EDMONTON, April 28 /CNW/ - Biomira Inc. (Nasdaq:BIOM) (TSX:BRA) today
reported financial results for the three months ended March 31, 2005.
Financial Update
Financial results for the three months ended March 31, 2005 reflect a
consolidated net loss from operations of $4.4 million or $0.06 per share
compared to $4.9 million or $0.07 per share for the same period in 2004. The
decreased net loss of $0.5 million in 2005 arises from lower revenues of
$0.1 million, offset by reductions in research and development expenditures of
$0.3 million, general and administrative expenses of $0.2 million and other
expenses of $0.1 million. Overall, the results of operations for the first
quarter of 2005 have remained fairly consistent with the same period in 2004.
Biomira's financial reserves total $34.1 million in cash and short-term
investments as at March 31, 2005, a decrease of $4.5 million from the year end
position due to funding of operations.
For a further discussion of the Company's financial results for the three
months ended March 31, 2005, please refer to the Company's unaudited
consolidated financial statements and the Company's full Management Discussion
& Analysis of Financial Condition and Results of Operations included in this
news release.
Highlights From the First Quarter
BLP25 Liposome Vaccine (L-BLP25) Phase II Safety Study commences to
assess safety of the vaccine formulation to be used in Phase III study. Both
studies are for non-small cell lung cancer (NSCLC) indications.
We advised that L-BLP25 Phase IIb data was accepted for presentation at
the American Society of Clinical Oncology (ASCO) Meeting in May. A poster
presentation and poster are to be presented by two of the clinical
investigators from Phase IIb study.
Christopher S. Henney, PhD, DSc. joins our Board of Directors.
Biomira Inc.
Biomira is a biotechnology company specializing in the development of
innovative therapeutic approaches to cancer management. Biomira's commitment
to the treatment of cancer currently focuses on the development of synthetic
vaccines and novel strategies for cancer immunotherapy. We are The Cancer
Vaccine People(TM).
Management's Discussion and Analysis of Financial Condition and Results
of Operations
Management's Discussion and Analysis of Financial Condition and Results
of Operations (MD&A), prepared as at April 15, 2005, should be read in
conjunction with the unaudited consolidated financial statements and
accompanying notes for the three months ended March 31, 2005, included
hereafter, as well as the audited consolidated financial statements and MD&A
for the fiscal year ended December 31, 2004. Except as discussed below, all
other factors referred to and discussed in the MD&A for fiscal 2004 remain
substantially unchanged.
Overview of the Business
Biomira Inc. is an international biotechnology company operating
primarily in a single business segment, the research and development of
innovative therapeutic approaches to cancer management. We are focused on
developing synthetic vaccines and novel strategies for cancer immunotherapy.
Immunotherapy is a treatment approach designed to induce protective immune
responses that will control the growth of cancers, prevent or delay metastasis
or spreading, and increase the survival of cancer patients. Our strategic
mission is to become a forward integrated, global products-oriented
biotechnology company.
Corporate resources in the first quarter of 2005 were directed toward the
continued development of L-BLP25. Biomira and its collaborator for L-BLP25,
Merck KGaA of Darmstadt, Germany, collectively the Companies, recently
announced the commencement of a Phase II Safety Study to assess the safety of
the vaccine formulation that the Companies expect to use in the Phase III
trial. This formulation incorporates manufacturing changes put in place to
help ensure the future commercial supply of the vaccine. The Phase II Safety
Study is expected to involve eight sites in Canada and will enrol up to 20 men
and women with NSCLC. The trial is expected to be fully enrolled in the third
quarter of 2005. The large multi-national Phase III study is expected to
commence toward the end of 2005.
The Companies have been informed that two abstract submissions for the
upcoming American Society of Clinical Oncology (ASCO) Meeting have been
accepted for presentation. The meeting will be held in Orlando, FL, May 13-17,
2005.
Both presenters are clinical investigators on our L-BLP25 Phase IIb
trial. Dr. Nevin Murray is from the British Columbia Cancer Agency, Vancouver,
British Columbia. His presentation is entitled, "A Liposomal MUC1 vaccine for
treatment of non-small cell lung cancer (NSCLC); updated survival results from
patients with Stage IIIB disease", and will be part of a poster session and
poster discussion on data up to the November 2004 survival update. Dr. Denis
Soulieres is from HFopital Notre-Dame du CHUM Centre D'Oncologie in Montreal,
Quebec. His presentation entitled, "A Liposomal MUC1 vaccine for treatment of
non-small cell lung cancer (NSCLC): Differences in QOL assessments for
Stage IIIBLR and IV patients", will be part of a poster session. "QOL" is
Quality of Life.
