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Nexia Announces 2003 Year-End Financial Results and Provides a Corporate Update Wednesday October 29, 7:30 am ET MONTREAL, Oct. 29 /CNW Telbec/ - Nexia Biotechnologies Inc. (TSX: NXB - News) today announced its audited financial results for the fiscal year ended August 31, 2003 and reported revenues of $1.3 million and a net loss of $10.98 million. Nexia also provided updates to its Protexia(TM) and BioSteel(R) Programs. Nexia`s 2003 Highlights: PROTEXIA(TM) - Announced its new biopharmaceutical program, Protexia(TM), a protein initially being developed to counter the toxic effects of nerve agents. - Purified small amounts of Protexia(TM) from the milk of a few transgenic goats (induced lactation). - Was awarded a US$2.67 million research contract from the U.S. Army to support the feasibility of producing Protexia(TM) in transgenic animals. - Signed a Cooperative Research and Development Agreement (CRADA) with the U.S. Army to conduct proof-of-concept studies with Protexia(TM). - Signed a Memorandum of Understanding with the Canadian Department of National Defence to support in vivo studies of Protexia(TM). BIOSTEEL(R) - Was awarded a $500,000 Defence Industry Research (DIR) grant from the Canadian Department of National Defence. - Experienced delays and technological challenges but continued to à work towards developing BioSteel(R) for both fibre and non-fibre applications, such as use in composites. Nexia will continue to work towards developing a commercializable fibre. - Received clarification from the U.S. Food and Drug Administration that BioSteel(R) sutures will require clinical data to obtain licensure for marketing. - The Company will concentrate its farm operations at the St. Telesphore facilities. CORPORATE - Reported grant and contract revenues of $929,000. - Effected a cost-reduction program to extend its financial resources. - Discontinued its Tissue Plasminogen Activator (tPA) program. Protexia(TM) Program Update 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 collaborate with both the U.S. 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 within 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. Disclosure by the U.S. Army of the results of these experiments is expected at the Joint Service Scientific Conference on Chemical & Biological Defense in Towson, MD, on November 20, 2003. - Second, conduct early pre-clinical tests, including pharmacokinetic studies, to determine residence time of Protexia(TM) in the circulation of an animal model. - Third, perform in vivo challenge studies to demonstrate that Protexia(TM) is efficacious as a protective agent in animal models. The data generated from these experiments are important for the decision to transition into a development program and attract new government development funding. BioSteel(R) Program Update 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 in 2004. 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 U.S. 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. In addition, the technological challenges experienced with the BioSteel(R) program and delays have resulted in a number of changes in the program direction with respect to the capacity requirements for transgenic production of BioSteel(R). The Company will concentrate its farm operations at the St. Telesphore facilities and as a result, the Company has recorded a write-down of $829,000. The Company has decided today to close its facility in Plattsburgh and expects to record a charge of $120,000 in the first quarter of 2004. Financial review The net loss for fiscal year 2003 decreased by $0.24 million to $10.98 million from $11.22 million for fiscal year 2002. The decease in the overall loss was a result of reductions in expenditures across all broad spending categories, including R&D, Business Development and Administrative expenses, of approximately $910,000, increases in total revenues of $368,000, due to the start of the research contract with the U.S. Army to develop Protexia(TM) and increases in investment tax credits and other government assistance of $189,000. The overall reductions in spending were offset by the costs of restructuring implemented in May 2003 of $627,000, a write-down of property, plant and equipment of $829,000 and a write-down of intellectual property of $19,000. Liquidity and capital resources Nexia had cash, cash equivalents and short-term investments of $16.97 million at August 31, 2003 a decrease of $10.15 million from $27.12 million as at August 31, 2002. In addition, Nexia had $760,000 of investment tax credits receivable and $1.05 million of other current assets. The major uses of funds during 2003 included $8.82 million used for operations and $1.07 million invested in plant, equipment and intellectual property, compared to $10.77 million and $2.61 million respectively during 2002. Under Nexia`s current operating plan, management believes that the Company`s current cash, cash equivalents, short-term investments and other current assets should be sufficient to finance its operations and capital needs for at least 20 months. CONSOLIDATED BALANCE SHEETS As at August 31 (audited) 2003 2002 $ $ ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 552,383 3,069,425 Short-term investments 16,415,440 24,048,111 Investment tax credits receivable 760,000 615,000 Receivables 649,450 353,024 Prepaids and other assets 400,930 439,510 ------------------------------------------------------------------------- Total current assets 18,778,203 28,525,070 Property, plant and equipment 5,464,259 6,955,291 Intellectual property 1,434,190 1,143,121 ------------------------------------------------------------------------- 