- Q2 Revenues of $6.3 million
- Q2 Net profit of $0.8 million
- 2 plasma-derived therapeutic strategic deals executed
LAVAL, QUEBEC, CANADA – August 13, 2012 – ProMetic Life Sciences Inc.(TSX: PLI) (“ProMetic” or the “Corporation”) today reported revenue of $6.3 million, and net profit of $0.8 million for the second quarter of 2012 (quarter ended June 30, 2012).
Revenue of $6.3 million in the second quarter was driven by strong product sales in ProMetic’s bioseparation business as well as by licensing revenues from two strategic plasma-derived therapeutic deals.
“We are pleased to see that our continued efforts to establish short term financial self-sufficiency and long term sustainability are proving successful. We have seen the strengthening of our base case business for 2012 with over $16 million of purchase orders and contracts secured in the second quarter alone and we anticipate ongoing strong results in the second half of 2012”, stated Mr. Pierre Laurin, ProMetic’s President and Chief Executive Officer.
Second Quarter 2012 Highlights
The Corporation confirmed that all remaining forecasted orders previously included in its original 2012 projected $21 million base case business have been secured during the second quarter of 2012. Altogether, during the second quarter, ProMetic confirmed a total of $12.1 million of purchase orders and contracts related to its proprietary affinity adsorbents, and secured two large strategic deals for plasma-derived therapeutics contributing in excess of $4.5 million in 2012 and significantly more in future years.
Among the orders and contracts for proprietary affinity adsorbents were:
- – $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;
- – $4.2 million follow-on purchase order pursuant to its ongoing long-term supply agreement entered into with a major global pharmaceutical company in 2009; and
- – $4.6 million follow-on purchase order under an ongoing long term supply agreement with Octapharma with shipments expected to exceed $2.0 million during the second half of 2012; and
For its plasma-derived therapeutics program ProMetic secured strategic agreements with both Hematech Biotherapeutics Inc. (“HBI”) and NantPharma LLC:
- – The Corporation signed definitive agreements with Hematech Biotherapeutics (“HBI”) for the co-development and co-exclusive commercialization, on a world-wide basis (excluding China), of a plasma-derived biopharmaceutical product targeting a rare medical condition (“Orphan Drug”). The $10 million from Hematech Biotherapeutics will fund the Orphan Drug’s development program up to regulatory approval; $2.0 million of upfront and a first milestone payment in 2012 followed by $8 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 leading to the filing of an IND in the second half of 2013. 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. The Orphan Drug will be manufactured by ProMetic in its Laval facility and in HBI’s planned facility in Taiwan.
- – Along with NantPharma LLC, the Corporation formed an affiliate biopharmaceutical company, NantPro BioSciences, LLC. The newly formed, US-based, company has entered into exclusive development, licensing and manufacturing agreements with ProMetic. Under these agreements, ProMetic has granted NantPro rights to its Plasma Protein Purification System (“PPPSTM“) and Prion Reduction technologies for the exclusive development and commercialization of a plasma-derived biopharmaceutical product for the US market. In addition to a $2.5 million upfront payment, the agreements provide ProMetic with grant back rights to the biopharmaceutical product for markets outside the US, subject to payment of royalties by ProMetic to NantPro arising from ProMetic sales outside the US. Furthermore, additional revenue will also be derived from this relationship from the development and manufacturing services, including the production in its Laval facility of cGMP bulk active batches to enable the IND filing and provide product required for bioequivalence clinical trials. Upon FDA approval, ProMetic will manufacture and supply the commercial requirements of the cGMP bulk active with NantPharma completing the final sterile manufacturing steps.
- – ProMetic secured a 10% interest bearing $0.8 million loan from Conister Bank on the Isle of Man repayable by December 2012.
- – ProMetic successfully renegotiated its working capital grant with the Isle of Man Government Department of Economic Development, which is now repayable no later than February 23, 2013 and bears interest at 5%.
- – As previously disclosed, the Corporation successfully raised equity financing in the amount of $1.4 million during the second quarter of 2012 from long-term shareholders and new strategic investors.
Second Quarter Financial Results and Outlook
The financial information in regards to the three month period ended June 30, 2012 should be read in conjunction with the Corporation’s financial statements as well as the Management’s Discussion and Analysis dated August 13, 2012.
Total revenues for the second quarter of 2012, which were derived from licensing revenues, product sales and development services, were $6.3 million compared with $3.0 million for the same quarter of 2011.
ProMetic generated a net profit of $0.8 million for the quarter ended June 30, 2012, as compared to a net loss of $1.8 million for the quarter ended June 30, 2011.
“We have made solid progress on our business during the second quarter of 2012. The conversion of our base case business into revenues in the form of stronger product sales, service revenues and licensing revenues has allowed for the achievement of profitability in the quarter”, said Mr. Bruce Pritchard, ProMetic’s Chief Financial Officer. “We expect ProMetic’s liquidity situation and ongoing financing requirements to gradually improve in the second half of 2012 and beyond, as we continue delivering against orders and attract other new deals”, added Mr. Pritchard.
Management believes that despite the financial hurdles of 2011 and weaker results of the first quarter of 2012, the Company has made significant progress on securing a solid revenue stream for the remaining quarters of 2012 and beyond as evidenced by the second quarter results. Accordingly, Management is of the opinion that ProMetic is poised to continue to increase revenues and achieve its strategic initiatives in all its business divisions in 2012 and beyond.
Second Quarter 2012 Conference Call Information
ProMetic will host a conference call at 10:00am (EST) on Monday, August 13, 2012. The telephone numbers to access the conference call are (416) 981-9000 (International) and 1-800-381-7839 (Toll-free). A replay of the call will be available from August 13, 2012 until August 20, 2012. The numbers to access the replay are 1-416-626-4100 (21601809) and 1-800-558-5253 (21601809). 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 June 30, 2012
ProMetic’s MD&A and 2012 Second 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.