The U.S. Food and Drug Administration (FDA) granted Fast Track status to
L-BLP25 for its proposed use in the treatment of NSCLC. The Fast Track
designation is an important step in the development of L-BLP25 and may help
bring this potentially promising drug to patients more quickly.
"We are excited about the potential for this product candidate," said
Alex McPherson, MD, PhD, President and CEO of Biomira Inc. "Our results from
the subset of patients with Stage IIIB locoregional disease who were treated
with L-BLP25 as part of our Phase IIb study were very encouraging and provide
the impetus for all of the work and planning being carried on now."
We also recently announced the resignation from the Board of Directors of
Dr. Sheila Moriber Katz and the subsequent appointment of Christopher S.
Henney, PhD, DSc. Dr. Henney is a co-founder of three major publicly held U.S.
biotechnology companies, Immunex Corporation, ICOS (Nasdaq:ICOS) and Dendreon
Corporation (Nasdaq:DNDN). Dr. Henney was also the Chairman and Chief
Executive Officer of Dendreon Corporation. He serves on the Board of Directors
of Bionomics Ltd. (ASX:BNO; OCT:BMICY), in Adelaide, South Australia, and as
Chairman of Structural Genomix, a privately held company in San Diego, CA. In
March of this year, Dr. Henney was appointed as Chairman of Xcyte Therapies
Inc. (Nasdaq:XCYT).
Results of Operations
Financial results for the three months ended March 31, 2005 reflect a
consolidated net loss from operations of $4.4 million or $0.06 per share
compared to $ 4.9 million or $0.07 per share for the same period in 2004. The
decreased net loss of $0.5 million in 2005 arises from lower revenues of
$0.1 million, offset by reductions in research and development expenditures of
$0.3 million, general and administrative expenses of $0.2 million and other
expenses of $0.1 million. Overall, the results of operations for the first
quarter of 2005 have remained fairly consistent with the same period in 2004.
Revenues
Contract research and development revenue for the three months ended
March 31, 2005, totalling $0.6 million compared to $0.5 million for the same
period in 2004, represents contract research and development funding received
from Merck KGaA associated with L-BLP25. The increase in contract research and
development revenues is attributable to increased revenues associated with
clinical expenditures incurred by Biomira in preparation of the planned
L-BLP25 Phase II Safety Study and Phase III clinical trial, offset by
decreased revenue resulting from the wind down of existing studies. Licensing
revenues from collaborative arrangements for the three months ended March 31,
2005, totalling $0.1 million compared to $0.3 million for the same period in
2004, represents the amortization of upfront payments received from Merck KGaA
and upfront sub-licensing fee from CancerVac upon commencement of the
respective collaborations. The decreased revenue primarily results from return
of the Theratope(R) vaccine development and commercialization rights by Merck
aA in June 2004 and the recognition into income of the remaining related
deferred revenues at that time. Finally, licensing, royalties and other
revenue for the three months ended March 31, 2005, totalling $0.2 million, was
similar to the same period in 2004. Licensing, royalties and other revenue
relates to contract manufacturing activities utilizing various Biomira
patented technologies and compounds for external customers.
Research and Development
Research and development expenditures for the three months ended
March 31, 2005 totalled $3.5 million compared to $3.8 million for the same
period in 2004. The decrease in research and development expenditures is
attributable to the winding down of clinical activities associated with the
completion of existing studies. Offsetting this decrease were increased
expenditures associated with the planned L BLP25 Phase II Safety Study and
Phase III clinical trial costs including development of clinical protocols and
procurement and manufacturing of clinical materials. In addition, other costs
include clinical site wrap up expenses of existing clinical trials.
General and Administrative
General and administrative expenses for the three months ended March 31,
2005 totalled $1.7 million compared to $1.9 million for the same period in
2004. The decrease of $0.2 million is mainly due to incremental costs incurred
in the first quarter of 2004 relating to the settlement of an outstanding
litigation.
Marketing and Business Development
Marketing and business development expenditures for the three months
ended March 31, 2005, totalling $0.3 million, was similar to the same period
in 2004. Marketing and business development expenditures include corporate
administrative expenses associated with these functions, as well as costs
associated with licensing activities related to pre-clinical and early stage
technologies.