25,676,652 36,623,482 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS` EQUITY Current Accounts payable and accrued liabilities 879,199 955,252 Deferred revenues 341,000 - Current portion of long-term 191,142 294,530 ------------------------------------------------------------------------- Total current liabilities 1,411,341 1,249,782 Long-term debt 154,490 345,633 ------------------------------------------------------------------------- 1,565,831 1,595,415 ------------------------------------------------------------------------- Shareholders` equity Capital stock 64,150,110 64,295,356 Contributed surplus 212,000 - Deficit (40,251,289) (29,267,289) ------------------------------------------------------------------------- Total shareholders` equity 24,110,821 35,028,067 ------------------------------------------------------------------------- 25,676,652 36,623,482 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT Years ended August 31 (audited) 2003 2002 $ $ ------------------------------------------------------------------------- REVENUES Contract revenues 712,000 - Interest income 583,029 926,983 ------------------------------------------------------------------------- 1,295,029 926,983 ------------------------------------------------------------------------- EXPENSES Research and development 7,121,506 7,570,300 Amortization of property, plant and equipment and Intangible assets 1,121,468 1,015,584 ------------------------------------------------------------------------- Total research and development 8,242,974 8,585,884 Investment tax credits and other government assistance (1,085,972) (896,764) ------------------------------------------------------------------------- Net research and development 7,157,002 7,689,120 Business development 1,734,876 1,950,689 Administrative 1,598,299 1,939,741 Amortization of property, plant and equipment 179,346 163,526 Foreign exchange loss (gain) 82,833 (12,882) Interest on long-term debt 51,732 86,706 Restructuring costs 627,281 - Write-down of property, plant and equipment 828,557 - Write-down of intellectual property 19,103 330,000 ------------------------------------------------------------------------- Total expenses 12,279,029 12,146,900 ------------------------------------------------------------------------- Net loss for the year 10,984,000 11,219,917 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Deficit, beginning of year 29,267,289 18,047,372 ------------------------------------------------------------------------- Deficit, end of year 40,251,289 29,267,289 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted loss per share 0.48 0.49 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding during the year 23,059,015 22,949,808 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended August 31 (audited) 2003 2002 $ $ ------------------------------------------------------------------------- OPERATING ACTIVITIES Net loss for the year (10,984,000) (11,219,917) Add items not affecting cash: Amortization of property, plant and equipment 1,212,278 1,085,982 Amortization of intellectual property 88,536 93,128 Non-cash restructuring charges 122,941 - Foreign exchange (gain)/loss 33,155 312 Write-down of property, plant and equipment 828,557 - Write-down of intellectual property 19,103 330,000 ------------------------------------------------------------------------- (8,679,430) (9,710,495) Changes in non-cash working capital balances relating to operations (137,899) (1,056,321) ------------------------------------------------------------------------- Cash flows relating to operating activities (8,817,329) (10,766,816) ------------------------------------------------------------------------- INVESTING ACTIVITIES Acquisition of property, plant and equipment (672,744) (2,308,065) Additions to intellectual property (398,708) (302,837) Purchase of short-term investments (19,166,204) (24,203,872) Maturity of short-term investments 26,798,875 33,109,719 ------------------------------------------------------------------------- Cash flows relating to investing activities 6,561,219 6,294,945 ------------------------------------------------------------------------- FINANCING ACTIVITIES Issuance of common shares 66,754 236,628 Repayment of long-term debt (294,531) (282,446) Repayment of obligations under capital leases - (64,804) ------------------------------------------------------------------------- Cash flows relating to financing activities (227,777) (110,622) ------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents (33,155) (312) ------------------------------------------------------------------------- Net change in cash and cash equivalents during the year (2,517,042) (4,582,805) Cash and cash equivalents, beginning of year 3,069,425 7,652,230 ------------------------------------------------------------------------- Cash and cash equivalents, end of year 552,383 3,069,425 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplemental cash flows information Cash paid during the year for: Interest 51,732 86,706 ------------------------------------------------------------------------- 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: Jim McDonald, Executive Vice-President - Corporate Development, Nexia Biotechnologies Inc., (450) 424-8912, jmcdonald@nexiabiotech.com -------------------------------------------------------------------------------- Source: NEXIA BIOTECHNOLOGIES INC. |
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| aus der Diskussion: | Nexia Biotech- große Zukunftsaussichten |
| Autor (Datum des Eintrages): | Bombenleger (08.11.03 16:38:17) |
| Beitrag: | 17 von 43 (ID:11277449) |
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