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Nexia Reports Second Quarter 2003 Results and Provides Programs Update Thursday April 17, 8:00 am ET MONTREAL, April 17 /CNW Telbec/ - Nexia Biotechnologies Inc. (TSX:NXB - News) today announced its financial results for the second quarter of fiscal year 2003, ended February 28, 2003 and reported a net loss of $2.9 million, which was in line with its expectations. Nexia also today announced a delay in spinning process development, a grant received for BioSteel(R) development costs, and the signing of a Cooperative Research and Development Agreement (CRADA) with the US Army for the Protexia(TM) Program. The CRADA accompanies a contract in the sum of $3.94 million from the US Army and a Memorandum of Understanding with the Canadian Army. A key technical milestone for Nexia`s BioSteel(R) commercialization activities is the development of a commercial spinning process. Although Nexia and its fibre development collaborator, Acordis Speciality Fibres, have made significant progress over the past quarter, the strength specifications are yet to be achieved. Critical parameters for fibre development include consistency, elongation, diameter, and strength, of which three of four parameters have met the specifications. Towards improving strength, Nexia has been evaluating other spider silk proteins. With early experiments using one of these new spider silk proteins and the spinning experience that Nexia has gained, it is confident that the Company will achieve the required fibre properties by the third quarter 2003, and be in a position to file a market application with the FDA in 2005. Nexia received a $500,000 Defence Industry Research (DIR) grant from the Canadian Department of Defense towards developing the next generation fibre to be incorporated into personal protection systems. The DIR is specifically designed to offset the costs related to spinning and performance testing of BioSteel(R) fibre for military applications. Nexia unveiled its new biopharmaceutical program, Protexia(TM), formerly known as NEX-91, by disclosing two collaborations: the first was a $3.94 million contract from the US Army Medical Research Materiel Command, sponsored by the US Army Medical Research Institute of Chemical Defense (ICD). Second, was a Memorandum of Understanding with Defence R&D Canada-Suffield, in Alberta. In addition, Nexia today announced the signing of a Cooperative Research and Development Agreement (CRADA) with the US Army for the Protexia(TM) program. All three of these agreements will allow the Protexia(TM) protein to be evaluated in both in vitro and in vivo systems for efficacy of the protein in binding nerve agents and conferring protection against a broad spectrum of nerve agents. Protexia(TM) is being developed for use as a pre-treatment for military personnel to counter the toxic effects of nerve agents. Protexia(TM) is a recombinant form of butyrylcholinesterase (BChE), which is expected to be manufactured in commercial quantities in the milk of Nexia`s transgenic goats. For more information regarding this new program please refer to Nexia`s website. As a result of Nexia`s increased emphasis on the Protexia(TM) program, the Company has decided to conserve resources and discontinue its tPA program. All costs relating to the tPA program have been expensed as incurred and the discontinuance of this program will have no impact on the Company`s current financial position or results of operations. Conference Call and Webcast Nexia will be holding a conference call regarding this press release on Thursday, April 17, 2003 at 4:10pm, 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 February 28, 2003, Nexia reported, in line with expectations a net loss of $2.90 million ($0.13 per share), a decrease of $220,000 from $3.12 million ($0.14 per share) for the quarter ended February 28, 2002. The decrease was primarily due to decreases in Research and Development spending, and lower business development and administrative expenses. LIQUIDITY AND CAPITAL RESOURCES As at February 28, 2003, Nexia had cash and cash equivalents of $20.7 million. The major uses of funds during the six-months ended February 28, 2003, included $5.47 million used for operations and $821,000 invested in property, plant, equipment and intellectual property. 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 fiscal 2004. However, in light of the inherent uncertainties associated with R&D programs, scale-up and commercialization of products, ability to enter into collaborative R&D agreements, the results of clinical testing, receipt of regulatory approval of certain products and ability to secure licensing agreements, it may become necessary for the Company to either (i) raise additional funds for the continuing development and marketing of its products, or (ii) delay or scale-back its development programs. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS As at February 28, August 31, 2003 2002 $ $ _________________________________________________________________________ (unaudited) ASSETS Current Cash and cash equivalents 20,717,639 3,069,425 Short-term investments - 24,048,111 Investment tax credits receivable 1,057,440 615,000 Receivables 135,389 353,024 Prepaids and other assets 649,257 439,510 _________________________________________________________________________ Total current assets 22,559,725 28,525,070 Property, plant and equipment 6,914,735 6,955,291 Intellectual property 1,379,680 1,143,121 _________________________________________________________________________ 30,854,140 36,623,482 _________________________________________________________________________ _________________________________________________________________________ LIABILITIES AND SHAREHOLDERS` EQUITY Current Accounts payable and accrued liabilities 838,590 955,252 Current portion of long-term debt 238,195 294,530 _________________________________________________________________________ Total current liabilities 1,076,785 1,249,782 Long-term debt 252,126 345,633 _________________________________________________________________________ 1,328,911 1,595,415 _________________________________________________________________________ Shareholders` equity Capital stock 64,341,089 64,295,356 Deficit (34,815,860) (29,267,289) _________________________________________________________________________ Total shareholders` equity 29,525,229 35,028,067 _________________________________________________________________________ 30,854,140 36,623,482 _________________________________________________________________________ _________________________________________________________________________ CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICITS (Unaudited) Three-months ended Six-months ended February 28, February 28, __________________________ __________________________ 2003 2002 2003 2002 $ $ $ $ _________________________________________________________________________ REVENUES Interest income 157,950 215,701 314,158 577,456 _________________________________________________________________________ EXPENSES Research and development 1,876,013 2,040,292 3,719,126 3,732,339 Amortization 279,883 247,640 537,861 473,211 _________________________________________________________________________ Total research and development 2,155,896 2,287,932 4,256,987 4,205,550 Investment tax credits (222,100) (184,426) (442,440) (334,426) _________________________________________________________________________ Net research and development 1,933,796 2,103,506 3,814,547 3,871,124 Business development 575,304 658,881 1,041,529 1,066,659 Administrative 489,595 512,565 888,815 885,812 Amortization 44,140 39,556 87,538 76,516 Interest on long-term debt 14,357 20,931 30,300 41,861 _________________________________________________________________________ Total expenses 3,057,192 3,335,439 5,862,729 5,941,972 _________________________________________________________________________ Net Loss 2,899,242 3,119,738 5,548,571 5,364,516 _________________________________________________________________________ Deficit, beginning of period 31,916,618 20,292,150 29,267,289 18,047,372 Deficit, end of period 34,815,860 23,411,888 34,815,860 23,411,888 _________________________________________________________________________ Basic and diluted loss per share 0.13 0.14 0.24 0.23 _________________________________________________________________________ Weighted average number of common shares 23,027,078 22,945,306 23,018,434 22,900,609 _________________________________________________________________________ CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three-months ended Six-months ended February 28, February 28, 2003 2002 2003 2002 __________________________ __________________________ $ $ $ $ _________________________________________________________________________ OPERATING ACTIVITIES Net loss (2,899,242) (3,119,738) (5,548,571) (5,364,516) Add items not affecting cash flows: Amortization of property, plant and equipment 303,179 264,004 584,491 504,918 Amortization of intellectual property 20,844 23,192 40,908 44,809 _________________________________________________________________________ (2,575,219) (2,832,542) (4,923,172) (4,814,789) Changes in non-cash working capital balances relating to operations (157,969) 476,823 (551,214) (1,548,271) _________________________________________________________________________ Cash flows relating to operating activities (2,733,188) (2,355,719) (5,474,386) (6,363,060) _________________________________________________________________________ INVESTING ACTIVITIES Acquisition of pro- perty, plant and equipment (252,487) (420,201) (543,935) (1,012,530) Acquisition of intellectual property (207,291) (164,037) (277,467) (268,236) Maturity of short- term investments - (86,365) (2,750,764) (155,761) Purchase of short- term investments 7,793,283 20,313,903 26,798,875 33,014,503 _________________________________________________________________________ Cash flows relating to investing activities 7,333,505 19,643,300 23,226,709 31,577,976 _________________________________________________________________________ FINANCING ACTIVITIES Issuance of common shares 45,733 138,935 45,733 195,245 Repayment of long- term debt and obligations under capital leases (75,664) (108,264) (149,842) (202,233) _________________________________________________________________________ Cash flows relating to financing activities (29,931) 30,671 (104,109) (6,988) _________________________________________________________________________ Net change in cash and cash equivalents during the period 4,570,386 17,318,252 17,648,214 25,207,928 Cash and cash equi- valents, beginning of the period 16,147,253 15,541,906 3,069,425 7,652,230 _________________________________________________________________________ Cash and cash equi- valents, end of the period 20,717,639 32,860,158 20,717,639 32,860,158 _________________________________________________________________________ _________________________________________________________________________ Supplemental cash flow information Interest paid 14,357 20,931 30,300 41,861 _________________________________________________________________________ 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 this 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 Note to Editors: photos, b-rolls, and other press kit materials are available by contacting Chantal Larouche at Nexia at (450) 424-8920 or by email clarouche@nexiabiotech.com Source: Nexia Biotechnologies Inc. |
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| aus der Diskussion: | Nexia Biotech- große Zukunftsaussichten |
| Autor (Datum des Eintrages): | Bombenleger (17.04.03 23:37:23) |
| Beitrag: | 10 von 43 (ID:9205542) |
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