Amortization
Amortization expense for the three months ended March 31, 2005, totalling
$0.1 million, was similar to the same period in 2004. Amortization expense
relates to facility leaseholds and equipment, certain licensing rights, and
other assets.
Investment and Other Income
Investment and other income for the three months ended March 31, 2005,
totalling $0.4 million, was similar to the same period in 2004. Investment and
other income comprise income from cash and investments and foreign exchange
gains and losses. Income for the three months ended March 31, 2005 from cash
and investments totalling $0.2 million and from foreign exchange gains
totalling $0.2 million, were both similar to the same period in 2004.
Summary of Quarterly Results
The following is selected quarterly consolidated financial information
from our unaudited quarterly financial statements for each of the eight most
recently completed quarters ending March 31, 2005. Certain of the comparative
figures have been reclassified to conform to the current period's
presentation.
<<
(expressed in 000's except per share data)
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For the three month period ended
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Mar. 31, Dec. 31, Sept. 30, June 30,
2005 2004 2004 2004
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Total Revenue $ 804 $ 974 $ 531 $ 6,493(1)
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Research and
development cost $ 3,507 $ 3,198 $ 3,229 $ 3,358
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Net (loss) income $ (4,358) $ (3,581) $ (4,804) $ 1,012
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Basic and diluted (loss)
income per share $ (0.06) $ (0.05) $ (0.06) $ 0.01
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Common shares outstanding 78,360 78,340 72,562 72,562
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Weighted average number of
common shares outstanding 78,352 72,941 72,560 72,558
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For the three month period ended
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Mar. 31, Dec. 31, Sept. 30, June 30,
2004 2003 2003 2003
Restated(2)
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Total Revenue $ 943 $ 674 $ 679 $ 897
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Research and
development cost $ 3,791 $ 2,853 $ 3,433 $ 4,292
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Net loss $ (4,852) $ (4,632) $ (4,450) $(5,372)(2)
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Basic and diluted loss
per share $ (0.07) $ (0.07) $ (0.07) $ (0.09)
-------------------------------------------------------------------------
Common shares outstanding 72,559 72,545 63,546 63,542
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Weighted average number of
common shares outstanding 72,555 62,498 59,145 56,910
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(1) The increased revenues for the three months ended June 30, 2004
resulted from the recognition into income of the remaining deferred
licensing revenues related to Theratope, totalling $5.9 million, due
to the return of the Theratope development and commercialization
rights from Merck KGaA announced in June 2004.
(2) The adoption of the amendments to CICA Handbook Section 3860, as
described under the heading "Changes in Accounting Policies", has
resulted in a restatement of the financial statements for the three
month period ended June 30, 2003 to present the September 26, 2001
convertible debentures, which were fully repaid in May 2003, as a
liability instead of an equity instrument on the consolidated balance
sheets. The related interest, foreign exchange gain (loss), carrying
charges and accretion charges totalling $160 have been reclassified
to the Consolidated Statements of Operations instead of being
presented as an adjustment on the Consolidated Statements of Deficit.
Liquidity and Capital Resources
Liquidity
Biomira's financial reserves total $34.1 million in cash and short-term
investments as at March 31, 2005, a decrease of $4.5 million from the year end
position due to funding of operations. Current and projected cash burn is
expected to remain at this level until we have finalized our clinical strategy
and received clearance from the regulatory agencies to undertake the pivotal
Phase III registration trial for L-BLP25 in NSCLC.
Working capital, defined as current assets less current liabilities,
decreased by $4.1 million from the year end position, to $33.0 million from
$37.1 million and is attributable to the $4.5 million decrease in cash
reserves largely offset by a $0.4 million reduction in accounts payable and
accrued liabilities. The decrease in accounts payable and accrued liabilities
is mainly attributable to a reduction in compensation accruals as a result of
payments made during the first quarter of 2005.
Capital Resources
Under the U.S. $100 million Base Shelf Prospectus registered with the
applicable regulatory authorities in Canada and the U.S. on July 13, 2004, and
expected to remain in place into the third quarter of 2006, just over U.S.
$87 million is still available for future financings. In addition, there are
3.6 million warrants outstanding from previous financings, at a weighted-
average exercise price of U.S. $2.56. Based on our NASDAQ closing share price
of U.S. $1.86 on March 31, 2005, approximately 0.5 million warrants were in
the money, representing approximately $0.9 million (U.S. $0.8 million) if
fully exercised. Assuming continuing investor support for our equity
offerings, the Base Shelf Prospectus should allow us to pursue financing
opportunities sufficient to fund our expected programs in the foreseeable
future.
