StressGen Reports Fourth Quarter Results; Biochemical Division sales up 22% over last
year
VICTORIA, British Colombia., Feb. 19 /PRNewswire/ -- StressGen
Biotechnologies Corp. (TSE: SSB.) today released its financial results for the
quarter ended December 31, 1997. The Company reported fourth quarter revenues
of approximately $1.05 million compared to $836,000 reported in the fourth
quarter of 1996. This increase is the result of improved biochemical sales,
which more than doubled for the quarter compared with the same period last
year. Sales were positively impacted due, in part, to a stocking order from
Calbiochem-Novabiochem Corporation, the principal operating subsidiary of CN
Biosciences, Inc. Overall, the year's product sales increased 22% over 1996.
Total revenues were $3.48 million compared with $2.71 million for the prior
year. Cash on hand at December 31st was $21.6 million compared to $22 million
at December 1996.
The Company incurred a net loss of $2.07 million ($0.09 per share) for the
quarter compared with $1.23 million ($0.06 per share) for the corresponding
period last year. The net loss for 1997 was $5.33 million ($0.24 per share)
compared with $3 million ($0.16 per share) for the 12 months ended 1996.
The Company's R&D investment for the quarter increased to $2.03 million
from $1.10 million for the prior year. This is attributed to the preclinical
development costs related to HspE7, StressGen's therapeutic vaccine for
cervical cancer. For the 12 months ended December 31st, the Company's R&D
expenditures rose to $5.06 million from $2.6 in 1996.
Richard M. Glickman, StressGen's president and chief executive officer,
said he was pleased with the Company's performance in the fourth quarter. "We
have made considerable progress over this last quarter. In our Biochemical
Division, we are starting to see the impact of our expanded product line and
the value of our distribution agreement with Calbiochem," he said. "The
Therapeutic Division has also taken important steps and is moving two product
candidates into clinical development. HspE7, a fusion protein targeting
cervical cancer, is being developed with the assistance of two US contractors,
Covance and PPD Pharmaco. Our second product, a gene therapy approach for
ovarian cancer, is being developed through our joint venture with Genzyme
Molecular Oncology."
StressGen is a biopharmaceutical company developing innovative treatments
for cancer and vaccines to prevent infectious disease. The Company's core
technology capitalizes on the ability of stress proteins to stimulate the
immune system to recognize and fight disease. Through its Biochemical
Division, StressGen is also an internationally recognized supplier of stress
protein, protein trafficking and signal transduction research reagents.
Selected Financial Highlights (Unaudited)
(In thousands of Canadian Dollars except loss per share)
Statement of Loss Three months ended 12 months ended
Dec. 31 Dec. 31
1997 1996 1997 1996
Revenue
Product Sales $ 719 $ 355 $ 2,139 $ 1,749
Interest and Other Income 335 481 1,344 962
Total Revenue $ 1,054 $ 836 $ 3,483 $ 2,711
Less Expenses:
Cost of Sales 92 64 273 251
Research and development 2,034 1,105 5,062 2,602
Selling, general and
administrative 887 851 3,075 2,651
Depreciation &
amortization 92 49 369 196
Interest on long-term
debt 25 4 43 17
Net Loss $(2,076) $(1,237) $(5,339) $(3,006)
Weighted average of
common shares 22,646 22,391 22,624 18,288
Loss per common share $ 0.09 $ 0.06 $ 0.24 $ 0.16
Cash Position at
December 31 $21,661 $22,043
SOURCE StressGen Biotechnologies Corporation
CONTACT: Michelle Lurch-Shaw of StressGen, 250-744-2811 |
