- $15.6 million total revenues YTD 2013 vs. $15.0 million total revenues YTD 2012
- $32 million of net financing recently secured to advance strategic projects
- Increased in-house development of therapeutic assets in order to partner at later stages and greater values
- 2013 YTD EBITDA loss of $5.4 million compared to EBITDA profit of $0.9 million in 2012
- Complex, non-cash accounting charges and liabilities relating to Thomvest warrants
LAVAL, QUEBEC, CANADA – November 14, 2013 – ProMetic Life Sciences Inc. (TSX: PLI)
(OTCQX: PFSCF) ("ProMetic" or the "Corporation") today reported revenues of $6.0 million and an EBITDA loss of $2.0 million for the third quarter ended September 30, 2013. 2013 year-to-date revenues totaled $15.6 million compared to $15.0 million for the same 2012 period.
Commenting on the financial results for the quarter, Mr. Bruce Pritchard, ProMetic's Chief Financial Officer stated, "Year to date revenues continue to track slightly ahead of 2012. However, the composition of these
revenues has altered with $3.9 million less in licensing revenue being earned in the first 9 months of 2013 versus the same period of 2012. Such revenues, have no associated cost of goods, and therefore directly impact the bottom line and this, coupled with the increase in spending on the preparation of the Laval plant for launch and the progression of PBI-4050 into the clinic, has caused the $6.3 million swing in the year to date EBITDA position". Mr. Pritchard continued, "Additionally, in the quarter, the company was required, under IFRS, to account for a $2.6 million non-cash charge associated with the re-evaluation of the Thomvest warrants. This transaction has led to other accounting matters detailed in the financial statements, which I will explain during this afternoon's conference call".
Commenting on the recently closed $24.0 million equity raise, Mr. Pierre Laurin, ProMetic's President and Chief Executive officer stated, "Given the strengthening of our share price and renewed interest in ProMetic from institutional investors, we decided to raise additional equity in order to reduce the need to solely rely on our partners for the funding of our development activities. This will allow us to retain a greater portion of future commercial revenues". Mr. Laurin added, "We intend to create much more value for our shareholders by exercising greater control and ownership over our own technology platform and related therapeutics rather than solely enabling third parties with it".
Third Quarter 2013 Highlights
During the third quarter of 2013, the Corporation made certain strategic decisions in relation to the advancement of its technology platform on the back of a strengthening in the company's share price. The Corporation decided to embark upon developing more of its near term assets to an advanced stage, prior to
partnering, allowing it to retain a greater portion of these high value/profile products and assets. By exercising greater control and ownership over its own technology platform rather than solely enabling third parties with it, the Company strongly believes it will ultimately significantly increase value creation for all its shareholders. This will be achieved using the proceeds of the equity issue recently closed.
Key quarterly highlights also include:
- The Corporation entered into a licensing and long-term affinity resin supply agreement with one of its existing clients, a global leader in the biotherapeutics industry;
- The Corporation announced that the recovery yield for Alpha-1 Antitrypsin ("AAT") achieved with its proprietary PPPSTM represents a 220% improvement over existing industry average and that it has selected AAT as its second plasma-derived therapeutic to address a well-defined unmet medical need;
- The Corporation presented new pre-clinical data at the 2013 European Respiratory Society ("ERS") annual congress held in Barcelona, Spain, suggesting that PBI-4050 offers a new therapeutic approach to
Idiopathic Pulmonary Fibrosis ("IPF");
- The Corporation secured a $10.0 million loan and issued warrants in a financing transaction with Thomvest Seed Capital Inc. The Corporation will use part of the proceeds for the commissioning of its GMP
facility, which will enable the manufacturing of plasma-derived orphan drugs;
- The Corporation announced that it had successfully completed the required GLP toxicology studies performed by a certified contract research organization confirming that its lead drug candidate, PBI-4050, is
safe to advance into clinical trial stages; and,
- Subsequent to quarter end, the Company announced that, it closed a public offering of common shares in the capital of the Company. The Company issued a total of 26,651,400 Common Shares at a price of $0.90 per Common Share for gross proceeds of $23,986,260. The net proceeds to the Company from the Offering will be used for the advancement of the plasma-derived orphan drug and small molecule therapeutics clinical programs.
Third Quarter 2013 Financial Results
The financial information in regards to the three-month period ended September 30, 2013 should be read in conjunction with the Corporation's financial statements as well as the Management's Discussion and Analysis dated November 14, 2013.
Revenues for the three-month period ended September 30, 2013 were $6.0 million compared to $7.7 million for the same period in the previous year. Revenues for the first nine months of 2013 were $15.6 million compared to $15.0 million for the same period in the previous year. 2013 year-to-date product sales and service revenues totaled $14.0 million compared to $9.6 million in 2012.
ProMetic generated a net loss (including the non-cash warrant liability impact related to the $10.0 million Thomvest financing transaction) of $9.9 million for the first nine months of 2013 compared to a net loss of $1.4 million for the same 2012 period. Corporate investments relating to the advancement of PBI-4050 and
other plasma-derived orphan drugs and the refurbishment of the Laval facility contributed to this increase.
Change in Board Composition
ProMetic also announced today that California Capital Equity LLC has changed its nominated representative on the Corporation's Board of Directors. Accordingly, Mr. Michael Brunelle is being replaced by Mr. Chuck Kenworthy, with immediate effect.
Third Quarter 2013 Conference Call Information
ProMetic will host a conference call at 2:00 pm (ET) on Thursday November 14, 2013 to discuss its third quarter 2013 highlights and financial results. The telephone numbers to access the conference call are 1-416-981-9035 (International) and 1-800-759-0876 (Toll-free). A replay of the call will be available from November 14, 2013 at 3:00 pm until November 28, 2013. The numbers to access the replay are 1-416-626-4100 (passcode: 21686603) and 1-800-558-5253 (passcode: 21686603). A live audio webcast of the
conference call will be available through the following: http://www.gowebcasting.com/5104
Additional Information in Respect to the Three month Period ended September 30, 2013
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (prometic.com) is a long established biopharmaceutical company with globally recognized expertise in bioseparations, plasma-derived therapeutics and small-molecule drug development. ProMetic offers its state of the art technologies for large-scale purification of biologics, drug development, proteomics and the elimination of pathogens to a growing base of industry leaders
and uses its own affinity technology that provides for highly efficient extraction and purification of therapeutic proteins from human plasma in order to develop best-in-class therapeutics. ProMetic is also active in developing its own novel small-molecule therapeutic products targeting unmet medical needs
in the field of fibrosis, anemia, neutropenia, cancer and autoimmune diseases/inflammation as well as certain nephropathies Headquartered in Laval (Canada), ProMetic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and business development activities in the U.S., Europe and Asia.
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 in ProMetic's Annual Information Form for the year ended December 31, 2012, 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.