Contractual Obligations and Contingencies
In our continuing operations, we have entered into long-term contractual
arrangements from time to time for our facilities, debt financing, the
provision of goods and services, and acquisition of technology access rights,
among others. The contractual obligations arising from these arrangements,
currently in force over the next ten years, are disclosed in the MD&A section
of our 2004 Annual Report. During the three months ended March 31, 2005, we
did not enter into any new material long-term contractual obligations.
Off-Balance Sheet Arrangements
During the three months ended March 31, 2005, we have not entered into
any off-balance sheet arrangements.
Transactions with Related Parties
During the three months ended March 31, 2005, we did not enter into any
material transactions with related parties.
Outlook
Until one of our products receive regulatory approval and is successfully
commercialized, we will continue to incur operating losses. The magnitude of
these operating losses will be largely affected by the timing and scope of
future clinical trials and pre-launch activities related to our lead products,
as well as any new initiatives. Finally, the duration of the pre-operating
losses will depend on the scientific results of such clinical trials.
We believe that our cash and short-term investments, together with
expected cash inflows from collaborative funding arrangements, investment
income, and technology licensing efforts will be sufficient to meet operating
and capital requirements into 2006. However, we will be required to obtain
additional financing in order to fund the expected L-BLP25 Phase III
registration trial and operations in the second half of 2006 and beyond.
Risks and Uncertainties
As described in the Outlook, the immediate risks and uncertainties facing
Biomira may include: changing market and industry conditions; timely and
favourable regulatory clearance for an expected Phase III registration trial
for L-BLP25 in NSCLC; outcomes associated with the exploration of potential
early registration opportunities for L-BLP25 in regions other than the U.S.
and Europe based on the results of the Phase IIb trial in NSCLC; the ability
to attract a new collaborator to further develop Theratope; the ability to
patent and defend our intellectual property; recruitment and retention of key
personnel; and our success in generating sufficient new capital on acceptable
terms and on a timely basis. In the near and long term, the ability to secure
financing will depend on several factors, such as: regulatory support for a
Phase III pivotal L-BLP25 registration trial; the costs and timelines required
to obtain regulatory approval for our products; timely progression and
favourable outcomes of current and future clinical studies; the availability
of new financing through private and/or public offerings on acceptable terms;
and our ability to in-license complementary products and technology and secure
collaborative arrangements to build up our pipeline.
Other business risks and uncertainties have not changed significantly
from those disclosed in the MD&A in our 2004 annual report and in other
regulatory filings.
Critical Accounting Policies and Estimates
All of our accounting policies are in accordance with Canadian GAAP
including some which require management to make assumptions and estimates that
could significantly affect the results of operations and financial position.
The significant accounting policies that we believe are the most critical in
fully understanding and evaluating the reported financial results are
disclosed in the MD&A section of our 2004 Annual Report. As well, our
significant accounting policies are disclosed in Note 2, Significant
Accounting Policies, of the notes to our audited consolidated financial
statements for the fiscal year ended December 31, 2004.
Changes in Accounting Policies
Variable Interest Entities
Effective January 1, 2005, we adopted the recommendations of CICA
Handbook Accounting Guideline 15 (AcG-15), Consolidation of Variable Interest
Entities, effective for annual or interim periods beginning on or after
November 1, 2004. Variable interest entities (VIEs) refer to those entities
that are subject to control on a basis other than ownership of voting
interests. AcG-15 provides guidance for identifying VIEs and criteria for
determining which entity, if any, should consolidate them.
We have determined that adoption of AcG-15 does not have an effect on our
financial position, results of operations or cash flows in the current period
or the prior period presented.
Financial Instruments - Disclosure and Presentation
Effective January 1, 2005, we adopted the amended recommendations of CICA
Handbook Section 3860, Financial Instruments - Disclosure and Presentation,
effective for fiscal years beginning on or after November 1, 2004. Section
3860 requires that certain obligations that may be settled at the issuer's
option in cash or the equivalent value by a variable number of the issuer's
own equity instruments be presented as a liability.
