- Secured business for 2012 now exceeds $21 million; points to progressively stronger quarters
- $4.4 million of cash received to date from upfront payments and equity investments
- $1.1 million of revenue recognized in the first quarter
LAVAL, QUEBEC, CANADA – May 14, 2012 – ProMetic Life Sciences Inc. (TSX: PLI) (“ProMetic”or the “Corporation“) today reported its financial results and highlights for the first quarter of 2012. All amounts are in Canadian dollars unless otherwise indicated.
“In the first four months of 2012, ProMetic has already secured business valued at more than three times the product sales and service revenue achieved in all of 2011. We expect to further increase this performance as the year progresses”, stated Mr. Pierre Laurin, ProMetic’s President and Chief Executive Officer.
First Quarter 2012 Highlights and Subsequent Events to Date
The Corporation confirmed that its secured business for 2012, which exceeds $21 million as of this date versus total 2011 record revenues of $17.6 million, consists of the following contracts and orders:
- – $7.5 million received and anticipated from multiple established clients for recurring product orders and ongoing development programs;
- – $5.9 million from Octapharma for product orders and forecast requirements;
- – $2.5 million from an existing client to proceed to the next stage of an ongoing development program.
- – $1.4 million agreement from a European biotechnology manufacturing company to develop an affinity resin product and its related manufacturing process.
- – $1.9 million follow-on product order from a US based biopharmaceutical company pursuant to an existing long-term supply agreement for the manufacturing of an established biopharmaceutical product; and
- – $2.0 million of upfront and milestone payments in 2012 from Hematech Biotherapeutics from $10 million orphan drug license and strategic manufacturing deal for the co-development and co-exclusive commercialization, on a world-wide basis (excluding China), of a plasma-derived biopharmaceutical product.
- – To date, the Corporation has received a total of $4.4 million in cash from a combination of upfront payments from clients’ follow-on product orders, new agreements as well as from private equity investments secured from existing long term shareholders and new strategic investors.
First Quarter Financial Highlights
The financial information in regards to the three month period ended March 31, 2012 should be read in conjunction with the Company’s financial statements as well as the Management’s Discussion and Analysis dated May 14, 2012.
Total revenues for the first quarter of 2012, which were derived from product sales and development services, were $1.1 million compared with $0.9 million for the same quarter of 2011. Total revenue of $2.8 million in the first quarter 2011 included $1.9 million revenue from the 2011 licensing transaction with Celgene Corporation.
The Company generated a net loss of $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.
“Our goal is to become self-funding and profitable as quickly as possible; clearly, our first quarter financial revenue results are not indicative of how strong this year will be in terms of revenue”, said Mr. Bruce Pritchard, ProMetic’s Chief Financial Officer. “Consequently, the Company has had to continue to raise funds using both debt and equity, in order to bridge the gap. This, in combination with upfront advances received from our clients. has been sufficient to offset our short-term liquidity requirements”, added Mr. Pritchard.
The first few months of 2012 have allowed the Company to announce transactions that provide a solid foundation for a stronger revenue pipeline for 2012 and future years. This, when coupled with the current opportunities in the pipeline, should result in a sustained positive progression of business revenues, income and a reduction in the need for bridge funding.
The Company’s objectives for 2012 and beyond are to deliver 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’s NewCo in Laval, Quebec;
- – Improvement of all key financial indicators; and
- – Closing of new programs and strategic alliances.
First Quarter 2012 Conference Call Information
ProMetic will host a conference call at 10:00am (EST) on Tuesday, May 15, 2012. The telephone numbers to access the conference call are (416) 981-9000 (International) and 1-800-757-7641 (Toll-free). A replay of the call will be available from May 15, 2012 until May 22, 2012. The numbers to access the replay are 1-416-626-4100 (#21591766) and 1-800-558-5253 (21591766). A live audio webcast of the conference call will be available through ProMetic’s website.
Additional Information in Respect to the Three month Period ended March 31, 2012
ProMetic’s MD&A and 2012 First Quarter Financial Statements have been filed on Sedar (http://www.sedar.com/) and are available on the Company’s website at prometic.com.
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.