Aug. 18, 1999
SYNSORB Biotech Inc. Reports Second Quarter Results
CALGARY, ALBERTA--SYNSORB Biotech Inc. ("SYNSORB") (TSE:SYB,
NASDAQ: SYBB) today reported its results for the second quarter
and six month period ended June 30, 1999.
Total loss for the quarter ended June 30, 1999 was $4,654,000 or
$0.18 per share compared to $3,111,000 or $ 0.15 per share for the
same quarter the previous year. Total loss for the first half of
1999 was $8,455,000 or $.37 per share compared to $6,227,000 or
$.31 per share for the same period in 1998. As expected, the
Company reported no revenues for the first half of 1999 or for the
same period in 1998 as its products are still under development.
For the first half of 1999, development expenses were $5,576,000
compared with $4,283,000 for the first half of 1998. For the
second quarter, development expenses were $3,068,000 compared with
$2,065,000 during the same period in 1998. The continued progress
and expansion of the clinical trial programs for the Company's two
lead products as well as increased activities relating to the
development of the product pipeline accounted for the majority of
the increased development expenses.
During the quarter, the SYNSORB Pk(R) Phase III trial continued
enrollment at a pace that keeps SYNSORB on track for filing a New
Drug Application early in 2000. Discussions with several
potential partners for SYNSORB Pk(R) in various jurisdictions also
took place over the quarter, and a series of agreements are
expected to be concluded as soon as possible. Enrollment in the
SYNSORB Cd(R) Phase II trial steadily increased throughout the
quarter with the addition of four new clinical trial sites. An
interim analysis that is currently being conducted is expected to
provide timelines for conclusion of the SYNSORB Cd(R) Phase II
trial and movement into Phase III. The financing which took place
during the quarter has provided SYNSORB with sufficient resources
to accomplish these upcoming milestones for SYNSORB Pk(R) and
SYNSORB Cd(R).
"SYNSORB's second quarter of 1999 was extremely productive in both
the clinical trial and corporate development areas," said David
Cox, Ph.D., President and Chief Executive Officer of SYNSORB.
"Not only did we conclude a financing that provides us with the
resources to meet our upcoming milestones, but we also made
progress in the clinical development programs for SYNSORB Pk(R)
and SYNSORB Cd(R)."
Operating expenses remained relatively stable during the second
quarter of 1999 at $1,144,000 for 1999, compared with $1,126,000
for the same period in 1998. During the first six months of 1999,
operating expenses were lower at $2,020,000 as compared to
$2,148,000 over the same period the previous year, attributable to
the costs associated with listing on Nasdaq which occurred in
early 1998. The Company's total expenses for the first half of
1999 were $8,671,000 compared with $6,623,000 for the
corresponding period in 1998. In the second quarter of 1999 total
expenses increased to $4,731,000 as compared with $3,303,000
during the same period in 1998. This increase is largely due to
development costs as noted above as well as interest payments on
long term debt which was put in place in late 1998, and did not
impact the expenses in the first half of 1998.
On the corporate development front, SYNSORB concluded a public
offering that raised gross proceeds of $15,750,000, with an
additional $2,362,500 raised through the exercise of the
underwriters' over-allotment option. The acquisition of
Oncolytics Biotech Inc. was finalized during the second quarter,
and Oncolytics became a wholly owned subsidiary of SYNSORB.
As at June 30, 1999 the Company's cash and investment balance was
$16,966,000 as compared to $12,412,000 as at June 30, 1998.
SYNSORB is dedicated to accelerated drug development from the
acquisition of promising compounds emerging from basic research
through clinical development, and ultimately to providing channels
to market for new discoveries. Headquartered in Calgary, SYNSORB
currently has two products in late stage clinical development,
SYNSORB Pk(R) in Phase III clinical trials for the prevention of
HUS and the treatment of enteric hemorrhagic E. coli (EHEC)
infections (including O157:H7), and SYNSORB Cd(R) in Phase II
trials is designed to treat recurrent antibiotic-associated
diarrhea (CDAD). SYNSORB has access to additional compounds in
pre-clinical development, including the reovirus, a potential
cancer treatment being developed within its subsidiary company,
Oncolytics Biotech Inc. and novel antibiotics for various
bacterial and fungal infections. In the Company's research and
development program various indications including inflammation are
currently being targeted.
