ID Biomedical (NASDAQ:IDBE)
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ID Biomedical reports 2005 first quarter results
VANCOUVER, May 16 /PRNewswire-FirstCall/ -- ID Biomedical Corporation (TSX:
IDB; NASDAQ: IDBE) announced today financial results for the quarter ended
March 31, 2005. Amounts, unless specified, are expressed in Canadian dollars.
Commenting on the first quarter, Todd Patrick, President of ID Biomedical said,
"The Company continues to progress toward our goal of filing a Biologics
License Application (BLA) with the U.S. Food and Drug Administration (FDA)
later this year for our injectable influenza vaccine. In support of this goal,
the Company will be eligible for an accelerated approval, as well as a priority
review mechanism with the FDA. As expected, these activities will result in
additional expenses as we seek licensure of Fluviral for the U.S. market. The
resulting loss this quarter is consistent with this level of activity and
in-line with our expectations."
"The Company also strengthened the cash position as a result of the sale and
lease back transactions relative to our Laval and Northborough facilities. We
ended the quarter with more cash than we had at the beginning of the period.
The strong cash balance ideally positions the Company to advance not only our
injectable flu vaccine, but also the other vaccines in our pipeline," continued
Mr. Patrick.
The Company's first quarter financial report will be available on our web site
and at http://www.sedar.com/.
Highlights of the Company's progress during the first quarter and a general
company update will be discussed on a conference call/web cast to be held
Monday, May 16 at 5:00 pm Eastern. The presentation can be accessed by dialing
604-677-8677 or at the Company's website at http://www.idbiomedical.com/. A
recording of the call will be available until May 30th by dialing 416-640-1917
and entering the code 21123931 followed by the number sign.
CONDENSED FINANCIAL RESULTS
The Company recorded a net loss of $27.6 million ($0.64 per share) for the
three months ended March 31, 2005 compared to a net loss of $10.9 million
($0.26 per share) for the three months ended March 31, 2004. The results from
operations include the activities of the acquired vaccine business from Shire
beginning September 10, 2004.
For the three months ended March 31, 2005, the Company's revenue totaled $12.8
million compared to $1.5 million for the three months ended March 31, 2004.
Product sales revenue in the amount of $6.9 million was recorded for the three
months ended March 31, 2005 compared to $0 for the three months ended March 31,
2004. This revenue primarily relates to the sales of the Company's NeisVac-C
vaccine to the Canadian government. The Company had no product sales prior to
the acquisition of Shire.
Research and development contract revenue in the amount of $4.3 million was
recorded for the three months ended March 31, 2005 compared to $0.8 million for
the three months ended March 31, 2004. Research and development contract
revenue includes revenue recognized as a result of the Shire Funding Facility
to support the development of the non-flu vaccine candidates acquired from
Shire. Revenue recognized from the Shire Funding Facility totaled $4.25 million
for the three months ended March 31, 2005. The Company determined that these
amounts are appropriate to recognize as revenue since the amount and date of
repayment of these advances are not known and there is no requirement to repay
any advances if the early stage, non-flu vaccine candidates acquired from Shire
are not successful. Other research and development contract revenue totaling
$0.05 million for the three months ended March 31, 2005 and $0.8 million for
the same period in 2004 is a result of agreements executed during 2003 with
Dynport Vaccine Company for the development of an antigen for a injectable
subunit plague vaccine.
Previously deferred licensing revenue in the amount of $0.7 million was
recognized for the three months ended March 31, 2005, compared to $0.7 million
for the three months ended March 31, 2004. Based on the Company's current
licensing agreements, amortization of deferred licensing revenue is expected to
continue at the present amount through October 2006. The amortization of
deferred licensing revenue does not result in additional cash to the Company.
Other revenue, consisting primarily of the pandemic readiness fees under an
agreement with the Government of Canada and other fees to store and distribute
vaccines under an agreement with the Quebec Ministry of Health, totaled $0.9
million for the three months ended March 31, 2005 compared to $0 for the three
months ended March 31, 2004. Other revenue increased as a result of the Shire
acquisition.
Cost of product sales for the three months ended March 31, 2005 includes the
expenses related to the distribution of NeisVac-C, costs related to pandemic
readiness fees classified as other revenue, and other revenue related costs.
Cost of product sales was $6.2 million for the three months ended March 31,
2005 compared to $0 for the three months ended March 31, 2004. Prior to the
acquisition of Shire, the Company did not have any cost of products sales.
