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Second Quarter 2004 Financial Results Reported by Nexia Thursday April 15, 8:01 am ET MONTREAL, April 15 /CNW Telbec/ - Nexia Biotechnologies Inc. (TSX: NXB - News) today announced its financial results for the second quarter of fiscal 2004, ending February 29, 2004 and reviewed the achievement of Protexia(TM) milestones. ADVERTISEMENT On January 22, 2004 - Nexia reported positive results from the Protexia(TM) "in vivo" efficacy studies conducted by the U.S. Army`s Institute for Chemical Defense (ICD). The studies evaluated the ability of Protexia(TM), a recombinant form of human butyrylcholinesterase (BChE), to protect laboratory animals from the toxic effects of nerve agents. The experimental program is a technical collaboration between ICD and Nexia. Nexia purified the Protexia(TM) from the milk of transgenic goats and ICD demonstrated Protexia(TM)`s ability to protect animals from the toxic effects of organophosphate nerve agents. On April 13, 2004 - Nexia announced the successful completion of the pharmacokinetic (PK) study for Protexia(TM) - the final pre-development milestone. These studies, conducted by the ICD and Defence R&D Canada- Suffield, confirmed an appropriate PK profile for Protexia(TM) in experimental animal models. Completion of this milestone triggers the Protexia(TM) drug development program including; transgenic herd scale-up, Good Manufacturing Practises (GMP) purification process development and completion of the pre- clinical studies to support the filing of an Investigational New Drug Exemption (IND) with the US FDA. Following 9/11, the US government has mounted an intensive anti-terrorism campaign and has allocated unprecedented financial resources to develop technologies and products to address these threats. Given the urgent civilian requirement and Protexia(TM)`s demonstrated effectiveness as a countermeasure for chemical weapons, Nexia will be expanding its Protexia(TM) drug development program to add the civilian post-exposure therapy (treatment) indication, which is a significantly larger market than its existing military battlefield prophylaxis indication. Regarding BioSteel(R), Nexia has decided to refocus fibre development towards biopolymer sales and specialized nano-scale fibre applications for spider silk and away from traditional fibres and yarns. This decision was prompted by the emerging interest in nanofibres and by the ongoing technical challenges of producing bulk, cost competitive spider silk fibres with superior mechanical properties, especially strength. Nexia has suspended it`s outsourcing of spinning micron-sized fibres with Acordis SF and stopped its in- house spinning effort. Spinning of BioSteel(R) proteins into nanometer diameter fibres has been achieved and Nexia is now determining the product specifications for medical and micro-electronic applications. Financial Update ---------------- For the quarter ending February 29th, 2004, Nexia reported, in line with expectations that the net loss decreased by $386,000 to $2.51 million ($0.11 per share) from $2.90 million ($0.13 per share) for the quarter ended February 28, 2003. The decrease was primarily due to reductions in research and development expenditures and increases in contract revenue from the ICD of $252,000. Contract revenues for the quarter ended February 29th, 2004 increased to $252,000 from nil for the quarter ended February 28, 2003. The revenues relate to the research contract with the ICD to develop Protexia(TM). Interest revenues for the quarter ended February 29th, 2004 decreased by $53,000 to $105,000 from $158,000 for the quarter ended February 28, 2003. The decrease in interest revenues was primarily due to lower cash balances. Gross research and development expenses, including amortization expense of $224,000 ($280,000 in 2003), for the quarter ended February 29th, 2004 decreased by $293,000 to $1.86 million from $2.16 million for the quarter ended February 28, 2003. Investment tax credits and other government assistance ("ITC") in the quarter ended February 29th, 2004 increased by $86,000 to $308,000 from $222,000 for the quarter ended February 28, 2003. Investment tax credits decreased by $24,000 due to a reduction in research and development salary expenses. During the current quarter, the Company recorded grants of $110,000 from the Canadian Department of National Defense. Business development expenses for the quarter ended February 29th, 2004 increased by $236,000 to $811,000 from $575,000 for the quarter ended February 28, 2003. This increase was primarily due to increases in compensation expenses related to certain terminations and incentives. Administrative expenses were stable at $456,000 for the quarter ended February 29th, 2004 in comparison to $455,000 for the quarter ended February 28, 2003. Nexia had cash and cash equivalents of $12.9 million at February 29th, 2004. The major uses of funds during the six-month ended February 29th, 2004, included $4.01 million used for operations and $84,000 invested in property, plant, equipment and intellectual property, compared to $5.47 million and $821,000 respectively for the six-month ended February 28, 2003. As of March 31, 2004, the Company has 23,314,889 shares outstanding. 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 through early into fiscal 2006. Conference Call and Web cast Nexia will be holding a conference call on April 15, 2004 at 16:10, and this call will be broadcast live on the web at www.nexiabiotech.com . About Nexia Nexia develops and manufactures complex recombinant proteins in the milk of transgenic goats for medical applications. Nexia`s strength is producing proteins that cannot be made commercially using other recombinant systems. The Company`s products are Protexia(TM) and BioSteel(R). Protexia(TM) is being developed as a military prophylaxis and as a post-exposure therapy for civilian casualties of domestic terrorist attacks. BioSteel(R), a recombinant spider silk, is a commercially available biopolymer and is under development for use in nanofiber applications. 