The adoption of the amendments to Section 3860 has resulted in a
restatement of the financial statements for all interim and annual periods
ended after September 26, 2001 and up to and including the interim period
ended June 30, 2003 and the annual period ended December 31, 2003, to present
the September 26, 2001 convertible debentures, which were fully repaid in May
2003, as a liability instead of an equity instrument on the consolidated
balance sheets. The related interest, foreign exchange gain (loss), carrying
charges and accretion charges have been reclassified to the Consolidated
Statements of Operations instead of being presented as an adjustment on the
Consolidated Statements of Deficit.
Updated Share Information
As at April 15, 2005, the number of issued and outstanding common shares
of the Company was 78,361,885. In addition, there were 3,631,800 warrants and
3,626,455 stock options outstanding that are potentially convertible into an
equal number of common shares. Had the warrants and options been fully
exercised, the aggregate number of common shares outstanding as at April 15,
2005 would be 85,620,140.
For details relating to the warrants and stock options, please refer to
Notes 10 and 11, respectively, of the notes to the audited consolidated
financial statements for the fiscal year ended December 31, 2004 and Note 3 of
the unaudited interim consolidated financial statements for the period ended
March 31, 2005.
Forward-Looking Statements
This report may contain forward-looking statements. Various factors could
cause actual results to differ materially from those projected in forward-
looking statements, including those predicting the timing or availability of
clinical trial analyses; efficacy, safety and clinical benefit of products;
ability to secure, and timing of, regulatory clearances; timing of product
launches in different markets; ability to retain or secure collaborative
partners; adequacy of financing and reserves on hand; retention and
performance of contractual third parties, including key personnel; the
achievement of contract milestones; currency exchange rate fluctuations;
changes in general accounting policies; and general economic factors. Although
we believe that the forward-looking statements contained herein are
reasonable, we can give no assurance that our expectations are correct. All
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. For a detailed description of our risks and
uncertainties, you are encouraged to review the official corporate documents
filed with the securities regulators in the United States and Canada.
Additional Information
Additional information relating to Biomira, including a copy of our
Annual Information Form and Proxy Circular, can be found on SEDAR at
www.sedar.com.
Biomira Inc.
Consolidated Balance Sheets
(expressed in thousands of Canadian dollars, except share amounts)
(unaudited)
March 31 December 31
2005 2004(x)
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ASSETS
CURRENT
Cash and cash equivalents $ 16,012 $ 19,887
Short-term investments 18,123 18,751
Accounts receivable 612 736
Prepaid expenses 315 320
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35,062 39,694
CAPITAL ASSETS, net 365 383
INTANGIBLE ASSET, net 454 480
LONG-TERM INVESTMENT 264 264
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$ 36,145 $ 40,821
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LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 1,649 $ 2,031
Current portion of deferred revenue 438 556
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2,087 2,587
DEFERRED REVENUE 1,191 1,241
CLASS A PREFERENCE SHARES 30 30
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3,308 3,858
SHAREHOLDERS' EQUITY
Share capital (Notes 3 and 4) 374,078 374,007
Issued and outstanding -
78,360,353 and 78,339,978
Warrants (Note 3) 7,442 7,442
Contributed surplus (Note 4) 14,822 14,661
Deficit (363,505) (359,147)
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32,837 36,963
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$ 36,145 $ 40,821
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(See accompanying notes to the consolidated financial statements)
(CAD $1.00 (equal sign) USD $0.83)
(x) Figures excerpted from the 2004 audited consolidated financial
statements.
Biomira Inc.
Consolidated Statements of Operations
(expressed in thousands of Canadian dollars,
except share and per share amounts)
(unaudited)
Three Months Ended March 31
2005 2004
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REVENUE
Contract research and development $ 591 $ 520
Licensing revenue from collaborative
agreements 52 265
Licensing, royalties, and other revenue 161 158
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804 943
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EXPENSES
Research and development 3,507 3,791
General and administrative 1,723 1,907
Marketing and business development 268 325
Amortization 84 113
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5,582 6,136
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OPERATING LOSS 4,778 5,193
Investment and other income 420 360
Interest expense - (2)
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LOSS BEFORE INCOME TAXES 4,358 4,835
Income tax provision - 17
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NET LOSS $ 4,358 $ 4,852
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BASIC AND DILUTED LOSS PER SHARE $ 0.06 $ 0.07
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WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 78,352,338 72,555,054
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Consolidated Statements of Deficit
(expressed in thousands of Canadian dollars)
(unaudited)
Three Months Ended March 31
2005 2004
-------------------------------------------------------------------------
DEFICIT, BEGINNING OF PERIOD $ 359,147 $ 346,922
Net loss for period 4,358 4,852
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DEFICIT, END OF PERIOD $ 363,505 $ 351,774
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Biomira Inc.
