SYNSORB Biotech Inc. Reports 1998 Results
CALGARY, ALBERTA--SYNSORB (TSE:SYB, NASDAQ: SYBBF) today reported
its results for the year ended December 31, 1998.
Total loss for the year ended December 31, 1998 was $13,487,388 or
$0.67 per share compared to a loss of $8,641,408 or $0.51 per
share for the previous year. The increase in losses from 1997 was
primarily driven by increased clinical trial activities and
expenses associated with the commissioning of the new
manufacturing facility.
As expected, the Company reported no revenues for the year ended
December 31, 1998 as its products are still under development.
"During 1998 the Company continued moving its lead products
through the clinical trial process, and established a 'state of
the art' facility to produce these products on a commercial
scale," said David Cox, Ph.D., President and CEO of SYNSORB. "We
have expanded our Phase III clinical trials for SYNSORB Pk(R) by
adding sites in Argentina and the United States. Our Phase II
clinical trials for SYNSORB Cd(R) have also been enhanced by
extending our trials into the United States and expanding the
protocol for broader indications. During 1998 the Company
continued its development of a new manufacturing facility for
production of SYNSORB Pk(R) and SYNSORB Cd(R). With the
establishment of a broader direction for the Company, and some
exciting new technologies we believe we are well positioned for
the future."
Total expenses for the year ended December 31, 1998 were
$14,120,290 as compared to $9,105,799 for 1997. The increase is
attributable to increased costs associated with major expansions
in the clinical trial programs for the Company's two lead
products, SYNSORB Pk(R) and SYNSORB Cd(R). During 1998, 4 sites
were added in Argentina for SYNSORB Pk(R) and Phase II clinical
trials for SYNSORB Cd(R) commenced in the United States with 12
sites initiated to actively enroll patients by the end of 1998.
The Company had cash and term deposits of $12,323,076 at December
31, 1998, which compares to cash and term deposits of $15,409,918
at December 31, 1997. During the year the Company completed a
private placement of 1,000,000 common shares which generated net
proceeds of $8,213,000, and concluded three debt financings which
provided a total of $13,309,090 in proceeds for the Company. The
proceeds from these financings were used for the construction of
the manufacturing facility, the acquisition of equipment and the
general cash requirements of the Company.
SYNSORB Biotech Inc. is dedicated to accelerated drug development
from the acquisition of promising compounds emerging from basic
research through clinical development, and ultimately to providing
channels to market for new discoveries. Headquartered in Canada,
SYNSORB Biotech currently has two products in late stage clinical
trials, SYNSORB Pk(R) for the treatment of verotoxigenic E. coli
(VTEC) infections (including O157:H7), and SYNSORB Cd(R) designed
to treat recurrent antibiotic-associated diarrhea (CDAD). SYNSORB
has additional compounds in pre-clinical development, including
potential cancer treatments and novel antibiotics, with
inflammation and anti-virals targeted in the Company's research
and development program.
This release contains certain forward-looking statements which
involve known and unknown risks, delays, uncertainties and other
factors not under the Company's control which may cause actual
results, performance or achievements of the Company to be
materially different from the results, performance or expectations
implied by these forward-looking statements. These factors include
results of current or pending clinical trials, actions by the
FDA/HPB and those factors detailed in the Company's registration
statement on Form 20 F filed with the Securities and Exchange
Commission.
/T/
SYNSORB Biotech Inc.
(Incorporated under the Business Corporations Act of Alberta)
CONSOLIDATED BALANCE SHEETS
As at December 31
1998 1997
$ $
-------------------------
ASSETS
Current
Cash and term deposits 12,323,076 15,409,918
Accounts receivable 718,483 397,405
Prepaid expenses 160,543 172,219
Advance to a director 50,000 50,000
-------------------------
13,252,102 16,029,542
Capital assets 16,188,861 4,040,741
-------------------------
29,440,963 20,070,283
-------------------------
-------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 1,986,329 1,117,061
Current portion of long-term debt 2,001,820 -
-------------------------
3,988,149 1,117,061
-------------------------
Long-term debt 11,062,922 -
-------------------------
Alberta Heritage Foundation 386,700 386,700
-------------------------
Commitments
Shareholders' equity
Share capital 39,438,068 30,514,010
Deficit (25,434,876) (11,947,488)
-------------------------
14,003,192 18,566,522
-------------------------
29,440,963 20,070,283
-------------------------
SYNSORB Biotech Inc.
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
For the years ended December 31
1998 1997
$ $
-------------------------
Interest income 632,902 464,391
-------------------------
Expenses
Amortization 471,050 237,531
Research and development 8,895,783 5,655,356
Operating 4,508,092 3,212,912
Interest on long-term debt 245,365 -
-------------------------
14,120,290 9,105,799
-------------------------
Net loss for the year 13,487,388 8,641,408
Deficit, beginning of year 11,947,488 3,306,080
-------------------------
Deficit, end of year 25,434,876 11,947,488
-------------------------
-------------------------
Loss per common share 0.67 0.51
-------------------------
-------------------------
SYNSORB Biotech Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31
1998 1997
$ $
-------------------------
OPERATING ACTIVITIES
Net loss for the year (13,487,388) (8,641,408)
Add non-cash item
Amortization 471,050 237,531
Change in non-cash working capital
balances relating to
operating activities 77,204 (108,089)
-------------------------
(12,939,134) (8,511,966)
-------------------------
INVESTING ACTIVITIES
Purchase of capital assets (12,619,170) (3,276,052)
Change in non-cash working capital
balances relating to
investing activities 482,662 229,846
-------------------------
(12,136,508) (3,046,206)
-------------------------
FINANCING ACTIVITIES
Common shares issued on
exercise of options and warrants 711,058 5,881,238
Common shares issued on
private placement 8,213,000 -
Common shares issued on
public offering - 8,220,770
Proceeds from issuance of
long-term debt 13,309,090 -
Repayment of long-term debt (244,348) -
-------------------------
21,988,800 14,102,008
-------------------------
Increase (decrease) in cash and
term deposits during the year (3,086,842) 2,543,836
Cash and term deposits,
beginning of year 15,409,918 12,866,082
-------------------------
Cash and term deposits,
end of year 12,323,076 15,409,918
-------------------------
-------------------------
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
The Equicom Group
Jason Hogan
Investor Relations
(416) 815-0700 ex 222
(416) 815-0080 (FAX)
(800) 385-5451 United States
or
SYNSORB Biotech Inc.
Mr. Doug Ball
Vice President Finance & CFO
(403) 283-5900
(403) 283-5907 (FAX)
synsorb.com
or
SYNSORB Biotech Inc.
Mr. Doug Froom
For product licensing inquiries
(403) 283-5900
(403) 283-5907 (FAX)
|
