ONCOLYTICS BIOTECH ANNOUNCES 2002 THIRD QUARTER RESULTS
Oncolytics Biotech has released its financial results for the three- and nine-month periods ending Sept. 30, 2002.
Third quarter highlights:
continued the enrolment process for two human trials for Reolysin:
a T2 prostate cancer trial; and
a phase I/II trial for recurrent malignant glioma (brain cancer);
commenced and successfully completed a key systemic toxicology study in primates; and
secured a fifth United States patent covering Reolysin technology.
"During the quarter, we further advanced the development of Reolysin through our focused clinical program," said Dr. Brad Thompson, president and chief executive officer of Oncolytics. "In addition, we made progress in preparing for a systemic administration clinical trial for Reolysin, and secured a fifth United States patent, further protecting our intellectual property.
"Subsequent to the quarter-end, we also strengthened our board and senior management team with two key appointments. Dr. George Gill joined the company as senior vice-president, clinical and regulatory affairs, and Dr. William A. Cochrane was appointed to our board of directors," said Dr. Thompson. "These two appointments add significant depth to our management team and board of directors."
Financial review
For the three months ended Sept. 30, 2002, the company reported a net loss of $1,989,883 or nine cents per share, compared with a net loss of $2,445,661 or 13 cents per share for the same period in 2001. For the nine months ended Sept. 30, 2002, the company reported a net loss of $4,549,302 or 23 cents per share, compared with a net loss of $4,815,725 or 27 cents per share for the corresponding period a year ago.
As its products are still under development, the company reported no revenue for either period, other than revenue derived from interest earned on its cash and investment balances. For the three months ended Sept. 30, 2002, interest earned was $52,799 as compared with $160,587 for the same period a year ago. For the first nine months of 2002, interest earned was $164,416, compared with $564,529 for the first nine months of 2001. The decreases are primarily attributable to the relative decrease in cash balances in these periods.
Research and development expenses were $1,621,500 for the three months ended Sept. 30, 2002, and $3,196,218 for the nine months ended Sept. 30, 2002, as compared with $2,041,166 for the three months ended Sept. 30, 2001, and $3,627,111 for the nine months ended Sept. 30, 2001. The differences in 2002 over 2001 are primarily attributable to a $1.0-million milestone payment to founding shareholders recorded in the third quarter of 2001 without a similar cost in the third quarter of 2002, reductions arising from the conclusion of the phase I human clinical trial and reduced activity in process development. This was partially offset by the increased activity in the quarter resulting from the commencement of the prostate and glioma trials, and a key systemic toxicology study.
Operating expenses were $444,982 for the three months ended Sept. 30, 2002, and $1,585,955 for the nine months ended Sept. 30, 2002, as compared with $427,209 for the three months ended Sept. 30, 2001, and $1,446,801 for the nine months ended Sept. 30, 2001. The increase is due to increased costs directly attributable to increased legal and insurance costs, and other activities supporting the company's communications and filing requirements.
Amortization for the three months ended Sept. 30, 2002, increased to $146,200 from $119,536 for the same period in 2001. The increase was primarily due to increased assets, primarily patent costs, subject to amortization.
As at Sept. 30, 2002, the company's cash balance was $7,746,242 and working capital was $7,207,134, as compared with a cash balance of $14,970,756 and working capital of $12,769,203 as at Dec. 31, 2001.
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
