IMI INTERNATIONAL MEDICAL INNOVATIONS INC - Third Quarter
Results [140]
Canadian Market News from Market News Publishing, Friday, December 15, 2000 at
08:42
* Financial results meet management's expectations
* Quarter's achievements include acquiring rights to significant
new predictive technology for prostate cancer, obtaining TSE
listing, establishing European subsidiary in Switzerland
* Subsequent events include signing collaborative research
agreement with McMaster University and well-received presentation
to American Heart Association meeting on skin cholesterol study
involving Company's Cholesterol 1,2,3(TM) product
IMI International Medical Innovations Inc. announced its financial
results for the third fiscal quarter, ending October 31, 2000.
"Our financial performance for the quarter was consistent with our
expectations. More importantly, at this stage of IMI's growth, we
continued to make considerable progress driving towards commercial
launch of our first two products," said Dr. Brent Norton,
President and Chief Executive Officer.
"In September, we signed an exclusive worldwide license for a
patented new technology that detects a prostate cancer marker in a
urine specimen. Tests for prostate cancer currently on the market
rely on blood samples and are therefore invasive. IMI's new
technology could become a non-invasive test for one of the most
prominent cancers in North America," said Dr. Norton.
"A significant step for us was moving from the Canadian Dealing
Network to trading on The Toronto Stock Exchange in August. Since
beginning trading on The TSE we already are seeing increased
investor interest, and we believe that it has been well-received
by potential partners of IMI who view it as an indication of the
maturation of our company.
"Another important milestone took place on August 28, when we
incorporated a subsidiary in Switzerland that we will use to
support our pursuit of market opportunities in Europe and the
pursuit of additional technologies that will be complementary to
our corporate strategies and current portfolio," Dr. Norton said.
"Our vision is to improve disease detection by finding better
predictors and better test methods. We're doing that with our
skin cholesterol test called Cholesterol 1,2,3(TM), which we
expect to begin commercial marketing of in the first half of 2001,
and our test for colorectal cancer, called ColorectAlert(TM). The
new prostate detection technology that we acquired will provide us
with another market opportunity in an area in need of a better
screening test," said Dr. Norton.
Other notable third-quarter achievements included IMI adding to
its management team by hiring a communications specialist to focus
on investor and public relations, and, in October, being
recognized as one of "Canada's Top 10 Investment and Partnering
Prospects" by the Ottawa Life Sciences Council.
"Since the end of our third quarter we've reached more important
milestones," said Dr. Norton. "First, the presentation of our
pivotal skin cholesterol study at the American Heart Association
meeting in New Orleans, and the significant media attention that
followed, was a tremendous step to building demand for the
product. Consumers and the medical community have responded with
excitement, as have potential marketing partners. Second, in
November, IMI signed a collaborative research agreement with
McMaster University in genomics. We are sponsoring a research
program aimed at using genomics to detect cancer."
Financial Results
For the three months ended October 31, 2000, IMI reported a
net loss of $543,919 or $0.03 per share, compared with a loss of
$307,899 or $0.02 per share for the fiscal 1999 third quarter.
For the nine months ended October 31, 2000, the Company reported a
net loss of $1,271,540 or $0.07 per share, compared to $888,416 or
$0.07 per share for the nine months ended October 31, 1999. As a
result of listing on The TSE this year, the Company ceased to be
eligible to receive scientific research investment tax credits.
As the Company is still in the development stage of its initial
products, it did not record any revenues for these periods.
Research and development expenditures for the quarter increased
to $426,754 compared with $289,716 in 1999. Spending on clinical
trials during the quarter amounted to $114,508 compared with
$28,240 during the third quarter in 1999. The increase was due
primarily to the costs associated with the Cholesterol 1,2,3 trial
involving angiography testing. For the nine months ended October
31, 2000, clinical trial costs amounted to $203,668, an increase
of $80,888 over the prior year period. The addition of research
personnel contributed to an increase in salaries of $77,231 during
the quarter, compared to the corresponding period in 1999. Most
of the other development costs remained at fairly constant levels.
Total research and development expenditures for the nine months
ended October 31, 2000 and 1999 amounted to $870,509 and $710,826,
respectively.
General and administration expenses amounted to $263,858 for the
three months ended October 31, 2000 compared with $170,290 in the
prior-year period. Professional fees, including legal, tax, and
accounting expenses increased by approximately $20,518 compared
with the third quarter last year. These costs related to the
acquisition of the new test for prostate cancer and tax planning
activities related to the incorporation of the Swiss subsidiary.
Investor relations expenditures amounted to $55,009 during the
quarter, compared to $8,335 in the prior period. These additional
costs were associated with the listing on The TSE. For the nine
months ended October 31, the general and administrative expenses
amounted to $730,675 compared with $447,529 in 1999.
