To: Bill Harmond who wrote (94804 ) 2/25/2000 9:31:00 AM From: mike machi Respond to of 164684
(SYB.) SYNSORB Biotech Inc. Reports 1999 Consolidated Results CALGARY, Alberta, Feb 25, 2000 (BUSINESS WIRE) -- SYNSORB(NASDAQ:SYBB)(TSE:SYB.) SYNSORB Biotech Inc. ("SYNSORB") (TSE:SYB, NASDAQ:SYBB) today reported its consolidated results for the year ended December 31, 1999. Total consolidated loss for the year ended December 31, 1999 was $15.1M or $0.55 per share compared to a consolidated loss of $13.5M or $0.67 per share for the previous year. The increase in consolidated losses from 1998 was primarily driven by increased Research and Development expenses associated with the manufacturing facility, product development activity, and subsidiary operations. The Company reported $0.2M consolidated revenues for the year ended December 31, 1999 from licensing payments associated with partnership agreements. Total consolidated expenses for the year ended December 31, 1999 were $17.3M as compared to $14.1M for 1998. The increase is attributable to further development expenses in subsidiary companies, increased manufacturing expenses as the Company gears up for commercial production and a full year of interest payments on the long term debt. Although SYNSORB incurred more expenses in the Business Development area in 1999, expenses in the General and Administrative area were reduced, resulting in operating expenses that were comparable to 1998. In 1999, SYNSORB reported gains of $1.2M on dilution of investment in Oncolytics Biotech Inc. The Company had consolidated cash and cash equivalents of $11.6M at December 31, 1999, which compares to consolidated cash and cash equivalents of $12.3M at December 31, 1998. During the year the Company completed a public offering of 10.4M common shares which generated net proceeds of $16.5M. Subsequent to the year end, SYNSORB sold 6.9M common shares to the public at $3.50 per share for gross proceeds of $24.2M. Proceeds from both offerings will be used to further the Company's product development and manufacturing programs, as well as for general corporate purposes. "Throughout 1999, SYNSORB continued its determined focus on the development of SYNSORB Cd(R) and SYNSORB Pk(R)," said David Cox, Ph.D., President and CEO of SYNSORB. "Clinical data that became available from the SYNSORB Cd(R) Phase II trial in September was so encouraging that we were able to complete that trial earlier than expected and commence planning for phase III trials to be launched early in 2000. A further benefit of our focus strategy has been the creation of very substantial shareholder value through the spin-out and subsequent market performance of the Oncolytics subsidiary".