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BUSINESS WIRE - November 15, 2002 07:01
CHARLESTOWN, Mass., Nov 15, 2002 (BUSINESS WIRE) -- BioTransplant Incorporated (Nasdaq: BTRN) today reported financial results for the third quarter ended September 30, 2002.
The Company also announced a restructuring plan intended to preserve its rights to MEDI-507 while reducing its cash burn rate. BioTransplant intends to evaluate possible partnering agreements, divestitures or closures of all programs and assets other than MEDI-507. A primary focus of this new initiative will be to secure a partner for the development of BioTransplant's proprietary AlloMune(R) System primarily for the treatment of hematological malignancies and solid organ transplants.
In conjunction with the restructuring, BioTransplant has given all employees a tentative notice of termination at a future date. If the partnering efforts are successful by that date, the Company will reevaluate this proposed reduction in force.
Finally, the Company expects to implement additional changes in the future as part of this restructuring plan.
"We were disappointed to learn that the development timeline for MEDI-507 had been extended, but based on the encouraging clinical data recently announced by our partner, MedImmune, Inc, we continue to believe that MEDI-507 represents a valuable asset to BioTransplant and its shareholders. We expect that our actions today will reduce our cash burn rate, and are a first toward enabling us to achieve our long-term goal of realizing the potential value of the MEDI-507 program." stated Donald B. Hawthorne, Chief Executive Officer of BioTransplant.
The Company also announced today that it has notified Gambro BCT, Inc. that it believes that Gambro is in material breach of the distribution agreement between the parties relating to the distribution of the Eligix(TM) HDM Cell Separation Systems. Under the terms of the agreement, unless Gambro cures its breach within the cure period specified in the agreement, the agreement will automatically terminate. Gambro has separately informed BioTransplant that it intends to seek dispute resolution under the terms of the agreement with respect to certain issues. Upon the expected termination of the Gambro distribution agreement, the Company plans to seek additional partners for the Eligix(TM) HDM Cell Separation Systems.
Third Quarter 2002 Financial Results
BioTransplant reported a net loss for the third quarter of 2002 of $5.17 million, or $0.20 per share. This compares to a net loss of $24.08 million, or $1.08 per share, in the second quarter of this year, which included 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. For the third quarter of 2001, the Company reported a net loss of $6.77 million, or $0.35 per share, which included $0.7 million of goodwill amortization related to the acquisition of Eligix, Inc. in 2001. Weighted average shares outstanding for the quarters ended September 30, 2002 and 2001 were approximately 25.34 million and 19.28 million, respectively.
Revenues for the third quarter of 2002 totaled $0.34 million, compared to $0.21 million in revenues reported for the same quarter last year. Revenues for the three months ended September 30, 2002 were due to product sales of $0.13 million and $0.21 million in Gambro milestone payments and upfront license fees, compared to product sales of $0.09 million and upfront license fees of $0.12 million in the third quarter of 2001. The increase in product sales and upfront license fees in the third quarter of 2002, as compared to the same period last year, is mainly due to the Company entering into an agreement with Gambro BCT in August of 2001. The Gambro milestone payments and upfront license fees have been recognized ratably over the expected remaining life of the Gambro BCT distribution agreement.
Research and development expenses for the three months ended September 30, 2002 were $2.99 million, compared to $2.99 million for the comparable period of 2001. Sales, general and administrative expenses for the three months ended September 30, 2002 were $1.73 million, compared to $1.28 million for the comparable period of 2001. The Company had cash, cash equivalents and short-term investments of $8.64 million as of September 30, 2002, as compared to $13.24 million as of June 30, 2002. |