Consolidated Statements of Cash Flow
(expressed in thousands of Canadian dollars)
(unaudited)
Three Months Ended March 31
2005 2004
-------------------------------------------------------------------------
OPERATING
Net loss $ (4,358) $ (4,852)
Amortization 84 113
Stock compensation expense (Note 4) 190 289
Decrease in deferred revenue (168) (265)
Unrealized foreign exchange gain on cash
and cash equivalents (54) (24)
Net change in non-cash working capital
balances from operations
Accounts receivable 124 (308)
Prepaid expenses 5 (20)
Accounts payable and accrued liabilities (282) (1,378)
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(4,459) (6,445)
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INVESTING
Purchase of short-term investments (14,978) (17,133)
Redemption of short-term investments 15,606 13,938
Purchase of capital assets (40) -
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588 (3,195)
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FINANCING
Payment of accrued share issuance costs (100) -
Proceeds from exercise of stock options 42 29
Repayment of capital lease obligation - (39)
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(58) (10)
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NET CASH OUTFLOW (3,929) (9,650)
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON
CASH AND CASH EQUIVALENTS 54 24
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DECREASE IN CASH AND CASH EQUIVALENTS (3,875) (9,626)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 19,887 24,062
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 16,012 $ 14,436
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SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION
Amount of interest paid in the period $ - $ 2
Amount of income taxes paid in the period $ - $ -
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BIOMIRA INC.
Notes to the Consolidated Financial Statements
(expressed in thousands of Canadian dollars,
except share and per share amounts)
(unaudited)
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1. BASIS OF PRESENTATION
The accompanying unaudited consolidated interim financial statements
have been prepared by the Company in accordance with Canadian
generally accepted accounting principles (Canadian GAAP) for interim
financial statements. The accounting principles and methods of
computation adopted in these consolidated financial statements are
the same as those of the audited consolidated financial statements
for the year ended December 31, 2004, except as disclosed in Note 2
below.
Omitted from these statements are certain information and note
disclosures normally included in the annual consolidated financial
statements prepared in accordance with Canadian GAAP. The
consolidated financial statements and notes presented should be read
in conjunction with the audited consolidated financial statements for
the year ended December 31, 2004 filed with the appropriate
securities commissions.
Comparative figures for prior periods have been restated to conform
to the current period's presentation.
2. ACCOUNTING POLICY CHANGES
Variable interest entities
Effective January 1, 2005, the Company adopted the recommendations of
CICA Handbook Accounting Guideline 15 (AcG-15), Consolidation of
Variable Interest Entities, effective for annual and interim periods
beginning on or after November 1, 2004. Variable interest entities
(VIEs) refer to those entities that are subject to control on a basis
other than ownership of voting interests. AcG-15 provides guidance
for identifying VIEs and criteria for determining which entity, if
any, should consolidate them.
The Company has determined that adoption of AcG-15 does not have an
effect on its financial position, results of operations or cash flows
in the current period or the prior period presented.
Financial instruments - disclosure and presentation
Effective January 1, 2005, the Company adopted the amended
recommendations of CICA Handbook Section 3860, Financial Instruments
- Disclosure and Presentation, effective for fiscal years beginning
on or after November 1, 2004. Section 3860 requires that certain
obligations that may be settled at the issuer's option in cash or the
equivalent value by a variable number of the issuer's own equity
instruments be presented as a liability.
The Company has determined that there is no impact on the financial
statements resulting from the adoption of the amendments to
Section 3860 either in the current period or the prior period
presented. However, the adoption of the amendments to Section 3860
has resulted in a restatement of the financial statements for all
interim and annual periods ended after September 26, 2001 and up to
and including the interim period ended June 30, 2003 and the annual
period ended December 31, 2003, to present the September 26, 2001
convertible debentures, which were fully repaid in May 2003, as a
liability instead of an equity instrument on the consolidated balance
sheets. The related interest, foreign exchange gain (loss), carrying
charges and accretion charges have been reclassified to the
Consolidated Statements of Operations instead of being presented as
an adjustment on the Consolidated Statements of Deficit.
