CALGARY, Nov. 2 /CNW/ - The Westaim Corporation announced today that for
the third quarter ended September 30, 2005, it recorded a net loss of
$5.0 million, or 5 cents per share, on revenue of $12.3 million. In the same
quarter last year, the company recorded a net loss of $2.5 million, or 3 cents
per share, on revenues of $10.5 million.
For the nine months ended September 30, 2005, the company posted revenues
of $23.0 million, including one milestone payment of $5.9 million, and a net
loss of $12.7 million, or 14 cents per share. For the same period last year,
Westaim had revenues of $25.9 million, including two milestone payments
totaling $13.0 million, and a net loss of $14.6 million, or 18 cents per
share.
At September 30, 2005, Westaim had $69.1 million in cash and short-term
investments.
During the quarter, NUCRYST Pharmaceuticals earned a US$5-million
milestone from Smith & Nephew plc related to the sales of Smith & Nephew's
Acticoat(TM) dressings. Payment for the milestone was received in October.
NUCRYST and Smith & Nephew have agreements under which NUCRYST receives
royalties and may also receive milestone payments based on sales of Smith &
Nephew's Acticoat(TM) dressings for serious wounds, including burns and
chronic wounds. Under the agreements, NUCRYST also manufactures Acticoat(TM)
dressings for Smith & Nephew. NUCRYST has now earned US$19 million in
milestone revenues of a potential US$56.5 million under the agreements.
"The second half of 2005 has been exciting for Westaim," said Barry Heck,
President & CEO of Westaim. "NUCRYST's wound care business has continued to
grow requiring further expansion of its production facilities and a second
Phase 2 study for the treatment of atopic dermatitis has begun. NUCRYST is
also continuing pre-clinical research on further applications of its
nanocrystalline silver technology. iFire remains on track and on budget and is
completing the final stages of its pilot manufacturing plant. We look forward
to iFire producing engineering sample panels by the end of the year."
NUCRYST Pharmaceuticals Update
NUCRYST has initiated its second Phase 2 human clinical trial of a
topical cream formulation of its nanocrystalline silver. The investigational
drug (NPI 32101) is being studied for the treatment of atopic dermatitis, a
form of eczema, and other skin conditions.
This double-blind, randomized, placebo-controlled study is expected to
involve 28 clinical sites across Canada and the United States. In total, 345
patients aged two to 17 years of age with mild to moderate eczema are planned
to be treated for up to 12 weeks. Safety data was also gathered from a
tolerance study involving children and a pharmacokinetics study that measured
the absorption of the cream formula by the skin. Both studies were completed
in the third quarter of 2005 and provided promising data concerning the safety
profile of NPI 32101.
Patients in the Phase 2 clinical study are being treated with one of
three cream formulations, either 1% or 2% concentrations of nanocrystalline
silver in a proprietary NUCRYST formulation or with a placebo, which is the
cream without any silver. The participating dermatologists will evaluate the
effectiveness of topical nanocrystalline silver in improving the signs and
symptoms of atopic dermatitis and its safety. As a double-blind study, neither
the physician nor patient will know which treatment they are receiving until
the end of the study. Results of the study are expected by the end of 2006.
NUCRYST has initiated a further expansion of its production facility in
Fort Saskatchewan, Canada in order to increase its capacity to manufacture
Acticoat(TM) dressings for Smith & Nephew.
iFire Technology Update
iFire is currently completing a $46.0-million pilot production facility
at its Toronto location. In order to accommodate the manufacturing-grade pilot
tools, iFire's facility was enlarged and now comprises 15,000 square feet of
clean room and environment controlled space. All major manufacturing equipment
is now installed and process development activities are underway. Once a
baseline process is established in the new toolset, iFire will start ramping
up the pilot line. It is anticipated that the line will be fully operational
by the end of 2005.
