BioTransplant Reports Second Quarter 2002 Results
CHARLESTOWN, Mass.--(BUSINESS WIRE)--Aug. 19, 2002--
BioTransplant Incorporated (Nasdaq: BTRN - News) today reported financial results for the second quarter and six-month period ended June 30, 2002.
For the quarter ended June 30, 2002, the Company reported a net loss of $24.08 million, or $1.08 per share, compared to a net loss of $25.56 million, or $1.76 per share, for the same period in 2001. Weighted average shares outstanding for the quarters ended June 30, 2002 and 2001 were approximately 22.21 million and 14.50 million, respectively.
The net loss for the second quarter of 2002 includes a loss from impairment of $17.96 million related to the goodwill and intangible assets acquired by BioTransplant in its acquisition of Eligix, Inc. in 2001. Management has concluded that these non-cash assets incurred a decrease in value because sales of the Eligix(TM) HDM Cell Separation Systems have been significantly below expectations and because the Company has recently undergone two reductions in force.
"This impairment charge represents an adjustment to the goodwill and intangible assets associated with the Eligix(TM) acquisition," commented Donald B. Hawthorne, President and Chief Executive Officer of BioTransplant. "We believe both cash expenses, as reduced on July 29, and these non-cash assets, as reduced by this charge, are now consistent with current product revenue expectations."
Revenues for the second quarter of 2002 totaled $0.39 million, compared to $0 in revenue reported the same quarter last year. The increase in revenues was due to two factors. First, the Company recognized $0.18 million in product revenue from sales of the Eligix(TM) HDM Cell Separation Systems, which were launched in Europe during the fourth quarter of 2001 by the Company's distribution partner, Gambro BCT. Second, $0.22 million in license and milestone revenue was recognized in the second quarter 2002 as the $6.0 million of upfront fees and milestone payments received under the Gambro exclusive distribution agreement are being recognized as revenue ratably over the life of the agreement.
Research and development expenses for the three months ended June 30, 2002 were $4.36 million, compared to $2.91 million for the comparable period of 2001. Sales, general and administrative expenses for the three months ended June 30, 2002 were $1.06 million, compared to $0.88 million for the comparable period of 2001.
The Company had cash, cash equivalents and short-term investments of $13.24 million as of June 30, 2002, as compared to $9.79 million as of March 31, 2002.
Financial Guidance
The Company expects that total revenues for the fiscal year ending December 31, 2002 will be approximately $1.50-1.60 million, of which Eligix(TM) product revenues are expected to be between $0.70-0.80 million. Eligix(TM) product revenues of approximately $0.30 million are expected in the second half of 2002.
The Company estimates that existing cash resources will last into the third quarter of 2003. The receipt of potential milestone payments could make cash resources last until fourth quarter 2003; however, there can be no assurance as to whether or when the Company will receive these potential milestone payments.
Recent Highlights
Appointment of New Chief Executive Officer. Donald B. Hawthorne was appointed by the Board of Directors to the position of President and Chief Executive Officer of the Company on July 19. Mr. Hawthorne brings 19 years of leadership experience in the healthcare industry to the Company. He succeeds Elliot Lebowitz, the Company's founding CEO, who will serve as Chairman of the Board until September 11 and remain as a Board member thereafter.
New Strategic Focus and Restructuring Plan. The Company announced a restructuring plan on July 29 intended to streamline the Company's operations around a new strategic focus. The plan includes the following initiatives:
Accelerating Eligix(TM) Product Sales: BioTransplant sales people, technical support, and clinical support personnel will spend a substantial amount of time working in Europe to enhance Gambro's sales effort.
Revamped AlloMune System Development Strategy: The Company revised its clinical development strategy for the AlloMune System and will now employ kits consisting of BioTransplant's proprietary antibody MEDI-507, also known as siplizumab, in combination with products that have already been approved in the United States.
Reduced Cash Burn Rate: The Company implemented a reduction in headcount of approximately 23%, which is expected to lower the cash burn rate by approximately 25%.
The Company also announced that the restructuring would not affect its agreement with MedImmune or MedImmune's development efforts for MEDI-507.
Common Stock Offering Yielding $9.7 Million in Net Proceeds to Company. In June, BioTransplant completed an offering of 4 million shares of its common stock at a price of $2.50 per share.
Approval Granted to Market the Eligix(TM) CD8-SC Cell Separation System in Europe. BioTransplant announced on July 26 that it had received approval to market its third HDM Cell Separation System product in the European Union. The Eligix(TM) CD8-SC Cell Separation System is intended for ex-vivo use for patients receiving allogeneic bone marrow and peripheral stem cell transplantation for hematological disorders.
Conference Call
BioTransplant management will host a conference call at 8:30 AM Eastern Time on Tuesday, August 20, 2002 to discuss these results. Senior management will host the call.
The conference call may be accessed by dialing (800) 388-8975 for domestic callers and (973) 694-2225 for international callers.
A replay of the conference call will be available from 10:00 AM Eastern Time on August 20, 2002 through August 23, 2002, and may be accessed by dialing (800) 428-6051 for domestic callers and (973) 709-2089 for international callers. The passcode is 256865.
About BioTransplant
BioTransplant Incorporated, headquartered in Charlestown, Massachusetts, is developing a portfolio of products for application in a range of medical conditions, including treatment of cancer and autoimmune diseases, organ and tissue transplantation, for which current therapies are inadequate. Siplizumab (MEDI-507), a lead product the Company exclusively licensed to MedImmune, is in Phase II clinical trials for the treatment of psoriasis. In addition, the Company is developing the AlloMune System, which is designed to treat a variety of hematologic malignancies, and its distribution partner Gambro BCT markets the Eligix(TM) family of cell separation products in Europe for use in bone marrow, stem cell and donor leukocyte transplants. |
