SYNSORB Biotech Inc. Reports First Quarter Results
CALGARY, ALBERTA--SYNSORB Biotech Inc. ("SYNSORB") (TSE:SYB,
NASDAQ: SYBB) today reported its results for the first quarter
ended March 31, 1999.
Total loss for the quarter ended March 31, 1999 was $3,801,000 or
$0.19 per share compared to $3,116,000 or $ 0.16 per share for
same quarter the previous year. As expected, the Company reported
no revenues for the first quarter of 1999 or for the same quarter
in 1998 as its products are still under development.
The continued progress and expansion of the clinical trial
programs for the Company's two lead products accounted for the
majority of the increased development expenses to $2,508,000 in
the first quarter of 1999 compared with $2,218,000 in the first
quarter of 1998. Operating expenses decreased to $876,000 during
the first quarter of 1999, compared with $1,022,000 for the same
period in 1998. This decrease can be attributable to costs
associated with the listing on the Nasdaq National Market in 1998
and reduced salaries and related costs in the first quarter of
1999 over 1998. The Company's total expenses for the first
quarter of 1999 increased to $3,940,000 as compared with
$3,320,000 during the same period in 1998, primarily due to
interest payments on long term debt which was put in place in late
1998.
As at March 31, 1999 the Company's cash and investment balance was
$6,168,000 as compared to $19,658,000 as at March 31, 1998.
"The first quarter of 1999 has been very productive for SYNSORB,
and we have continued enrollment in our Phase III trial for
SYNSORB Pk(R) and our Phase II trial for SYNSORB Cd(R)," said
David Cox, Ph.D., President and Chief Executive Officer of
SYNSORB. "We also announced a research agreement with Ocean
Pharmaceuticals Inc., commenced operations at our manufacturing
facility, finalized the acquisition of Oncolytics Biotech Inc.,
and filed a preliminary prospectus to complete a public offering.
The public offering, which closed on May 13, 1999, raised net
proceeds of $14.6 million for SYNSORB, and re-established our cash
balances at levels required to meet future milestones."
SYNSORB 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 Calgary, SYNSORB
currently has two products in late stage clinical development,
SYNSORB Pk(R) for the prevention of HUS and 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.
[QUARTERLY REPORT & CONTACT INFORMATION FOLLOW]
/T/
SYNSORB Biotech Inc.
Consolidated Interim Balance Sheets
As at March 31
(000's)
1999 1998
------------------------
ASSETS
Current assets
Cash and term deposits (note 1) $ 6,168 $ 19,658
Accounts receivable 243 168
Prepaid expenses 131 127
Advance to a director 50 50
------------------------
6,592 20,003
Capital assets 18,085 5,185
------------------------
24,677 25,188
------------------------
------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accruals 1,484 552
Current portion of long-term debt 2,070 -
------------------------
3,554 552
Non-current liabilities
Alberta Heritage Foundation 387 387
Long-term debt (less current portion) 10,534 -
------------------------
10,921 387
Shareholders' equity
Issued - 20,128,186 common shares
(note 1)
(1998 - 19,004,686) 39,438 39,312
Deficit (29,236) (15,063)
------------------------
10,202 24,249
------------------------
$ 24,677 $ 25,188
------------------------
------------------------
/T/
Note 1 On May 13, 1999 the Company increased cash balances
through the issuance of 9.0M common shares for net proceeds of
$14.6M
/T/
SYNSORB Biotech Inc.
Consolidated Interim Statements of Loss and Deficit
For the three months ending March 31
(000's)
1999 1998
-----------------------
REVENUE
Revenue $ - $ -
OTHER INCOME
Interest and other 139 204
EXPENSES
Research and development 2,508 2,218
Operating 876 1,022
Amortization 155 80
Interest on long-term debt 401 -
-----------------------
3,940 3,320
-----------------------
Net loss for the period 3,801 3,116
Deficit, beginning of period 25,435 11,947
-----------------------
Deficit, end of period 29,236 15,063
-----------------------
-----------------------
Loss per common share $ 0.19 $ 0.16
-----------------------
-----------------------
SYNSORB Biotech Inc.
Consolidated Interim Statements of Cash Flows
For the three months ending March 31
(000's)
1999 1998
-----------------------
OPERATING ACTIVITIES
Net loss for the period $ (3,801) $ (3,116)
Add non-cash item
Amortization 155 80
Change in non-cash working capital
balances relating to operating
activities (48) (152)
-----------------------
(3,694) (3,188)
-----------------------
INVESTING ACTIVITIES
Purchase of capital assets (2,051) (1,225)
Change in non-cash working capital
balances relating to investing
activities 51 (137)
-----------------------
(2,000) (1,362)
-----------------------
FINANCING ACTIVITIES
Common shares issued on exercise of
options and warrants - 585
Proceeds from shares issued on
private placement - 8,213
Repayment of long-term debt (461) -
-----------------------
(461) 8,798
-----------------------
Increase (decrease) in cash and
term deposits during the period (6,155) 4,248
Cash and term deposits, beginning
of period 12,323 15,410
-----------------------
Cash and term deposits, end of period $ 6,168 $19,658
-----------------------
-----------------------
/T/
|
