Oncolytics loses $1.28-million in Q2 2002
Oncolytics Biotech Inc ONC
Shares issued 19,191,395 Aug 14 close $2.04
Thu 15 Aug 2002 News Release
Mr. Doug Ball reports
ONCOLYTICS BIOTECH ANNOUNCES SECOND QUARTER 2002 RESULTS
Oncolytics Biotech has released its financial results for the second
quarter ended June 30, 2002.
Second quarter highlights:
approval from Health Canada and subsequent commencement of a phase I/II
clinical trial for recurrent glioblastoma (brain cancer);
commencement and continuing enrolment in a clinical trial for T2 prostate
cancer;
acquisition of minority interests in two Canadian biotechnology firms;
favourable safety and efficacy results in a third party research program
examining the use of Reolysin for the treatment of cancers in dogs; and
strengthening of the board of directors through the addition of George
Masters.
"During the quarter, we made substantial progress in our clinical program,
commencing enrolment in our T2 prostate cancer study and our phase I/II
trial for recurrent glioblastoma," said Dr. Brad Thompson, president and
chief executive officer. "We have also taken the first steps in expanding
our product pipeline through the acquisition of minority positions in two
promising Canadian biotechnology firms, Transition Therapeutics Inc. and
BCY LifeSciences Inc."
In addition, the company announced the appointment of George W. Masters to
its board of directors. Mr. Masters currently holds directorships in a
number of biotechnology companies, and has spent decades working in the
international health care and biotechnology industries, including 20 years
with Warner-Lambert. "We are pleased to welcome Mr. Masters to the board
and we look forward to benefiting from his extensive experience," added Dr.
Thompson.
Financial review
For the three months ended June 30, 2002, the company reported a net loss
of $1.3-million or seven cents per share, compared with a net loss of
$1.4-million or eight cents per share for the same period in 2001. For the
six months ended June 30, 2002, the company reported a net loss of
$2.6-million or 13 cents per share, compared with a net loss of
$2.4-million or 13 cents per share for the corresponding period a year ago.
As its products are still under development, the company reported no
revenue for either period, other than revenue derived from interest earned
on its cash and investment balances. For the three months ended June 30,
2002, interest earned was $54,437, as compared with $185,742 for the same
period a year ago. For the first six months of 2002, interest earned was
$111,617, compared with $403,941 for the first six months of 2001. The
decreases are primarily attributable to the relative decrease in cash
balances and interest rates on investments in these periods.
Research and development expenses were $753,200 for the three months ended
June 30, 2002, and $1,574,718 for the six months ended June 30, 2002, as
compared with $909,671 for the three months ended June 30, 2001 and
$1,585,945 for the six months ended June 30, 2001. The differences in 2002
over 2001 are primarily attributable to costs associated with reduced
activities in product and process development, and the conclusion of the
phase I trial, offset by increases resulting from the commencement of the
clinical trials for prostate cancer and gliomas now under way.
Operating expenses were $601,495 for the three months ended June 30, 2002,
and $1,140,973 for the six months ended June 30, 2002, as compared with
$545,796 for the three months ended June 30, 2001, and $1,019,591 for the
six months ended June 30, 2001. The increase was associated with increased
insurance and travel costs and other activities related to the company's
communications and filing requirements, as well as additional staff
supporting the operations.
Amortization for the six months ended June 30, 2002, increased to $272,640,
from $222,995 for the same period in 2001. The increase was primarily due
to increased assets, primarily patent costs, subject to amortization.
As at June 30, 2002, the company's cash balance was $9,963,600 and working
capital was $9,440,516, as compared with a cash balance of $14,970,756 and
working capital of $12,769,203 as at Dec. 31, 2001.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
STATEMENT OF LOSS AND DEFICIT
Three months ended June 30
2002 2001
Revenue
Interest
income $ 54,437 185,742
----------- -----------
54,437 185,742
----------- -----------
Expenses
Research and
development 753,200 909,671
Operating 601,495 545,796
Amortization 141,027 113,367
----------- -----------
1,495,722 1,568,834
----------- -----------
(Loss) before
income taxes 1,441,285 1,383,092
Future income
tax recovery (155,686) (27,263)
----------- -----------
Net loss for
the period 1,285,599 1,355,829
Deficit,
beginning
of the
period 11,632,895 5,201,849
----------- -----------
Deficit,
end of
the period $12,918,494 $ 6,557,678
=========== ===========
Basic and
diluted loss
per common
share $ 0.07 $ 0.08
=========== ===========
STATEMENT OF LOSS AND DEFICIT
Six months ended June 30
2002 2001
Revenue
Interest
income $ 111,617 $ 403,941
----------- -----------
111,617 403,941
----------- -----------
Expenses
Research and
development 1,574,718 1,585,945
Operating 1,140,973 1,019,591
Amortization 272,640 222,995
----------- -----------
2,988,331 2,828,531
----------- -----------
(Loss) before
income taxes 2,876,714 2,424,590
Future income
tax recovery (317,295) (54,526)
----------- -----------
Net loss for
the period 2,559,419 2,370,064
Deficit,
beginning
of the
period 10,359,075 4,187,614
----------- -----------
Deficit,
end of
the period $12,918,494 $ 6,557,678
=========== ===========
Basic and
diluted loss
per common
share $ 0.13 $ 0.13
=========== ===========
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