Upon completion of pilot commissioning and start up, iFire will focus on
producing 34-inch engineering samples of its iFire(TM) flat panel display
modules. This first phase of commercialization will demonstrate iFire's
low-cost production capability in a manufacturing environment and will produce
displays for iFire to share with OEMs (original equipment manufacturers) and
potential partners for evaluation. The pilot plant will provide information
and experience to allow iFire to work with partners to construct and operate
the first volume production facility. Initial planning work for this facility
is under way.
iFire expects to commercialize its technology in partnership with
industry leaders and plans to initially target the 30 to 45-inch screen size
television segment.
The Westaim Corporation's technology investments include: NUCRYST
Pharmaceuticals, which develops, manufactures and commercializes medical
products that fight infection and inflammation based on its nanocrystalline
silver technology; and iFire Technology, which has developed a revolutionary
low-cost flat panel display. Westaim's common shares are listed on NASDAQ
under the symbol WEDX and on The Toronto Stock Exchange under the trading
symbol WED.
This news release may contain forward-looking statements. These
statements are based on current expectations that are subject to risks and
uncertainties, and the company can give no assurance that these expectations
are correct. Various factors, including those described in the company's 2004
annual report, could cause actual results to differ materially from those
projected in such statements, including but not limited to statements
involving financial considerations, the achievement of milestones and
potential milestone revenues, continued growth of NUCRYST's wound care
business, the expansion of NUCRYST's production facilities, anticipated
further applications for NUCRYST's nanocrystalline technology and products,
planned clinical trials of NUCRYST's products and the timing of those trials,
the safety profile of NPI 32101, the anticipated demand for Acticoat(TM)
dressings, the completion of iFire's pilot manufacturing plant and the timing
of that completion, statements relating to budgets, production of iFire's
sample panels and the timing of that production, iFire's low-cost production
capability, potential iFire partnering activities and strategies, volume
production of iFire's panels, commercialization of iFire's technology, and the
targeting of particular industry segments by iFire. The company disclaims any
intention or obligation to update or review forward-looking statements whether
as a result of new information, future developments or otherwise. All
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.
<<
THE WESTAIM CORPORATION
Financial Highlights
(unaudited)
(thousands of dollars except per share data)
-------------------------------------------------------------------------
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
Consolidated Statements September September September September
of Operations 30, 2005 30, 2004 30, 2005 30, 2004
(Restated) (Restated)
-------------------------------------------------------------------------
Revenue $ 12,268 $ 10,501 $ 22,953 $ 25,865
Loss from continuing
operations (5,130) (2,468) (24,991) (18,331)
Net loss (5,042) (2,514) (12,728) (14,577)
Loss per common share -
basic & diluted
Continuing operations (0.06) (0.03) (0.27) (0.23)
Net loss (0.05) (0.03) (0.14) (0.18)
Weighted average number of
outstanding common shares
(thousands) 92,851 87,220 92,836 81,161
-------------------------------------------------------------------------
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
(Restated) (Restated)
-------------------------------------------------------------------------
Revenue
Nucryst Pharmaceuticals $ 12,268 $ 10,501 $ 22,953 $ 25,865
-------------------------------------------------------------------------
Continuing operations $ 12,268 $ 10,501 $ 22,953 $ 25,865
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Divisional Income (Loss)
Nucryst Pharmaceuticals $ 4,916 $ 5,415 $ 3,677 $ 6,380
iFire Technology (8,328) (6,961) (23,728) (20,598)
Other 23 (204) (1) (660)
-------------------------------------------------------------------------
Continuing operations $ (3,389) $ (1,750) $ (20,052) $ (14,878)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
September December
Consolidated Balance Sheets 30, 2005 31, 2004
-------------------------------------------------------------------------
Cash and short-term investments $ 69,142 $ 101,139
Current assets 97,325 111,994
Other assets 75,699 60,269
Current liabilities 24,344 12,963
Shareholders' equity 135,920 147,797
>>
%SEDAR: 00002793E
