Press release from Marketwire
ProMetic Reports its Second Quarter 2014 Highlights and Financial Results
- Year-to-date product sales tracking ahead of 2013 at $6.3 million compared to $4.5 million with total Q2 2014 revenues of $4.4 million - Q2 2014 net profit of $23.4 million resulting from the recognition of a gain on revaluation of equity investment of ProMetic's equity interest in NantPro - IVIG, Plasminogen and PBI-4050 clinical programs and regulatory pathway confirmed with regulators and on track - initiation in patients expected in the second half of 2014 - Successful completion of the PBI-4050 clinical Phase I demonstrating safety and tolerability of the compound without any serious adverse events reported
Thursday, August 14, 2014
ProMetic Reports its Second Quarter 2014 Highlights and Financial Results16:00 EDT Thursday, August 14, 2014
LAVAL, QUEBEC--(Marketwired - Aug. 14, 2014) - ProMetic Life Sciences Inc. (TSX:PLI)(OTCQX:PFSCF) ("ProMetic" or the "Corporation") today reported revenues of $4.4 million and a net profit of $23.4 million for the second quarter ended June 30, 2014 resulting from the recognition of a gain on revaluation of the equity investment of ProMetic's equity interest in NantPro.
"Our product sales for the first six months of 2014 are consistent with our expectations", stated Mr. Bruce Pritchard, Chief Operating Officer and Chief Financial Officer of ProMetic Life Sciences Inc. "We expect our product sales to remain in line with expectations during the remainder of the year. The increase in overall expenses incurred so far in 2014 is also consistent with our stated commitments regarding the timely advancement of our various clinical programs", added Mr. Pritchard.
"The significant impact on our financial statements of the NantPro transaction is reflective of the underlying value residing within our plasma-derived therapeutics business, particularly given that this reflects only the IVIG market in the U.S. alone", said Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic Life Sciences Inc. "We anticipate even more value creation to take place in the coming months as a result of the ongoing development and advancement of our plasma products pipeline", added Mr. Laurin.
Second Quarter 2014 Highlights and Results
Second Quarter 2014 Business Highlights
- The Corporation reported a successful Pre-Investigational New Drug ("Pre-IND) meeting with the U.S. Food and Drug Administration ("FDA") for its IVIG product currently under development under NantPro,LLC.
- The Corporation presented new pre-clinical data at the 2014 International Society of Nephrology conference held in Bergamo, Italy showing that PBI-4050 4050 brought blood glucose levels back into the normal range in animal models designed to reproduce long term complications related to human Type II diabetes.
- The Corporation presented new pre-clinical data at the 2014 annual meeting of the European Association for the Study of the Liver held in London, UK. The new data supports the claim that PBI-4050's anti-fibrotic activity could also address various liver conditions such as non-alcoholic steatohepatitis ("NASH"), a condition affecting 2% to 5% of Americans, as well as liver cancer.
- The Corporation announced an increase in its ownership in NantPro following the amendment of its related corporate and commercial agreements with NantPharma, LLC. The amended agreements provide ProMetic with the effective control of NantPro and a greater portion of the future value and revenues associated with the development and sales of IVIG in the U.S. market.
- The Corporation received a $5.6 million purchase order under its ongoing supply agreement with Octapharma, a leading, Swiss, independent, global plasma fractionation company that specializes in human proteins.
- The Corporation successfully completed its PBI-4050 Phase I clinical trial in 40 healthy volunteers where ProMetic's PBI-4050 was found to be safe and very well tolerated without any serious adverse events reported in any of the 5 cohorts tested.
More on Second Quarter 2014 Financial Results
The financial information for the second quarter ended June 30, 2014 should be read in conjunction with the Corporation's interim consolidated financial statements as well as the Management's Discussion and Analysis for the quarter ended June 30, 2014.
Total revenues for the second quarter ended June 30, 2014 were $4.4 million compared to $5.2 million for the second quarter ended June 30, 2013 representing a decrease of $0.8 million. Total revenues for the six months ended June 30, 2014 were $10.1 million compared to $9.6 million during the comparative 2013 period, an increase of $0.5 million.
Revenues from the sale of goods amounted to $3.1 million during the second quarter of 2014 compared to $2.6 million for the second quarter ended June 30, 2013 and for the six months ended June 30, 2014 were $6.3 million compared to $4.5 million for the same period in 2013 representing an increase of $1.8 million. Service revenues for the second quarter ended June 30, 2014 were $1.3 million compared to $2.6 million for the second quarter ended June 30, 2013 representing a $1.3 million decrease. Total service revenues for the six months ended June 30, 2014 were $3.8 million compared to $5.1 million for the corresponding 2013 period. The decrease for both 2014 periods over the same 2013 periods are mainly due to the fact that NantPro is now consolidated since May 8, 2014 and consequently going forward, these transactions are eliminated upon consolidation.
There were no licensing revenues for either the second quarter or six months period ended June 30, 2014. However, the Corporation still anticipates delivering licensing revenues during the latter part of 2014.
ProMetic generated a net profit of $23.4 million for the quarter ended June 30, 2014 compared to a net loss of $2.5 million for the quarter ended June 30, 2013. The net profit generated is mainly due to the recognition of a gain on revaluation of the equity investment of $24.3 million representing the difference between the fair value and the carrying amount of ProMetic's equity interest in NantPro just before the transaction.
Second Quarter 2014 Conference Call Information
ProMetic will host a conference call at 11:00am (EST) on Friday, August 15, 2014. The telephone numbers to access the conference call are (647) 788-4922 (International) and 1-877-223-4471 (Toll-free). A replay of the call will be available from August 15, 2014 at 2:00 p.m. until August 22, 2014. The numbers to access the replay are 1-416-621-4642 (passcode: 81365776) and 1-800-585-8367 (passcode: 81365776). A live audio webcast of the conference call will be available through the following: http://www.gowebcasting.com/5831
Additional Information in Respect to the Second Quarter ended June 30, 2014
ProMetic's MD&A and interim consolidated financial statements for the quarter ended June 30, 2014 have been filed on Sedar (http://www.sedar.com/) and will be available on the Corporation's website at www.prometic.com.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (www.prometic.com) is a long established biopharmaceutical company with globally recognized expertise in bioseparations, plasma-derived therapeutics and small-molecule drug development. ProMetic offers its state of the art technologies for large-scale purification of biologics, drug development, proteomics and the elimination of pathogens to a growing base of industry leaders and uses its own affinity technology that provides for highly efficient extraction and purification of therapeutic proteins from human plasma in order to develop best-in-class therapeutics and orphan drugs. ProMetic is also active in developing its own novel small-molecule therapeutic products targeting unmet medical needs in the field of fibrosis, cancer and autoimmune diseases/inflammation. A number of both the plasma-derived and small molecule products are under development for orphan drug indications. Headquartered in Laval (Canada), ProMetic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and business development activities in the U.S., Europe and Asia.
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 in ProMetic's Annual Information Form for the year ended December 31, 2013, 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.
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