3. SHARE CAPITAL
March 31 December 31
2005 2004
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Common shares
Issued and outstanding,
beginning of period 78,339,978 72,545,232
Equity placements - 4,891,051
Exercise of warrants - 722,320
Exercise of stock options 20,375 181,375
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Issued and outstanding, end of period 78,360,353 78,339,978
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Issued and outstanding as at
April 15, 2005 78,361,885
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March 31 December 31
2005 2004
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Stock options
Outstanding, beginning of period 3,736,599 4,519,418
Granted 50,015 535,627
Exercised (20,375) (181,375)
Cancelled (137,377) (1,137,071)
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Outstanding, end of period 3,628,862 3,736,599
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Outstanding as at April 15, 2005 3,626,455
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Stock options are exercisable at a range of exercise prices from
$1.51 to $23.10 per share.
March 31 December 31
2005 2004
---------------------------------------------------------------------
Warrants
Issued and outstanding,
beginning of period 3,631,800 4,251,999
Issued - 1,077,121
Exercised - (722,320)
Expired - (975,000)
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Issued and outstanding, end of period 3,631,800 3,631,800
---------------------------------------------------------------------
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Outstanding as at April 15, 2005 3,631,800
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The warrants provide the holders with the right to purchase common
shares at a range of prices from U.S. $1.66 to U.S. $3.45 per share.
4. STOCK-BASED COMPENSATION
In the first quarter of 2005, stock compensation expense of $190
(2004 - $289) was recognized, representing the amortization
applicable to the current period of the estimated fair value of
options granted since January 1, 2002. An amount of $29 (2004 - $17)
arising from the exercise of options for the three months ended
March 31, 2005 was credited to share capital from contributed
surplus.
The Company uses the Black-Scholes option pricing model to value the
options at each grant date, under the following weighted average
assumptions:
Three Months Ended March 31
2005 2004
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Weighted average grant-date fair
value per share option $ 1.86 $ 1.89
Expected dividend rate 0.0% 0.0%
Expected volatility 113.13% 112.62%
Risk-free interest rate 3.83% 3.78%
Expected life of options in years 6.0 6.0
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The amounts estimated according to the Black-Scholes option pricing
model may not be indicative of the actual values realized upon the
exercise of these options by the holders.
5. Segmented Information
The Company is engaged worldwide primarily in the biotechnology
healthcare industry in a single business segment, research and
development of therapeutic products for the treatment of cancer.
Operations and long-lived assets by geographic region for the periods
indicated are as follows:
Three Months Ended March 31
2005 2004
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Revenue from operations in
Canada $ 190 $ 182
United States 1 -
Barbados 593 652
Europe 20 109
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$ 804 $ 943
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Three Months Ended March 31
2005 2004
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Amortization in
Canada $ 52 $ 105
United States 6 8
Barbados 26 -
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$ 84 $ 113
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March 31 December 31
2005 2004
---------------------------------------------------------------------
Long-lived assets, net, in
Canada $ 318 $ 330
United States 47 53
Barbados 454 480
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$ 819 $ 863
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Long-lived assets and amortization consist of capital assets and
intangible assets and the amortization of capital assets and
intangible assets recorded thereon.
The Company derives significant revenue from certain customers. The
number of customers that individually accounts for more than 10% of
revenue and total revenue from transactions with those customers are
as follows:
Number of Customers Revenue
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2005 1 $ 638
2004 1 $ 784
Corporate Information
Share Registrar and Transfer Agents
Computershare Trust Company of Canada
100 University Ave
9th Floor
Toronto, ON M5J 2Y1
1-800-564-6253 (toll free North America)
1-514-982-7555 (International)
Fax: 1-866-249-7555 (toll free North America)
Fax: 1-416-263-9524 (International)
Email: service(at)computershare.com
Internet: https://www.computershare.com
Stock Listings and Symbols
Toronto Stock Exchange: BRA
Nasdaq National Market: BIOM
Contact: Jane Tulloch
Director, Investor Relations and Compliance Officer
Telephone: (780) 490-2812
e-mail: ir(at)biomira.com
We invite you to visit our web site at www.biomira.com or call our
investor relations department toll free at 1-877-234-0444 Ext. 241.
This release may contain forward-looking statements. Various factors
could cause actual results to differ materially from those projected in such
statements, a number of which are set forth under the Management Discussion
and Analysis section above. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement and the section on
Forward-Looking Statements under the Management Discussion and Analysis
section.
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