Q1 Results issued Apr 17, 2000:
newswire.ca
QUEBEC CITY, Quebec, April 17 /CNW/ - AEterna Laboratories Inc.
(TSE: AEL) reported today its results for the three-month period ended
March 31, 2000.
FOR THE THREE MONTHS ENDED MARCH 31, 2000
- Sales increased 25% to $2 million from $1.6 million for the same
quarter last year. This is in line with expectations and is a result of
an increased market share of Atrium Biotechnologies Inc. (AEterna's
newly formed 77.8% owned subsidiary) through its existing distributors
and the introduction of new distributors in the U.S., Europe and Asia.
- R&D expenses reached $5.5 million in the first quarter compared to
$2.8 million for the same period a year ago. This increase is
principally due to the initiation of two Phase III trials in oncology,
as well as the preparation for the commencement of several other
clinical trials.
- R&D tax credits and grants amounted to $1.6 million in the first
quarter compared to $0.3 million for the same period last year. This
increase is attributable to contributions obtained from the Canadian
federal government's Technology Partnerships Canada (TPC) program.
- Net earnings for the first quarter were $5.0 million, or $0.17 per
share, compared to a net loss of $1.9 million, or $0.08 per share for
the same period a year ago. This increase was mainly due to a gain on
dilution of $7.4 million. This gain resulted from an investment of
$10 million by SGF Soquia Inc. and Fonds de solidarit‚ des travailleurs
du Qu‚bec (FTQ) in exchange for a 22.2% equity interest in Atrium.
- Cash position remained strong at the end of the quarter with cash and
short-term investments totaling $50 million. The increase in the
company's cash position since the 1999 year-end is mainly due to
additional gross proceeds of $2.25 million from the exercise of an
over-allotment option of the underwriters of AEterna's last public
offering that closed in November last year, as well as the $10 million
investment in Atrium.
``We intend to continue to focus on reducing time-to-market for our
antiangiogenic product Neovastat,' said Dr. Eric Dupont, Chairman, President
and Chief Executive Officer of AEterna. ``In addition to the two pivotal
Phase III clinical trials in oncology that we initiated in the first quarter,
we expect to start additional clinical trials this year. Our goal is to be
among the first three antiangiogenic products to be on the market as early as
2002.'
OVERVIEW OF FIRST QUARTER ACTIVITIES:
- AEterna issued additional shares for gross proceeds of $2.25 million
from the exercise of an over-allotment option of the underwriters from
the previous November 1999 public offering.
- The U.S. National Cancer Institute and AEterna received approval from
the appropriate health authorities in the U.S. and Canada (FDA and HPB)
to start a Phase III clinical trial of Neovastat in lung cancer
patients.
- AEterna formed a separate subsidiary, Atrium Biotechnologies Inc., for
its cosmetics and nutrition division. AEterna will maintain control of
this subsidiary, valued at $45 million, holding a 77.8% interest. SGF
Soquia Inc. and Fonds de solidarit‚ des travailleurs du Qu‚bec (FTQ)
have invested a total of $10 million in Atrium to help fund
acquisitions of new technologies or companies in the cosmetics and
nutrition ingredient fields.
- The company filed and received approval from FDA and HPB to initiate a
Phase III clinical trial of Neovastat in the treatment of progressive
renal cell (kidney) cancer to be performed in Canada, United States and
Europe.
- Dr. Eric Dupont, Chairman, President and CEO, presented at the
prestigious Biotechnology Industry Organization (BIO) CEO & Investor
Conference on a panel of discussion entitled: Antiangiogenesis:
Exciting Approach for the Next Millenium.
- The United States Patent and Trademark Office has issued three
additional key patents protecting Neovastat. The newly issued patents
protect AE-941/Neovastat in three ways: the product itself, its process
and medical uses in several therapeutic areas.
- New data further confirmed that Neovastat blocks the two main pathways
of angiogenesis: VEGF and MMPs. The new data demonstrated that not only
does Neovastat block selectively MMPs 2, 9 and 12 but also the VEGF
(vascular endothelial growth factor) signaling pathway, an important
part in the angiogenesis process (the formation of new blood vessels).
