Tm Bioscience reports year-end results
TORONTO, April 30 /CNW/ - VSE - TMC Tm Bioscience, a world leader in the understanding of the physical chemistry of DNA, announced today a net loss for the year ended December 31, 1998 of $6,146,725 ($0.11 per share), compared to a net loss of $2,446,138 ($0.06 per share) for the year ended December 31, 1997. This loss includes a one-time restructuring charge of $1,100,000 ($0.02 per share) relating to the Company's decision to close its laboratory located in Woburn, Massachusetts.
Operating expenses, excluding the restructuring charge, were $5,257,372 for the 1998 fiscal year, 112% higher than operating expenses of $2,438,708 for fiscal 1997. The increase in operating expenses reflects the expansion of Tm's Canadian operations throughout 1998. In the first quarter of 1998, Tm entered into a lease agreement for premises in Toronto, Ontario and began to
build its infrastructure and scientific research and development capabilities. During the year, sales, marketing, product development, research and administrative staff were hired and the construction of a molecular biology
laboratory was completed in the fourth quarter.
''During 1998, Tm focused its efforts on the development, protection and
commercialization of its four hybridization technologies that have the
potential of near-term revenue generation'', said Don MacAdam, Tm's President and CEO. ''I believe that the outlook for Tm Bioscience is promising, as the markets addressed by the company are expected to experience rapid short-term expansion and sustained long-term growth.''
In November of 1998, a decision was made to restructure the Company's scientific research and development operations and relocate those activities to its newly constructed laboratory in Toronto. Tm expects a significant reduction in operating costs and cash outflows in future periods as a result of this decision. For the year ended December 31, 1998, costs for Tm's U.S. operations were 58% of total expenses before one-time charges.
Expenses associated with the preparation and filing of patents increased by 166% to $306,285 for the twelve months ending December 31, 1998 compared with $114,936 for the 12 months ending December 31, 1997, reflecting the Company's strategy of taking aggressive measures towards protecting its intellectual property.
While cash flow decreased from a net inflow of $3,920,831 in 1997 to $379,446 in 1998, Tm's liquidity and net worth improved. Shareholder's equity increased from a deficiency of $623,025 at December 31, 1997 to a surplus of $4,114,146 at December 31, 1998. In June 1998, a special warrant financing raised net proceeds of $13,723,657 (net of commissions and expenses). As a condition of this financing, $5,238,500 was held in escrow subject to Tm meeting certain revenue criteria. The escrowed funds, plus accrued interest
earned, were returned to the holders of the special warrants in January, 1999.
The Company's cash and short term investments totaled $4,325,354 at December 31, 1998.
Subsequent to the year-end, Tm announced that it had achieved proof of concept in its agreement with Affymetrix. The proof of concept involved incorporation of Tm's normalization technology in Affymetrix' GeneChips(R) for p53-cancer and HIV.
The Company's Annual General Meeting will be held in Toronto, Ontario on Tuesday June 1, 1999 at 4:30 pm at the Toronto Board of Trade.
Tm Bioscience is an emerging Canadian biotechnology company developing and commercializing proprietary DNA based technologies for application in biochips, diagnostics and genomic analysis. The Company offers pharmaceutical and biotechnology companies the ability to develop novel nucleic acid-based products for medical and research applications. Additional information about Tm Bioscience can be found at www.tmbioscience.com.
Tm Bioscience trades on the Vancouver Stock Exchange under the symbol TMC and has approximately 69 million shares outstanding.
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For further information: Don MacAdam, President & CEO, (416) 593-4323,
(416) 593-1066 fax, dmacadam@tmbioscience.com; Jay Hussey, Investor and
Media Inquiries, (416) 815-0700 ext. 225, (416) 815-0080 fax,
jhussey@equicomgroup.com |
