Attention Business/Financial Editors:
Micrologix Reports Year-End Results
Fiscal 2001 a Year of Progress
Trading Symbol: TSE: MBI
US OTC: MGIXF
Website: www.mbiotech.com
VANCOUVER, July 19 /CNW/ - Micrologix Biotech Inc. today reported
financial results for the fourth quarter and twelve months ended April 30,
2001 ("Fiscal 2001").
Fourth Quarter Highlights
- Continued to enroll patients in US FDA fast-tracked Phase III clinical
trial of MBI 226 and Phase II trial of MBI 594AN
- Granted two patents covering the compositions of 46 novel peptides and
their chemical derivatives designed for unique activity against
bacteria and fungi
- Announced executive appointments to strengthen the company's
management team
- Appointed Ken Galbraith, former Executive V.P. and Chief Financial
Officer of QLT Inc., to the Board of Directors
"Fiscal 2001 was a year of significant progress as we advanced our two
leading drug candidates through clinical trials," said William (Bud) Foran,
Chairman and CEO of Micrologix. "In the next two weeks, we will enroll the
final patients in our Phase II trial for MBI 594AN, a compound that treats
acne. We expect to complete this study in September and results should be
available before the end of November. Recent positive preclinical data,
showing the significant anti-inflammatory activity of our peptides, further
support MBI 594AN as an effective acne treatment. As for our Phase III trial
of MBI 226 (a drug designed to prevent catheter-related bloodstream
infections), patient enrollment should be completed by the end of 2001 and we
expect to file a New Drug Application for U.S. marketing approval in the
second half of 2002."
"In addition to the solid clinical progress made last year," added Mr.
Foran, "we strengthened the Company's operations in other areas. We remain
well funded and ended the year with $55.8 million in cash and short-term
investments. Through internal R&D and our collaboration with the Harbor-UCLA
Research and Education Institute, we identified more compounds that will help
us build a strong product pipeline for the future."
"While our search for a new CEO is taking longer than expected, we are
confident that our prudent approach will help us identify the right leader to
guide Micrologix and build on the Company's strengths. The year ahead will be
an exciting one as we continue to build solid relationships with potential
strategic partners and advance our clinical and research programs," Mr. Foran
concluded.
For the three months ended April 30, 2001, Micrologix reported a loss of
$4.3 million or $0.11 per share, compared to $3.0 million or $0.10 per share
for the same period in 2000. The loss for the twelve months ended April 30,
2001 was $11.7 million or $0.31 per share, compared to a loss of $8.7 million
or $0.34 per share for the same period in 2000.
<<
Selected Financial Highlights (Canadian dollars) (1)
April 30, April 30,
Balance Sheets 2001 2000
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ASSETS
Cash and cash equivalents $ 9,952,737 $ 45,014,873
Short-term investments(2) 45,839,031 11,594,959
Other current assets 405,944 167,351
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Total current assets $ 56,197,712 $ 56,777,183
Capital assets 1,598,784 1,346,719
Intangible assets 1,752,666 810,076
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Total assets $ 59,549,162 $ 58,933,978
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LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities $ 4,523,321 $ 2,050,438
Shareholders' equity 55,025,841 56,883,540
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Total liabilities and shareholders' equity $ 59,549,162 $ 58,933,978
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Three months ended Year ended
Statements of April 30 April 30
Loss and Deficit 2001 2000 2001 2000
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Revenue
Interest income $ 779,093 $ 468,430 $ 3,234,574 $ 1,023,193
Expenses
Research and
development 3,864,115 2,430,976 11,145,489 6,937,451
General and
corporate 1,172,165 1,013,364 3,797,791 2,745,615
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$ 5,036,280 $ 3,444,340 $ 14,943,280 $ 9,683,066
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Loss per
common share $ (4,257,187) $ (2,975,910) $(11,708,706) $ (8,659,873)
Deficit, beginning
of period (37,052,219) (26,624,790) (29,600,700) (20,940,827)
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Deficit, end
of period $(41,309,406) $(29,600,700) $(41,309,406) $(26,600,700)
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Loss per common
share(3) $ (0.11) $ (0.10) $ (0.31) $ (0.34)
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Weighted average
number of
common shares
outstanding(3) 38,165,620 29,960,817 37,246,047 25,756,628
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>>
(1) Condensed from the Company's audited financial statements.