Research and development expenses increased $12.1 million or 119%, to $22.2
million for the three months ended March 31, 2005 compared to the three months
ended March 31, 2004. The increase in research and development expenses in
2005, compared to the same period in 2004, is a result of the clinical
development programs acquired from Shire, predominantly the costs being
incurred in support of the U.S. licensure of the Company's injectable influenza
vaccine, Fluviral. Also impacting research and development expenses is the
clinical cost associated with advancing our other lead development programs,
and the funding of our early stage development programs. Included in research
and development expenses is stock-based compensation expense totaling $1.1
million and $0.4 million for the three months ended March 31, 2005 and 2004
respectively.
Research and development tax credits and grants include amounts received or
receivable from Technology Partnerships Canada ("TPC"), National Institutes of
Health ("NIH") and provincial government investment tax credits. Research and
development tax credits and grants were $1.53 million for the three months
ended March 31, 2005 compared to $0.3 million for the three months ended March
31, 2004. There were $0.29 million in TPC grants recognized for the three
months ended March 31, 2005 compared to $0 million for the three months ended
March 31, 2004. NIH grants totaled $0.89 million for the three months ended
March 31, 2005. There were no NIH grants during the three months ended March
31, 2004. Provincial government investment tax credits totaled $0.35 million
for the three months ended March 31, 2005 as compared to $0.3 million for the
three months ended March 31, 2004.
Selling, general and administrative expenses increased $4.7 million, or 204% to
$7.0 million for the three months ended March 31, 2005 compared to the three
months ended March 31, 2004. This increase is primarily the result of the
selling and administrative employees acquired in the Shire acquisition. Also
contributing to the increase is cost related to our Sarbanes-Oxley reporting
compliance and stock-based compensation. Stock-based compensation expense
totaled $1.2 million and $0.5 million for the three months ended March 31, 2005
and 2004 respectively.
Depreciation and amortization expense relates to facilities and equipment and
medical technology and other assets. Depreciation and amortization expense
increased $2.8 million, or 258% to $3.9 million for the three months ended
March 31, 2005 compared to the three months ended March 31, 2004. These
increases are directly related to the value of the assets acquired in the Shire
acquisition.
Investment income decreased $0.1 million to $0.8 million for the three months
ended March 31, 2005 compared to the three months ended March 31, 2004.
The Company recorded a foreign exchange gain of $0.5 million for the three
months ended March 31, 2005 as compared to loss a $0.01 million for the three
months ended March 31, 2004. This foreign exchange gain is a result of the U.S.
denominated Shire Funding Facility related to flu advances and the financing
transaction used to repurchase the Shire subscription receipts.
The Company recorded interest expense and other finance charges of $3.9 million
for the three months ended March 31, 2005 compared to $0.01 million for the
three months ending March 31, 2004. The increase in interest expense and other
finance charges is a direct result of the flu advances, received under the
Shire Funding Facility and the interest expense and finance charges associated
with the financing transaction that closed on January 5, 2005.
Consolidated Balance Sheets
(Expressed in Canadian dollars)
March 31, 2005 and December 31, 2004
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March 31, December 31,
2005 2004
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(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 150,149,684 $ 105,068,973
Other current assets 39,239,599 44,611,681
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189,389,283 149,680,654
Long-term receivable 468,278 468,278
Facilities and equipment 145,127,980 186,110,643
Investment 413,644 413,644
Medical technology and other assets 32,427,517 33,358,944
Deferred charges 1,156,124 -
Goodwill 771,314 771,314
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$ 369,754,140 $ 370,803,477
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Liabilities and Shareholders' Equity
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Current liabilities $ 102,586,970 $ 95,978,227
Deferred revenue 10,920,657 11,101,339
Long-term debt 122,841,858 37,043,350
Obligation under capital lease 10,671 18,444
Shareholders' equity 133,393,984 226,662,117
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$ 369,754,140 $ 370,803,477
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Consolidated Statements of Operations
(Expressed in Canadian dollars)
For the three months ended March 31, 2005 and 2004
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2005 2004
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(Unaudited) (Unaudited -
Restated(x))
Revenue:
Product sales $ 6,875,539 $ -
Research and development contracts 4,316,368 843,167
Licensing 689,002 690,259
Other 881,366 -
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12,762,275 1,533,426
Expenses and other:
Cost of product sales 6,195,305 -
Research and development 22,248,075 10,139,014
Research and development tax credits
