EDMONTON, Aug. 2 /CNW/ - Biomira Inc. ("Biomira" or the "Company") (NASDAQ:BIOM) (TSX:BRA) today reported a consolidated net loss from operations of $6.3 million or $0.05 per basic and diluted share for the three months ended June 30, 2006, compared to $4.0 million or $0.04 per basic and diluted share for the same period in 2006. Revenue was $0.7 million for the 2007 second quarter, compared with $1.2 million for the year earlier quarter. Total operating expenses were $7.0 million for the quarter ended June 30, 2007, compared with $5.4 million for the same quarter in 2006. All results are in Canadian dollars.
The increase in net loss of $2.3 million primarily resulted from lower revenues of $0.5 million and increased operating expenses of $1.6 million. The lower revenues resulted from reduced contract research and development funding as a result of transitioning the responsibility for the clinical development and regulatory activities for Stimuvax(R) to Merck KGaA of Darmstadt, Germany ("Merck KGaA") during 2006. The increase in operating expenses primarily resulted from higher research and development expenses and increased amortization expense related to the Company's acquisition of ProlX Pharmaceuticals Corporation in October 2006.
Financial results for the six months ended June 30, 2006 reflect a consolidated net loss from operations of $11.6 million or $0.10 per basic and diluted share compared to $9.8 million or $0.11 per basic and diluted share for the same period in 2006.
As at June 30, 2007, cash and cash equivalents and short-term investments were $21.9 million compared to $33.0 million at the end of 2006, a decrease of $11.1 million. Major contributors to the net change included $9.8 million used in operations, $0.5 million used in payment of accrued business acquisition and share issuance costs, and $0.6 million used in the purchase of capital and intangible assets. Included in cash used in operations is an increase in inventory of $3.1 million related to Stimuvax manufacturing activities, which resumed in the first quarter of 2007 as a result of the commencement of the Merck KGaA-led phase 3 trial of Stimuvax in non-small cell lung cancer.
About Biomira
Biomira is a biotechnology company specializing in the development of innovative therapeutic products for the treatment of cancer. Biomira's goal is to develop and commercialize novel synthetic vaccines and targeted small molecules that have the potential to improve the lives and outcomes of cancer patients.
Forward-Looking Statements
In order to provide our investors with an understanding of our current results and future prospects, this release may contain statements that are forward looking. These forward-looking statements represent Biomira's intentions, plans, expectations and beliefs and are based on our experience and our assessment of historical and future trends and the application of key assumptions relating to future events and circumstances.
Forward-looking statements involve risks and uncertainties related to our business and the general economic environment, many beyond our control. These risks, uncertainties and other factors could cause our actual results to differ materially from those projected in forward-looking statements, including those predicting adequacy of financing and reserves on hand; currency exchange rate fluctuations; changes in general accounting policies; and general economic factors. Although we believe that any forward-looking statements that may be 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 Canada and the United States, including the risk factors described in our 2006 Annual Report.
Additional Information
Additional information relating to Biomira, including a copy of our Annual Information Form, Form 40-F and Proxy Circular, can be found on SEDAR at www.sedar.com and U.S. EDGAR at www.sec.gov.
Biomira Inc.
Consolidated Statements of Operations
(expressed in thousands of Canadian dollars, except share and per share
amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2007 2006 2007 2006
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REVENUE
Contract research
and development $ 533 $ 1,020 $ 649 $ 1,344
Licensing revenue
from collaborative
agreements 117 51 191 106
Licensing, royalties,
and other revenue 13 85 24 86
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663 1,156 864 1,536
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EXPENSES
Research and
development 3,699 2,972 6,688 6,928
General and
administrative 2,438 2,134 4,681 4,264
Marketing and business
development 21 149 581 367
Amortization 857 97 1,719 203
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7,015 5,352 13,669 11,762
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OPERATING LOSS (6,352) (4,196) (12,805) (10,226)
Investment and other
(loss) income (357) 187 1 424
Interest expense - - (1) (7)
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LOSS BEFORE INCOME TAXES (6,709) (4,009) (12,805) (9,809)
INCOME TAX RECOVERY:
Future 456 - 1,193 -
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NET LOSS $ (6,253) $ (4,009) $ (11,612) $ (9,809)
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BASIC AND DILUTED
LOSS PER SHARE $ (0.05) $ (0.04) $ (0.10) $ (0.11)
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WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING 116,915,338 89,388,932 116,915,338 87,636,606
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Biomira Inc.
Consolidated Balance Sheets Data
(expressed in thousands)
(unaudited)
June 30 December 31
2007 2006
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Cash and short-term investments $ 21,875 $ 33,037
Inventory $ 4,427 $ 1,287
Total assets $ 69,392 $ 79,099
Deferred revenue (current and non-current) $ 3,770 $ 1,036
Total long-term liabilities $ 14,606 $ 13,378
Shareholders equity $ 50,753 $ 61,417
Common shares outstanding 116,915 116,915
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(CAD $1.00 equals USD $0.94)