17 /CNW Telbec/ - Nexia Biotechnologies Inc. (TSX: NXB - News) today announced its financial results for the third quarter of fiscal year 2003, ended May 31, 2003 and reported a net loss of $2.57 million, which was in line with its expectations. For this fiscal quarter, Nexia announced Protexia(TM) research contract revenues from the US Army in the amount of $533,000 and BioSteel(R) government funding from the Canadian Department of National Defence in the amount of $48,000. Nexia also today announced BioSteel(R) and Protexia(TM) program updates. Nexia is developing a recombinant version of human butyrylcholinesterase (Protexia(TM)), a bioscavenger which can be used as a medical countermeasure for nerve agents. Nexia continues to work with both the US Army Institute of Chemical Defense and Defence R&D Canada-Suffield to test Protexia(TM) in both in vitro and in vivo model systems. Three key milestones are targeted over the next 12 months: - First, to demonstrate in vitro binding and neutralization by Protexia(TM) of a variety of nerve agents, such as VX and tabun. - Second, early pre-clinical tests will include pharmacokinetic studies, to determine the duration of Protexia(TM) in the circulation of an animal model. - Third, Nexia is planning in vivo challenge studies to demonstrate that Protexia(TM) is efficacious as a protective agent. The data generated from these experiments are important for the decision to transition into a development program. Regarding the BioSteel(R) program, fibre development activity in conjunction with Nexia`s partner, Acordis Speciality Fibres Ltd., is ongoing with a target of achieving the required strength properties by the fall of 2003. Concerning BioSteel(R) suture development, Nexia is continuing to evaluate the nature and scope of clinical data which will be required to support a Pre-Market Approval (PMA) filing with the US Food and Drug Administration. Nexia`s ongoing BioSteel(R) activities include a number of applications-specific material evaluations that may result in partnered development programs. Conference Call and Webcast Nexia will be holding a conference call regarding this press release on Thursday July 17, 2003 at 16:10, and this call will be broadcast live on the web at www.nexiabiotech.com . Financial Results (all amounts are in Canadian dollars) For the quarter ended May 31, 2003, Nexia reported, in line with expectations a net loss of $2.57 million ($0.11 per share), a decrease of $54,000 from $2.62 million ($0.11 per share) for the quarter ended May 31, 2002. The new contract revenues from the US Army of $533,000 and decreases across all spending categories were offset by non-recurring restructuring charges of $627,000 and reduced investment tax credits and interest of $112,000. Liquidity and Capital Resources Nexia had cash and cash equivalents of $18.8 million at May 31, 2003. The major uses of funds during the nine-months ended May 31, 2003, included $7.13 million used for operations and $991,000 invested in property, plant, equipment and intellectual property. _________________________________________________________________________ CONSOLIDATED BALANCE SHEETS As at May 31, August 31, 2003 2002 $ $ _________________________________________________________________________ (unaudited) ASSETS Current Cash and cash equivalents 7,627,249 3,069,425 Short-term investments 11,207,058 24,048,111 Investment tax credits receivable 659,940 615,000 Receivables 398,846 353,024 Prepaids and other assets 470,702 439,510 _________________________________________________________________________ Total current assets 20,363,795 28,525,070 Property, plant and equipment 6,572,608 6,955,291 Intellectual property 1,439,924 1,143,121 _________________________________________________________________________ 28,376,327 36,623,482 _________________________________________________________________________ LIABILITIES AND SHAREHOLDERS` EQUITY Current Accounts payable and accrued liabilities 987,370 955,252 Current portion of long-term debt 209,275 294,530 _________________________________________________________________________ Total current liabilities 1,196,645 1,249,782 Long-term debt 203,868 345,633 _________________________________________________________________________ 1,400,513 1,595,415 _________________________________________________________________________ Shareholders` equity Capital stock 64,362,110 64,295,356 Deficit (37,386,296) (29,267,289) _________________________________________________________________________ Total shareholders` equity 26,975,814 35,028,067 _________________________________________________________________________ 28,376,327 36,623,482 _________________________________________________________________________ _________________________________________________________________________ CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICITS (Unaudited) Three-months ended Nine-months ended May 31, May 31, 2003 2002 2003 2002 $ $ $ $ _________________________________________________________________________ REVENUES Contract revenues 533,000 - 533,000 - Interest income 133,989 163,023 448,147 740,479 _________________________________________________________________________ Total revenues 666,989 163,023 981,147 740,479 EXPENSES Research and development 1,792,612 1,958,074 5,542,883 5,690,413 Amortization 283,872 265,504 821,733 738,715 _________________________________________________________________________ Total research and development 2,076,484 2,223,578 6,364,616 6,429,128 Investment tax credits and other government assistance (374,700) (457,624) (817,140) (792,050) _________________________________________________________________________ Net research and development 1,701,784 1,765,954 5,547,476 5,637,078 Business development 413,417 457,967 1,423,801 1,524,626 Administrative 437,259 499,023 1,326,074 1,384,835 Amortization 44,896 42,278 132,434 118,794 Interest on long-term debt 12,788 