The Company ended the quarter with cash and cash equivalents
of $10,623,558. At the Company's current burn rate of less than $2
million a year, IMI has sufficient capital to support the
continuing development of its products, clinical trials,
regulatory reviews, and market introductions for the next several
years.
IMI is a world leader in the field of predictive medicine. IMI
is dedicated to developing rapid and non-invasive products for the
early detection of life-threatening diseases, particularly
cardiovascular disease and cancer. The Company's head office is
located in Toronto, and research facilities are at McMaster
University in Hamilton, Ontario. Common shares trade on The
Toronto Stock Exchange, under the symbol IMI.
This release contains forward-looking statements that reflect
the company's current expectation regarding future events. The
forward-looking statements involve risk and uncertainties. Actual
events could differ materially from those projected herein and
depend on a number of factors including, but not limited to,
changing market conditions, successful and timely completion of
clinical studies, uncertainties related to the regulatory approval
process, establishment of corporate alliances and other risks
detailed from time to time in the company's quarterly filings.
//st
Quarterly Conference Call:
Friday, December 15, 2000
11:00 a.m. EST
888-666-4830
IMI International Medical Innovations Inc.
Consolidated Balance Sheets
As at October 31, 2000 and January 31, 2000
October 31 January 31
2000 2000
(Unaudited) (Audited)
ASSETS
Current
Cash and cash equivalents $10,623,558 $741,767
Prepaid expenses and other
receivables 329,379 68,114
Investment tax credits receivable 53,125 332,000
Total current assets 11,006,062 1,141,881
Capital assets, net 94,134 68,906
Acquired technology, net 157,611 185,424
$11,257,807 $1,396,211
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued
liabilities $147,995 $261,333
Deposits on account 70,588 -
Total current liabilities 218,583 261,333
Shareholders' Equity
Capital Stock 16,735,093 5,559,207
Contributed surplus 71,054 71,054
Deficit (5,766,923) (4,495,383)
Total shareholders' equity 11,039,224 1,134,878
$11,257,807 $1,396,211
IMI International Medical Innovations Inc.
Consolidated Statements of Loss and Deficit
Three months Nine months
ended October 31 ended October 31
2000 1999 2000 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
EXPENSES
Research and
development $426,754 $289,716 $870,509 $710,826
General and
administration 263,858 170,290 730,675 447,529
Amortization 18,400 16,435 50,054 46,101
709,012 476,441 1,651,238 1,204,456
RECOVERIES AND
OTHER INCOME
Investment tax
credits - 152,877 - 287,877
Interest 165,093 15,665 379,698 28,163
165,093 168,542 379,698 316,040
Net loss for
the period 543,919 307,899 1,271,540 888,416
Deficit, beginning
of period 5,223,004 3,743,453 4,495,383 3,162,936
Deficit, end of
period $5,766,923 $4,051,352 $5,766,923 $4,051,352
Loss per common
share $0.03 $0.02 $0.07 $0.07
Weighted average
number of common
shares
outstanding 18,496,775 13,289,088 16,963,368 12,792,251
IMI International Medical Innovations Inc.
Consolidated Statements of Cash Flows
Three months Nine months
ended October 31 ended October 31
2000 1999 2000 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
OPERATING ACTIVITIES
Net loss for the
period $(543,919) $(307,899) $(1,271,540) $(888,416)
Add item not
involving cash
Amortization 18,400 16,435 50,054 46,101
(525,519) (291,464) (1,221,486) (842,315)
Net change in non-cash
working capital
balances related
to operations 78,037 (12,006) (25,140) (98,076)
Cash used in operating
activities (447,482) (303,470) (1,246,626) (940,391)
INVESTING ACTIVITIES
Purchase of capital
assets (10,171) (7,170) (47,469) (14,019)
Cash used in
investing activities (10,171) (7,170) (47,469) (14,019)
FINANCING ACTIVITIES
Issuance of capital
stock, net 30,886 261,501 11,175,886 1,311,501
Cash provided by
financing activities 30,886 261,501 11,175,886 1,311,501
Net increase in cash
during the period (426,767) (49,139) 9,881,791 357,091
Cash and short term
investments
- Beginning of
period 11,050,325 1,172,969 741,767 766,739
- End of period $10,623,558 $1,123,830 $10,623,558 $1,123,830
//et
TEL: (416) 222-3449 Andrew Weir, Director, Communications or
Ron Hosking, Vice President and CFO
E-mail: aweir@imin.ca
Internet: www.imin.ca
(c) Market News Publishing Inc. Tel:(604) 689-1101
All rights reserved. Fax:(604) 689-1106
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Companies or Securities discussed in this article:
Symbol
Name
TSE:IMI
IMI International Medical Innovations
Inc. J |
