RepliCel Announces 2014 Third Quarter Financial Results - Seite 2

David Hall further commented, "On October 1st, Lee Buckler joined RepliCel as Vice President of Business and Corporate Development. Lee is a well-established member of the regenerative medicine industry with broad industry contacts that will support our concerted licensing and business development efforts already initiated by our technology transfer and licensing agreement with the Shiseido Company. Such partnerships are important for the validation they represent, the financial and operational support they bring to co-developing specific assets, and the non-dilutive financing they bring to use in support of our other programs."

"In October," continued Hall, "we held our joint steering committee meeting with the Shiseido team. We are extremely pleased with the manufacturing and technical progress Shiseido has made in a very short period of time. We believe their progress points to both companies advancing Phase 2 pattern baldness clinical activities in the near future."

Corporate Outlook through Q1 2015

Anticipated upcoming milestones and activities through Q1 2015 may include:

• Initiation of a Phase 1/2 Canadian clinical trial for Achilles tendinosis with a 6 month interim clinical data readout
  
  
• Initiation of a Phase 1 clinical trial in Germany for aged and sun damaged skin with a 6 month interim clinical data readout
  
  
• Initiation of a Phase 2 clinical trial in Germany for pattern baldness
  
  
• Shiseido Company, Limited ("Shiseido") initiating its clinical trial for pattern baldness in Japan
  
  
• Advancement of second generation dermal injector device (RCI-02)
  
  
• Potential partnerships
  
  

Financial Results

The total comprehensive loss for the three and nine-month periods ended September 30, 2014, was $1,224,924 or $0.02 per basic and diluted share and $3,828,870 or $0.08 per basic and diluted share, compared to a total comprehensive income of $2,613,456 or $0.06 per basic and diluted share and $1,013,154 or $0.02 per basic and diluted share for the three and nine-month periods ended September 30, 2013. There was no revenue from operations during the three and nine-month periods ended September 30, 2014. During the three and nine-month periods ended September 30, 2013 the Company completed a Collaboration and Technology Development Transfer Agreement with Shiseido whereby Shiseido paid RepliCel an upfront fee of $4,120,400 (¥ 400,000,000). Total expenses for the three and nine-month periods ended September 30, 2014 was $1,262,108 and $3,819,705 compared to total expenses of $887,017 and $2,594,144 for the three and nine-month periods ended September 30, 2013. The increase in expenses for the three and nine-month periods ended September 30, 2014 compared to the three and nine-month periods ended September 30, 2013 was primarily the result of advancing the pre-clinical work for RCT-01 and RCS-01, development of the RCI-02 injector device prototype, improvements in the cell replication process for RCH-01 in preparation for our submission to regulatory authorities and incremental expenditure on intellectual property during the last three quarters. Also, the Company incurred additional costs in 2014 as a result of listing on the TSX Venture Exchange and an overall increase to operational activities in 2014.