22,614 43,088 64,475 Restructuring costs 627,281 - 627,281 - _________________________________________________________________________ Total expenses 3,237,425 2,787,836 9,100,154 8,729,808 _________________________________________________________________________ Net Loss 2,570,436 2,624,813 8,119,007 7,989,329 _________________________________________________________________________ _________________________________________________________________________ Deficit, beginning of period 34,815,860 23,411,888 29,267,289 18,047,372 Deficit, end of period 37,386,296 26,036,701 37,386,296 26,036,701 _________________________________________________________________________ _________________________________________________________________________ Basic and diluted loss per share 0.11 0.11 0.35 0.35 _________________________________________________________________________ Weighted average number of common shares 23,095,679 22,990,053 23,044,182 22,930,432 _________________________________________________________________________ _________________________________________________________________________ CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three-months ended Nine-months ended May 31, May 31, 2003 2002 2003 2002 $ $ $ $ _________________________________________________________________________ OPERATING ACTIVITIES Net loss (2,570,436) (2,624,813) (8,119,007) (7,989,329) Add items not affecting cash flows: Amortization of property, plant and equipment 306,086 284,197 890,577 789,115 Amortization of intellectual property 22,682 23,585 63,590 68,394 Non-cash restructuring charge 122,940 - 122,940 - _________________________________________________________________________ (2,118,728) (2,317,031) (7,041,900) (7,131,820) Changes in non-cash working capital balances relating to operations 461,378 705,487 (89,836) (842,784) _________________________________________________________________________ Cash flows relating to operating activities (1,657,350) (1,611,544) (7,131,736) (7,974,604) _________________________________________________________________________ INVESTING ACTIVITIES Acquisition of property, plant and equipment (86,896) (490,072) (630,831) (1,502,601) Acquisition of intellectual property (82,929) (88,917) (360,396) (357,154) Maturity of short-term investments - - 26,798,875 33,014,503 Purchase of short-term investments (11,207,058)(17,338,519) (13,957,822)(17,494,280) _________________________________________________________________________ Cash flows relating to investing activities (11,376,883)(17,917,508) 11,849,826 13,660,468 _________________________________________________________________________ FINANCING ACTIVITIES Issuance of common shares 21,021 29,773 66,754 225,018 Repayment of long-term debt and obligations under capital leases (77,178) (72,851) (227,020) (275,084) _________________________________________________________________________ Cash flows relating to financing activities (56,157) (43,078) (160,266) (50,066) _________________________________________________________________________ Net change in cash and cash equivalents during the period (13,090,390)(19,572,130) 4,557,824 5,635,798 _________________________________________________________________________ Cash and cash equivalents, beginning of the period 20,717,639 32,860,158 3,069,425 7,652,230 _________________________________________________________________________ Cash and cash equivalents, end of the period 7,627,249 13,288,028 7,627,249 13,288,028 _________________________________________________________________________ _________________________________________________________________________ Supplemental cash flow information Interest paid 12,788 22,614 43,088 64,475 _________________________________________________________________________ About Nexia Nexia develops and manufactures complex recombinant proteins for use as biomaterials and biopharmaceutical products with medical and industrial applications. The Company`s lead group of products under development is BioSteel(R) recombinant spider silk for use in medical and industrial applications. Protexia(TM) is Nexia`s newest program in our product development pipeline. For more information, please visit Nexia`s website at www.nexiabiotech.com. Except for the historical information presented herein, matters discussed herein may constitute forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements preceded by, followed by, or that include the words "believes"; "anticipates"; "intends"; "plans"; "expects"; "estimates"; or similar statements are forward-looking statements. Such statements reflect management`s current views and are based on certain assumptions. Actual results could differ materially from those currently anticipated as a result of a number of factors, including risks and uncertainties discussed in Nexia`s filings with Canadian regulatory authorities. An additional business risk associated with the Protexia(TM) program relates to the fact that large purchases are expected to be made from a few customers. Changes in demand from these customers could significantly affect our program. There can be no assurance that such development efforts will succeed, that such products will receive required regulatory clearance or that, such products would ultimately achieve commercial success. For further information Media Contact: Jeffrey D. Turner, Ph.D., President and CEO, Nexia Biotechnologies Inc., (450) 424-8920, jturner@nexiabiotech.com Investor Relations Contact: Andrea Gilpin, Ph.D., Director, Corporate Development & Investor Relations, Nexia Biotechnologies Inc., (450) 424-8918, agilpin@nexiabiotech.com Source: Nexia Biotechnologies Inc. |
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| aus der Diskussion: | Nexia Biotech- große Zukunftsaussichten |
| Autor (Datum des Eintrages): | Bombenleger (17.07.03 22:31:47) |
| Beitrag: | 15 von 43 (ID:10145338) |
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