and grants (1,530,584) (278,547)
Selling, general and administrative 6,993,108 2,299,904
Depreciation and amortization 3,892,998 1,086,82
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37,798,902 13,247,195
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Loss from operations (25,036,627) (11,713,769)
Other income (expenses):
Investment income 844,646 905,760
Foreign exchange gain (loss) 505,681 (11,816)
Interest expense and other finance charges (3,875,563) (12,156)
Loss on disposal of medical technology and
other assets - (26,744)
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(2,525,236) 855,044
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Loss before income taxes (27,561,863) (10,858,725)
Income taxes - -
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Loss for the period $ (27,561,863) $ (10,858,725)
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Basic and diluted loss per common share $ (0.64) $ (0.26)
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Weighted average number of shares
outstanding 42,771,749 41,967,540
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Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
For the three months ended March 31, 2005 and 2004
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2005 2004
-------------------------------------------------------------------------
(Unaudited) (Unaudited
- Restated)
Cash provided by (used in) operations:
Loss for the period $ (27,561,863) $ (10,858,725)
Items not affecting cash 8,528,445 2,119,038
Net changes in non-cash working capital
balances 5,716,236 (2,600,602)
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Cash used in operating activities (13,317,182) (11,340,289)
Cash used in investment activities 38,021,092 1,123,152
Cash provided by financing activities 20,376,801 143,326
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Increase (decrease) in cash and cash
equivalents 45,080,711 (10,073,811)
Cash and cash equivalents, beginning of
period 105,068,973 149,087,649
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Cash and cash equivalents, end of period $ 150,149,684 $ 139,013,838
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About ID Biomedical
ID Biomedical is an integrated biotechnology company dedicated to the
development of innovative vaccine products. It operates in research,
development, manufacturing, sales and marketing from its facilities in Canada
and in the United States. ID Biomedical is dedicated to becoming a premier
vaccine company with significant marketed products worldwide and an extensive
pipeline in both clinical and preclinical development.
ID Biomedical has a leading position in the Canadian influenza vaccine market.
It received a ten-year mandate from the Government of Canada in 2001 to assure
a state of readiness in the case of an influenza pandemic and provide influenza
vaccine for all Canadians in such an event. It also currently supplies
approximately 75% of the Canadian government's influenza vaccine purchases.
For further information on ID Biomedical, please visit the Company's website at
http://www.idbiomedical.com/.
(x) NeisVac-C is a trademark of Baxter International Inc. and is used
under license.
The information in this news release contains so-called "forward-looking"
statements. These include statements regarding ID Biomedical's expectations and
plans relating to the integration of the vaccine business acquired from Shire,
statements about ID Biomedical's expectations, beliefs, intentions or
strategies for the future, which may be indicated by words or phrases such as
"anticipate", "expect", "intend", "plan", "will", "we believe", "ID Biomedical
believes", "management believes", and similar language. All forward-looking
statements are based on ID Biomedical's current expectations and are subject to
risks and uncertainties and to assumptions made. Important factors that could
cause actual results to differ materially from those expressed or implied by
such forward-looking statements include: (i) the company's ability to
successfully integrate the Shire vaccine business; (ii) the company's ability
to successfully complete preclinical and clinical development of its products;
(iii) the company's ability to manufacture its products; (iv) the seasonality
of the flu-vaccine business and related fluctuations in the company's revenues
from quarter to quarter; (v) decisions, and the timing of decisions, made by
the health regulatory agencies regarding approval of its products for human
testing; (vi) the company's ability to enter into distribution agreements for
its products, and to complete and maintain corporate alliances relating to the
development and commercialization of its technology and products; (vii) market
acceptance of its technologies and products; and (viii) the competitive
environment and impact of technological change and other risks detailed in the
company's filings with the Securities and Exchange Commission. ID Biomedical
bases its forward-looking statements on information currently available to it,
and assumes no obligation to update them.
For further information, please contact:
Investor Relations/Media
Dean Linden Michele Roy
(604) 431-9314 (450) 978-6313
DATASOURCE: ID Biomedical Corporation
CONTACT: Investor Relations/Media, Dean Linden, (604) 431-9314,
; Michele Roy, (450) 978-6313,
;
To request a free copy of this organization's annual report, please go to
http://www.newswire.ca/ and click on reports@cnw.