Results of the study were presented at the Experimental and Clinical
Regulation of Angiogenesis Keystone Symposium in Salt Lake City, Utah,
by Professor Richard B‚liveau, Head of Molecular Oncology Laboratory of
the Cancer Research Centre, Sainte-Justine Hospital in Montreal,
Quebec.
- Three leading U.S. clinicians have been named to the company's
Scientific Advisory Board (SAB), joining six other members who also
represent renowned U.S. and Canadian hospitals and research centers.
The new SAB members are:
- Dr. Mark Kris, MD, Chief, Thoracic Oncology Service of Memorial
Sloan-Kettering Cancer Center, New York City, New York;
- Dr. Dilip Patel, MD, Program Director, Hematology and Oncology,
North Shore Long Island Jewish Health System, New Hyde Park, New
York ; and
- Dr. Mark Lebwohl, MD, Editor of Psoriasis Forum and Medical
Editor of the bulletin of the National Psoriasis Foundation.
Member of the Medical Advisory Board of the National Psoriasis
Foundation, New York City, New York.
- Finally, AEterna presented recent corporate developments at the
Biotechnology Industry Organization 2000's International Investor and
Partnering Forum in Boston.
ABOUT AETERNA
AEterna Laboratories Inc. is a Canadian biopharmaceutical company focused
on the development of new therapies to treat a variety of conditions,
principally cancer. AEterna's lead product, Neovastat, is an angiogenesis
inhibitor being investigated in three major therapeutic areas: oncology,
dermatology and ophthalmology. The company also owns 77.8% of Atrium
Biotechnologies Inc., a strategic supplier in the development of active
ingredients used in cosmetics and nutrition products.
AEterna is listed on The Toronto Stock Exchange under the symbol AEL.
AEterna's news releases and additional information are available on its
Web site at www.aeterna.com.
<<
FINANCIAL SUMMARY
Three months ended
March 31,
_____________________
CONSOLIDATED RESULTS 2000 1999
_____________________
$ $
__________________________________________________________________
Sales 2,015,000 1,609,000
Operating expenses (753,000) (1,151,000)
___________________________
Earnings before the following 1,262,000 458,000
Research and development 5,475,000 2,828,000
Research tax credits and grants (1,638,000) (327,000)
Depreciation and amortization 319,000 234,000
___________________________
Loss before other items (2,894,000) (2,277,000)
Financial income 746,000 344,000
Gain on dilution of investment 7,378,000 -
Non-controlling interest (272,000) -
___________________________
Net earnings (loss) for the period 4,958,000 (1,933,000)
___________________________
Net earnings (loss) per share
Basic 0.17 (0.08)
___________________________
Fully diluted 0.16 (0.08)
___________________________
As at March 31,
_____________________
BALANCE SHEET 2000 1999
_____________________
$ $
__________________________________________________________________
Cash position 50,045,000 26,449,000
Working capital 53,629,000 27,923,000
Total assets 74,287,000 47,216,000
Long-term debt 3,905,000 421,000
Non-controlling interest 2,842,156 -
Shareholders' equity 63,320,000 42,222,000
Deficit (1,182,000) (3,949,000)
STOCK EXCHANGE INFORMATION AS AT MARCH 31, 2000
Symbol AEL (TSE)
____________________________________________________________
Issued shares and market float
Multiple voting right 4.9 million
Subordinate voting right 23.8 million
____
28.7 million
____
Market capitalization $443 million
Average daily transactions (3 months) 131,384 shares
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%SEDAR: 00003989EB
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For further information: Janet Craig, Director of Corporate
Communications and Investor Relations, Direct: (416) 229-4075, Bus:
(418) 652-8525, Fax: (418) 652-0881, E-mail: janetacraig@home.com
To request a free copy of this organization's annual report, please go to
www.newswire.ca and click on reports@cnw.
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