- At least $21 million of expected base case income for 2012 communicated
- Closing of $10 million orphan drug license and strategic manufacturing deal with Hematech Biotherapeutics (“HBI”)
- 2012 corporate objectives and first quarter 2012 guidance communicated
- Cash management: $1.0 million worth of private placements secured
- P-Capt® filter safety confirmed following PRISM study results
LAVAL, QUEBEC, CANADA – May 9, 2012 – ProMetic Life Sciences Inc. (TSX: PLI) (“ProMetic”or the “Corporation“) today reported highlights of its 2012 annual and special meeting of shareholders.
At least $21 million of base case income for 2012:
The Corporation indicated that it expected in 2012 in excess of $21 million of base case income in 2012 from product sales and service revenues; three times that of its total product sales and services revenues for 2011. This base case income includes:
- – $7.5 million worth of business so far from multiple clients / recurring orders and ongoing development programs;
- – $5.9 million of product shipments to Octapharma;
- – $2.5 million agreement with existing client to proceed to the next stage of an ongoing development program;
- – $1.4 million agreement with a European biotechnology manufacturing company to develop an affinity resin product and related manufacturing process;
- – $1.9 million follow-on purchase order pursuant to an existing long-term supply agreement entered into with a US based biopharmaceutical company; and
- – $2.0 million expected from Hematech .
Hematech $10 million orphan drug license and strategic manufacturing deal
ProMetic and Hematech Biotherapeutics Inc. (“HBI”) closed a $10 million orphan drug license and strategic manufacturing deal under which:
- – The $10 million from HBI will fund the Orphan Drug’s development program up to regulatory approval;
- – A $1 million upfront payment will be followed by $9 million staged payments to ProMetic related to defined development milestones;
- – $5 million of the development fees are expected over the course of the next 15 to 18 months;
- – Following the completion of clinical trials and regulatory approval, the Orphan Drug will be commercialized jointly by ProMetic and HBI on a global basis (excluding China), with both parties sharing profits equally;
- – HBI will fully fund the construction and operating costs of a new cGMP plant dedicated to manufacture plasma-derived therapeutics for ProMetic and its licensees; and
- – The Orphan Drug will be manufactured by ProMetic in its Laval facility and in HBI’s planned facility in Taiwan.
2012 Corporate Objectives and First Quarter 2012 Guidance
The Corporation closed since the beginning of the year a number of commercial and financial transactions that will provide a solid foundation for a stronger revenue pipeline in 2012 and beyond.
The Company’s objective is to deliver during 2012 and beyond, the following achievements:
- – The broadening of its customer base, both in territory and type;
- – Revenue growth in existing product and service sales;
- – Improvement of liquidity and financial position;
- – Operational launch of ProMetic NewCo in Laval, Quebec;
- – Improvement in all key financial indicators; and
- – New programs/strategic alliances development.
“Our first quarter financial revenue results clearly do not reflect all the progress recently accomplished. Since our revenues do not accrue in a linear manner and due to the complex manufacturing environment we are involved in, it is not abnormal to still experience significant lead time between order receipt, product deliveries and revenue recognition.”, said Mr. Bruce Pritchard, ProMetic’s Chief Financial Officer. “Our 2012 product sales and service revenues will continue improving sequentially as the year progress”.
We anticipate total revenues for the first quarter of 2012 to be approximately $1.0 million, predominantly coming from product sales and a modest contribution from development services while deferred revenues should reach approximately $2 million.
We anticipate the net loss to reach approximately $4.7 million or $0.01 per share (basic and diluted), for the quarter ended March 31, 2012, as compared to a net loss of $2.7 million or $0.01 per share (basic and diluted) for the quarter ended March 31, 2011.
Cash management and private placements
Management believes that the difficult liquidity situation will continue to improve in the coming months and that its overall cash generating business prospects remain extremely attractive for the coming quarters. The Company will continue to closely control as much as possible its costs structure to reduce cash outflows.
The Corporation secured private placements with each of Galloway Limited and Regent Mercantile Holdings Limited for a total amount of $1.0 million. As consideration, these investors collectively received a total of 9,090,908 shares in ProMetic’s share capital at a share price of $0.11 and 3,636,363 warrants exercisable at a price of $0.18 over the next 2 years.
“Investments have been provided by long term shareholders and new strategic investors who believe in the fundamentals and the long term value of Prometic”, stated Mr. Pierre Laurin, ProMetic’s President and Chief Executive Officer. “As the company delivers on its business plan and solidifies its recurring revenue base, it will become less dependent on the capital market”, added Mr. Laurin.
P-Capt® Filter Update
In April, 2012, the Corporation announced the publication of the final results of the Prion-filtered vs. standard Red cells in Surgical and Multi-transfused patients (“PRISM“) study by the UK Advisory Board for the Safety of Blood Tissues and Organs (“SaBTO“). These results indicate that the use of P-Capt® filtered red cells does not reduce the overall safety of transfusion. The PRISM study results are consistent with positive results from previous studies conducted.
New data was presented at the Prion 2012 conference in Amsterdam were summarized during the AGM and pertains to a cynomolgus macaque bioassay developed at the CEA in France. This model is described as the most relevant model for human prion disease owing to the very close genetic make-up of primates. In summary:
- Further study conducted in cynomolgus macaque model conducted by Macopharma and CEA Prion Research Group
- Compelling data presented at Prion 2012 conference in Amsterdam
- Animals in Leuco-reduced red cells (“L-RBC”) had symptoms and died
- Animals in P-Capt® filtered L-RBC group remained asymptomatic after 45 months
- Demonstrate beyond any doubt P-Capt® filter efficacy
- Leuco filtration alone does not provide adequate protection
“We are proud to have already secured more than three times the base income equivalent of our 2011 product sales and services revenues after just four months into 2012. The closing of new deals and manufacturing agreements has led us to be well positioned to exceed our financial objectives going forward”, mentioned Mr. Pierre Laurin, ProMetic’s President and Chief Executive Officer.
The following directors were elected to ProMetic’s Board of Directors at the Annual and Special Meeting of the Shareholders:
Mr. G.F. Kym Anthony
Mr. Robert Lacroix
Mr. Pierre Laurin
Ms Diane Liguori
Ms. Louise Ménard
Mr Paul Mesburis
Dr. John Moran
Ms Nancy Orr
Mr. Bruce Wendel
Mr Benjamin Wygodny
“I would also like to take this opportunity to thank Dr. Roger Perrault. Dr. Perrault has had multiple tenures on Prometic’s Board of Directors and has decided to retire. On behalf of the Board, Management and the employees of ProMetic, I would like to thank Roger for his hard work and dedication to ProMetic over the years. His expertise in the plasma and blood related products field has been an essential asset for all of us. We wish Roger all the best in this new Chapter in his life”, said Mr. Pierre Laurin, ProMetic’s President and Chief Executive Officer. “We also wish to sincerely thank all of our dedicated employees and collaborators for their hard work and cooperation, our Board of Directors for the valuable guidance provided as well as all our shareholders for their ongoing support and loyalty as we keep building a stronger Company”, added Mr. Laurin
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (“ProMetic”) (http://prometic.com/) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic LigandTM technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic “drug-like” protein mimetics. Headquartered in Laval (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic’s objectives, strategies and businesses that involve risks and uncertainties. These statements are “forward-looking” because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic’s ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 24 of ProMetic’s Annual Information Form for the year ended December 31, 2011, under the heading “Risk and Uncertainties related to ProMetic’s business”. As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.