Micrologix Biotech Inc -
Micrologix Biotech 1999 third quarter report
Micrologix Biotech Inc
MBI
Shares issued 23,058,599
1999-04-23 close $2.5
Monday Apr 26 1999
Mr. Dany Hadary reviews the company
On Dec. 1, 1998, the company announced the start of a phase I human clinical trial in the
United States of MBI 226, its lead antimicrobial peptide for the prevention of bloodstream
infections in patients undergoing central venous catheterization.
The phase I study is a randomized, double-blind, placebo-controlled trial in 18 healthy
volunteers to assess the safety, tolerability and antimicrobial effect of MBI 226. Micrologix
plans to announce the phase I results in late April and to start a phase II trial in the second
half of 1999.
Bloodstream infections resulting from intravenous catheters are a serious medical problem.
Approximately 3.5 million central venous catheters are placed in patients in U.S. hospitals
each year. The Centers for Disease Control and Prevention in Atlanta, Ga., estimate that
250,000 hospitalized patients contract bloodstream infections each year in the U.S. These
infections most commonly derive from the use of invasive devices such as intravenous
catheters. More than 90 per cent of the catheter related infections are caused by central
venous catheters and result in the death of up to 50,000 patients annually and an additional
two million patient-days in intensive care units at an estimated annual cost of $7-billion.
Plans to Start Clinical Trials for the Treatment of Acne
Micrologix's Bactolysins offer significant potential for the effective treatment of severe acne.
Results from our preclinical research program demonstrate that Bactolysins are non-toxic and
non-irritating in animal models. In addition, the superior activity of Bactolysins against
resistant strains of acne-causing bacteria suggests that our drug candidates may be more
effective in treating acne than currently available in antibiotics. Most importantly, unlike
conventional antibiotics, Bactolysins kill microorganisms such as bacteria by destroying
their cellular membranes, thus preventing bacteria from developing resistance to them. For
these reasons, Bactolysins are considered to be strong drug candidates for the treatment of
severe inflammatory acne.
Acne is the most common skin disease of adolescence and early adulthood. Nearly 20 per
cent of all visits to dermatologists are related to the evaluation and treatment of acne. While
not life-threatening, the characteristic papules, nodules and pustules occurring on the face,
neck and upper body of acne sufferers can persist for years and have serious adverse
psychosocial effects including depression and withdrawal from society. by conservative
estimates, acne affects 17 millon people in the U.S. alone.
The U.S. market for prescriptin anti-acne medications is approximately $1.2-billion annually.
Current therapy for severe acne includes topical antibiotics and the use of systemic
antibiotics approved for other indications. Yet, increasing resistance to these antibiotics is
severly limiting their use.
The company is proceeding with additional preclinical testing of several of its lead
Bactolysins and plans to start clinical trials in the first quarter of 2000.
Expanding Product Line - Further Indications Targetted for Development
In addition to central venous catheters related bloodstream infections and acne the company
plans to enter clinical trials for a third undisclosed indication in the first half of 2000. Further
drug candidates are being screened and developed for other clinical indications including
the treatment of ocular infections.
Financial Highlights
Financial results for the nine months ended Jan. 31, 1999, showed a net loss of $4,730,150 or
21 cents per share, compared with a net loss of $3,559,221 or 15 cents per share for the nine
months ended Jan. 31, 1998.
Total expenses were $5,230,783 for the period compared with $4,160,978 in 1998, an increase
of 26 per cent. This increase is due primarily to the commitment of resources to the
company's research and development programs including preclinical and clinical studies of
MBI 226 for the prevention of blood stream infections in catheterized patients. Research and
development expenses increased 49 per cent to $3,737,870 for the period, compared with
$2,512,826 in 1998. General and corporate expenses were $1,492,913 for the period compared
with $1,648,152 in 1998, a drecrease of 9 per cent. Revenues were $500,633, a decrease of 17
per cent compared with 1998, due principally to lower cash balances.
At Jan. 31, 1999, the company's cash and marketable securities were $12,223,950, a decrease
of $5,044,690 from April 30, 1998. This decrease is comprised of $4,325,056 used to finance
operating activities and $719,634 in capital expenditures.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND DEFICIT
Three months ended Jan. 31
1999 1998
Revenue
Interest and
sundry $ 149,302 198,584
Expenses
Research and
development 1,252,827 1,021,124
General and
corporate 507,386 552,325
---------- ---------
1,760,213 1,573,449
---------- ---------
Net loss 1,610,911 1,374,865
Deficit -
beginning of
period 17,553,357 11,237,219
Deficit - end
of period $19,164,268 12,612,084
=========== ==========
Net loss per
share 7 cents 6 cents
CONSOLIDATED STATEMENTS OF OPERATIONS
AND DEFICIT
Nine months ended Jan. 31
1999 1998
Revenue
Interest and
sundry $ 500,633 601,757
Expenses
Research and
development 3,737,870 2,512,826
General and
corporate 1,492,913 1,648,152
---------- ---------
5,230,783 4,160,978
---------- ---------
Net loss 4,730,150 3,559,221
Deficit -
beginning of
period 14,434,118 9,052,863
Deficit - end
of period $19,164,268 12,612,084
=========== ==========
Net loss per
share 21 cents 15 cents
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