This release contains certain forward-looking statements which
involve known and unknown risks, delays, uncertainties and other
factors not under the Company's control which may cause actual
results, performance or achievements of the Company to be
materially different from the results, performance or expectations
implied by these forward-looking statements. These factors include
results of current or pending clinical trials, actions by the
FDA/HPB and those factors detailed in the Company's registration
statement on Form 20 F filed with the Securities and Exchange
Commission.
/T/
SYNSORB Biotech Inc.
Consolidated Interim Balance Sheets
As at June 30
(000's)
1999 1998
---------------------
ASSETS
Current assets
Cash and term deposits (note 1) $ 16,966 $ 12,412
Accounts receivable 263 360
Prepaid expenses 188 112
Advance to a director - 50
----------------------
17,417 12,934
Capital assets 21,917 10,364
----------------------
39,334 23,298
----------------------
----------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accruals 2,203 1,677
Current portion of long-term debt 2,140 -
----------------------
4,343 1,677
Non-current liabilities
Alberta Heritage Foundation 537 387
Long-term debt (less current portion) 9,957 -
----------------------
10,494 387
Shareholders' equity
Issued - 31,276,887 common shares
(1998 - 20,121,086) 58,387 39,409
Deficit (33,890) (18,175)
----------------------
24,497 21,234
----------------------
$ 39,334 $ 23,298
----------------------
----------------------
/T/
Note 1 - On July 30, 1999, Oncolytics Biotech Inc., a wholly-owned
subsidiary of SYNSORB Biotech Inc. issued 1,500,000 special
warrants for net proceeds of $855,000
/T/
SYNSORB Biotech Inc.
Consolidated Interim Statements of Loss and Deficit
For the six months ending June 30
(000's)
1999 1998
---------------------
REVENUE
Revenue $ - $ -
OTHER INCOME
Interest and other 216 396
EXPENSES
Research and development 5,576 4,283
Operating 2,020 2,148
Amortization 323 192
Interest on long-term debt 752 -
---------------------
8,671 6,623
---------------------
Net loss for the period 8,455 6,227
Deficit, beginning of period 25,435 11,948
---------------------
Deficit, end of period 33,890 18,175
----------------------
----------------------
Loss per common share $ 0.37 $ 0.31
----------------------
----------------------
SYNSORB Biotech Inc.
Consolidated Interim Statements of Cash Flows
For the six months ending June 30
(000's)
1999 1998
---------------------
OPERATING ACTIVITIES
Net loss for the period $ (8,455) $ (6,227)
Add non-cash item
Amortization 323 192
Change in non-cash working capital
balances relating to operating activities 475 (571)
---------------------
(7,657) (6,606)
---------------------
INVESTING ACTIVITIES
Purchase of capital assets (3,533) (6,516)
Investment in subsidiary (87) -
Change in non-cash working capital
balances relating to investing activities 201 1,229
---------------------
(3,419) (5,287)
---------------------
FINANCING ACTIVITIES
Common shares issued on exercise of
options and warrants 52 682
Common shares issued on private placement - 8,213
Net proceeds from share offering 16,484 -
Repayment of long-term debt (968) -
Proceeds from long-term debt 150 -
---------------------
15,718 8,895
---------------------
Increase (decrease) in cash and term
deposits during the period 4,642 (2,998)
Cash and term deposits, beginning
of period 12,324 15,410
----------------------
Cash and term deposits, end of period $ 16,966 $ 12,412
----------------------
----------------------
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
The Equicom Group
Jason Hogan
Investor Relations
(416) 815-0700 ex 222
(416) 815-0080 (FAX)
or
SYNSORB Biotech Inc.
Doug Ball, CA
VP Finance and CFO
(403) 283-5900
(403) 283-5907 (FAX)
or
SYNSORB Biotech Inc.
Mr. Doug Froom
For product licensing inquiries
(403) 283-5900
(403) 283-5907 (FAX)
synsorb.com |