(2) Short-term investments represent investments in highly liquid
interest bearing financial instruments with a maturity date at the
time of purchase greater than three months
(3) Loss per share is based on the weighted average number of common
shares outstanding during the period. Effective February 1, 2001 the
Company adopted the new CICA recommendations for the calculation of
earnings per share. The impact of this change in accounting policy is
to exclude the Company's escrow shares from the weighted average
number of common shares outstanding during the period. For the twelve
months ended April 30, 2001 this change resulted in a $0.01 (2000:
$0.02) increase in the loss per common share. Since the Company's
escrow shares, aftermarket support options and stock options are
anti-dilutive, fully diluted loss per common share has not been
presented.
Interest income for the twelve months increased to $3.2 million compared
with $1.0 million in 2000, due to higher rates of return and higher average
cash reserves. Total operating expenses for the twelve months increased 54
percent to $14.9 million compared with $9.7 million in 2000. The increase in
operating expenses and loss is due to the advancement of the Company's drug
candidates to later-stage clinical trials: MBI 226 for preventing central
venous catheter-related bloodstream infections in Phase III and MBI 594AN for
treating acne in Phase II. Research and development expenses for the twelve
months increased 61 percent to $11.1 million compared with $6.9 million in
2000. Clinical development program costs represented $7.3 million (2000: $3.5
million) or 65 percent (2000: 50 percent) of research and development
expenses.
There are currently 39,374,059 common shares (April 30, 2001: 39,359,059)
issued and outstanding.
The Company's Annual General Meeting will be held on September 6, 2001 at
2:00 pm. in the Cheakamus Room at the Waterfront Centre Hotel, Vancouver,
British Columbia. The record date is July 31, 2001.
About Micrologix
Micrologix develops novel drugs targeted at severe and life-threatening
diseases -- particularly those caused by antibiotic-resistant bacteria. The
Company's portfolio of antibiotic drug candidates is based on improved analogs
of naturally occurring cationic peptides found in the host defense systems of
most life forms. Micrologix currently has two drugs in clinical trials in the
United States: MBI 226 for preventing catheter-related bloodstream infections
in Phase III and MBI 594AN for treating acne in Phase II. The Company's common
shares are included in the TSE 300 Composite Index.
"Arthur J. Ayres"
----------------------------
Arthur J. Ayres, CA
Vice President Finance & CFO
The foregoing news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements frequently, but not
always use the words "expects", "anticipates", "suggests", "plans", "believes"
or "intends", or similar words and/or include statements concerning the
Company's strategies, goals and plans, or state that certain actions, events
or results "will" be taken, occur or be achieved. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievement of the company,
or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such statements. Such
factors include, among others, those described in the Company's annual report
on Form 20-F, including the following: uncertainties related to early stage of
development, technology and product development; dependence on future
corporate collaborations; dependence on proprietary technology and uncertainty
of patent protection; management of growth; future capital needs and
uncertainty of additional funding; intense competition; manufacturing and
market uncertainties; government regulation; product liability exposure and
insurability.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
-30-
For further information: Investor & Media Relations Contacts: Art Ayres,
Micrologix Biotech Inc., Telephone: (604) 221-9666, Toll-Free: 1-800-665-1968,
E-mail: aayres@mbiotech.com; Marla Gale, Fleishman-Hillard Canada Inc.,
Telephone: (416) 214-0701, Fax: (416) 214-0720, E-mail:
galem@fleishman.com |