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. << CONSOLIDATED BALANCE SHEETS As at February 29, August 31, 2004 2003 $ $ (unaudited) ASSETS Current Cash and cash equivalents 12,860,319 552,383 Short-term investments - 16,415,440 Investment tax credits receivable 1,084,500 760,000 Receivables 284,683 649,450 Prepaids and other assets 464,861 400,930 _________________________________________________________________________ Total current assets 14,694,363 18,778,203 Property, plant and equipment 4,881,980 5,349,778 Intellectual property 1,458,932 1,434,190 Long-term assets held-for-sale 36,278 114,481 _________________________________________________________________________ 21,071,553 25,676,652 _________________________________________________________________________ _________________________________________________________________________ LIABILITIES AND SHAREHOLDERS` EQUITY Current Accounts payable and accrued liabilities 967,295 879,199 Deferred revenues 89,857 341,000 Current portion of long-term debt 199,505 191,142 _________________________________________________________________________ Total current liabilities 1,256,657 1,411,341 Long-term debt 52,602 154,490 _________________________________________________________________________ 1,309,259 1,565,831 _________________________________________________________________________ Shareholders` equity Capital stock 64,171,131 64,150,110 Contributed surplus 218,751 212,000 Deficit (44,627,588) (40,251,289) _________________________________________________________________________ Total shareholders` equity 19,762,294 24,110,821 _________________________________________________________________________ 21,071,553 25,676,652 _________________________________________________________________________ _________________________________________________________________________ CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT (Unaudited) Three-months Three-months Six-months Six-months ended ended ended ended February 29, February 28, February 29, February 28, 2004 2003 2004 2003 $ $ $ $ REVENUES Contract revenues 252,450 - 505,150 - Interest income 104,937 157,950 213,491 314,158 ------------------------------------------------------------------------- Total revenues 357,387 157,950 718,641 314,158 ------------------------------------------------------------------------- EXPENSES Research and development 1,639,612 1,876,013 2,913,915 3,719,126 Amortization 223,785 279,883 464,199 537,861 ------------------------------------------------------------------------- Total research and development 1,863,397 2,155,896 3,378,114 4,256,987 Investment tax credits and other government assistance (307,949) (222,100) (495,536) (442,440) ------------------------------------------------------------------------- Net research and development 1,555,448 1,933,796 2,882,578 3,814,547 Business development 811,021 575,304 1,171,734 1,041,529 Administrative 455,629 454,758 806,398 855,779 Amortization 32,597 44,140 69,584 87,538 Loss on sale of fixed assets 12,175 - 12,175 - (Gain) Loss on foreign exchange (4,175) 34,837 14,347 33,036 Interest on long-term debt 8,432 14,357 17,667 30,300 Restructuring costs - - 120,457 - ------------------------------------------------------------------------- Total expenses 2,871,127 3,057,192 5,094,940 5,862,729 ------------------------------------------------------------------------- Net Loss (2,513,740) (2,899,242) (4,376,299) (5,548,571) _________________________________________________________________________ Deficit, beginning of period 42,113,848 31,916,618 40,251,289 29,267,289 ------------------------------------------------------------------------- Deficit, end of period 44,627,588 34,815,860 44,627,588 34,815,860 _________________________________________________________________________ Basic and diluted loss per share 0.11 0.13 0.19 0.24 _________________________________________________________________________ Weighted average number of common shares 23,133,330 23,027,078 23,129,527 23,018,434 _________________________________________________________________________ CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three-months Three-months Six-months Six-months ended ended ended ended February 29, February 28, February 29, February 28, 2004 2003 2004 2003 OPERATING ACTIVITIES Net loss (2,513,740) (2,899,242) (4,376,299) (5,548,571) Add items not affecting cash flows: Loss on sale of fixed assets 12,175 - 12,175 - Stock based compensation expense 6,751 - 6,751 - Amortization of property, plant and equipment 230,376 303,179 483,443 584,491 Amortization of intellectual property 26,006 20,844 50,340 40,908 ------------------------------------------------------------------------- (2,238,432) (2,575,219) (3,823,590) (4,923,172) Changes in non-cash working capital balances relating to current operations (319,176) (157,969) (186,711) (551,214) ------------------------------------------------------------------------- Cash flows relating to operating activities (2,557,608) (2,733,188) (4,010,301) (5,474,386) ------------------------------------------------------------------------- INVESTING ACTIVITIES Acquisition of property, plant and equipment (5,395) (252,487) (8,574) (543,935) Acquisition of intellectual property (21,767) (207,291) (75,077) (277,467) Maturity of short-term investments 5,208,382 7,793,283 16,415,440 26,798,875 Purchase of short-term investments - - - (2,750,764) Proceeds from disposition of fixed assets 58,952 - 58,952 - ------------------------------------------------------------------------- Cash flows relating to investing activities 5,240,172 7,333,505 16,390,741 23,226,709 ------------------------------------------------------------------------- FINANCING ACTIVITIES Issuance of common shares 1,256 45,733 21,021 45,733 Repayment of long-term debt (47,264) (75,664) (93,525) (149,842) ------------------------------------------------------------------------- Cash flows relating to financing activities (46,008) (29,931) (72,504) (104,109) ------------------------------------------------------------------------- Net change in cash and cash equivalents during the period 2,636,556 4,570,386 12,307,936 17,648,214 Cash and cash equivalents, beginning of the period 10,223,763 16,147,253 552,383 3,069,425 ------------------------------------------------------------------------- Cash and cash equivalents, end of the period 12,860,319 20,717,639 12,860,319 20,717,639 ------------------------------------------------------------------------- Supplemental cash flow information - Interest paid 8,432 14,357 17,667 30,300 _________________________________________________________________________ >> http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=35334 For further information Jeffrey D. Turner, Ph.D., President and CEO, Nexia Biotechnologies Inc., (450) 424-8920 or at jturner@nexiabiotech.com -------------------------------------------------------------------------------- Source: NEXIA BIOTECHNOLOGIES INC. |
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| aus der Diskussion: | Nexia Biotech- große Zukunftsaussichten |
| Autor (Datum des Eintrages): | Bombenleger (29.04.04 11:41:58) |
| Beitrag: | 23 von 43 (ID:12914490) |
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