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Press release from Marketwire

ProMetic Reports its First Quarter 2010 Highlights and Financial Results

Tuesday, May 11, 2010

ProMetic Reports its First Quarter 2010 Highlights and Financial Results17:15 EDT Tuesday, May 11, 2010MONTREAL, QUEBEC--(Marketwire - May 11, 2010) - ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic") today reports business highlights and financial results for the first quarter of 2010. All amounts are in Canadian Dollars unless otherwise indicated.Mr. Bruce Pritchard, the Company's Chief Financial Officer commented: "The Company's cash position, supported by the anticipated level of business in the year, allows Management to execute on generating further value from the Company's technology in the coming months". Mr. Prichard further added: "The strong cost controls implemented during 2009 will continue into 2010, in order to ensure that the cash runway is maximized, giving these commercialization strategies the best chance of success".Highlights -- In January 2010, ProMetic entered into a collaboration agreement with Abraxis BioScience, Inc. ("Abraxis") to develop and commercialize various applications deriving from ProMetic's prion capture technology platform. This is a new strategic agreement in addition to the joint- development of biopharmaceuticals from our manufacturing platform technology. ProMetic finalized an equity investment of $3 million US and a five year loan of $10 million US with Abraxis. -- In February 2010, ProMetic announced that the project with HemCon Medical Technologies, Inc. to develop a sterile, single-use antibody capture device for the removal of isoagglutinin antibodies initiated in March 2009 met its first development milestone and moved into the second phase of development. -- In the same month, Novozymes and ProMetic entered into a strategic alliance regarding proprietary albumin purification technology based upon a synthetic-ligand affinity adsorbent developed by ProMetic's UK subsidiary, ProMetic BioSciences Ltd. The new synthetic-ligand affinity adsorbent, AlbuPure(R), will be co-marketed by both companies. -- In March 2010, ProMetic announced that it had completed the first milestone of its strategic collaboration with the Wuhan Institute of Biological Products ("WIBP"), a subsidiary of China National Pharmaceutical Group Corp ("Sinopharm"), China's largest pharmaceutical company. WIBP's products will be manufactured under licence using ProMetic's proprietary protein technologies. These products will then move into clinical trials to demonstrate their bioequivalence to commercialized products in order to obtain required regulatory approval from the Chinese State Food and Drug Administration. Appointments to the Board of Directors at the May 5, 2010, Annual and Special Meeting of ShareholdersThe following members were nominated to ProMetic's Board of Directors: -- Mr. G.F. Kym Anthony, Chair of DFG Investment Advisers; -- Mr. Robert Lacroix, Senior Vice-President of CTI Capital Securities Inc.; -- Mr. Pierre Laurin, President of ProMetic; -- Mrs. Louise Menard, President of Groupe Mefor inc.; -- Mr. Paul Mesburis, Senior Portfolio Manager and Chief Compliance Officer, Excel Investment Counsel Inc.; -- Mrs. Nancy Orr, Consultant; -- Mrs. Louise Paradis, Senior Vice-President, Legal Affairs and Corporate, Secretary of Banque de Developpement du Canada; -- Dr. Roger Perrault, Independent Director; -- Mr. Bruce Wendel, Vice Chairman and Chief Executive Officer of Abraxis BioScience; and -- Mr. Benjamin Wygodny, President of Angus Partnership. Mrs. Orr and Mrs. Paradis are newly elected members to ProMetic's Board of Directors. ProMetic would like to take this opportunity to thank outgoing member of the Board, Dr. John Bienenstock for his valuable contributions over the years.2010 Guidance provided during the Annual and Special Meeting of ShareholdersDuring the Annual and Special Meeting of Shareholders, the Company's Chief Financial Officer, Mr. Bruce Pritchard, provided guidance for the first quarter, first half and full year 2010.At that time, he explained that the revenue guidance for 2010 had been adjusted to $20 million, as a result of the strengthening of the Canadian Dollar against both the British Pound and US Dollar. Mr. Pritchard also specifically mentioned that the revenue guidance in local currency was not being adjusted, but that the impact was only on the Canadian Dollar equivalent. Furthermore, the currency rate not only has the effect of reducing Canadian Dollar income, but would also reduce Canadian Dollar costs, so this, combined with ongoing cost controls, would allow the Company to maintain overall earnings guidance for the year.The revenue guidance for the first half of 2010 is $8.1 million and is consistent with the Company's plan expecting higher revenues in the second half.Financial ResultsThe following information should be read in conjunction with the financial statements for the first quarter ending March 31, 2010, as well as the Management's Discussion and Analysis for the same period.Revenues for the quarter amounted to $3.2 million. This is somewhat less than a straight 25% of the annualized revenue guidance of $20 million given at the AGM on 5 May, 2010, however it is worth reminding readers again that the revenues of the business do not accrue in a straight line during the year, and that anticipated revenues are geared towards the latter quarters in the Company's plan. Specifically, revenue from the long-term supply agreement announced in Q3 2009 is not generated evenly throughout the period Q4 2009 to Q2 2010. The full amount of the shipments however, will be recognized by the end of the second quarter of 2010.These revenues are associated to sales of affinity adsorbents to major pharmaceutical companies from the subsidiary in the UK as well as service fees associated with the development agreements with various licensees.Operating costs for the quarter totaled $5.9 million from $5.5 million in the same quarter of the previous year. This increase was mainly attributable to cost of goods sold, as the revenue in the first quarter of 2010 was driven by product sales whereas in 2009, service revenue represented a larger proportion of turnover. Costs in all other areas were down on the same period in 2009, as a result of the continued cost-control measures in place. The only exceptions were administrative costs up slightly due to professional fees and the impact of foreign exchange losses versus a profit in the previous year.ProMetic's MD&A and 2010 First Quarter Financial Statements have been filed on Sedar (www.sedar.com) and are available on the Company's web site at www.prometic.com. About ProMetic Life Sciences Inc. ProMetic Life Sciences Inc. ("ProMetic") (www.prometic.com) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand(TM) technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.Forward Looking Statements This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 24 of ProMetic's Annual Information Form for the year ended December 31, 2009, under the heading "Risk and Uncertainties related to ProMetic's business". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: Pierre Laurin President and CEO ProMetic Life Sciences Inc. p.laurin@prometic.com 1-514-341-2115 or Anne Leduc Manager, Investor Relations & Communications ProMetic Life Sciences Inc. a.leduc@prometic.com 1-514-341-2115