Medgenics Announces First Quarter Financial Results
May 12 2011 - 12:47PM
Business Wire
Medgenics, Inc. (NYSE Amex: MDGN and MDGN.W and London Stock
Exchange-AIM: MEDG and MEDU) (the “Company”), the developer of a
novel technology for the sustained production and delivery of
therapeutic proteins in patients using their own tissue, today
announces financial results for the three months ended March 31,
2011 and the filing with the U.S. Securities and Exchange
Commission of its Quarterly Report on Form 10-Q for the three
months ended March 31, 2011. The Form 10-Q contains unaudited
interim consolidated financial statements containing the
information highlighted below, as well as additional information
regarding the Company. The Form 10-Q is available at the Securities
and Exchange Commission’s website at http://www.sec.gov/ and on the
Company’s website at www.medgenics.com.
Financial Summary (unaudited)
- R&D expense, net for the first
quarter of 2011 increased to $1.17 million from $0.30 million for
the first quarter of 2010, due to an increase in the use of
sub-contractors in connection with the ongoing Phase I/II clinical
trial of EPODURE, increased expenses in developing the HEMODURE
Biopump to produce Factor VIII, preparation for the trial of the
INFRADURE Biopump and decreases in participations in R&D
costs.
- General and administrative expense was
$0.78 million for the first quarter of 2011 compared with $0.67
million for first quarter of 2010, with the increase due primarily
to management consulting fees.
- The net loss for the first quarter of
2011 was $0.34 million or $0.06 per share, compared with net income
of $2.31 million or $0.28 per diluted share for the first quarter
of 2010, primarily a result of non-cash financial income of $2.7
million that resulted from a decrease in the fair value of warrants
and convertible debentures, presented as liabilities.
- Cash, cash equivalents and short-term
investments as of March 31, 2011 were $1.35 million, compared with
$2.86 million as of December 31, 2010.
- In April and May 2011, the Company
completed its U.S. initial public offering and partial underwriter
overallotments, and raised gross proceeds of $13.21 million, or
approximately $10.64 million in net proceeds after deducting $2.57
million of underwriting discounts, commissions and other offering
costs.
Andrew Pearlman, Ph.D., President and Chief Executive Officer of
Medgenics, commented “During the first quarter of 2011, Medgenics
worked diligently to complete its initial public offering in the
United States, which was successfully consummated on April 13,
2011, while continuing our ongoing Phase I/II clinical trial of our
lead product candidate, the EPODURE Biopump producing
erythropoietin to treat anemia. We are excited about the coming
months as we work to complete the EPODURE trial, prepare for a
Phase I/II clinical trial of the INFRADURE Biopump producing
interferon-a to treat hepatitis C and engage in further research
and development of the HEMODURE Biopump to produce Factor VIII to
treat hemophilia.”
About Medgenics
Medgenics is developing and commercializing Biopump, a
proprietary tissue-based platform technology for the sustained
production and delivery of therapeutic proteins. Biopumps are
processed autologous tissue for the treatment of a range of chronic
diseases including anemia, hepatitis C and hemophilia. Medgenics
believes this approach has multiple benefits compared with current
treatments, which include regular and costly injections of
therapeutic proteins.
Medgenics has three products in development based on this
technology: EPODURE (in a Phase I/II dose-ranging trial) is a
long-acting protein therapy intended to produce and deliver
erythropoietin from a single administration in a steady manner for
up to six months and more in patients with anemia; INFRADURE (to
commence a Phase I/II trial in Israel in 2011) is a long-acting
protein therapy designed to produce a sustained therapeutic dose of
interferon-alpha to treat hepatitis C; and HEMODURE is being
developed as a sustained Factor VIII therapy for the prophylactic
treatment of hemophilia.
Medgenics intends to develop its innovative products and bring
them to market via strategic partnerships with major pharmaceutical
and/or medical device companies. In addition to treatments for
anemia, hepatitis C and hemophilia, Medgenics plans to develop
and/or out-license a pipeline of future Biopump products targeting
the large and rapidly growing global protein therapy market, which
is forecast to reach $132 billion in 2013. Other potential
applications for Biopumps include multiple sclerosis, arthritis,
pediatric growth hormone deficiency, obesity and diabetes.
Forward-looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934 and as that term is defined
in the Private Securities Litigation Reform Act of 1995, which
include all statements other than statements of historical fact,
including (without limitation) those regarding the Company's
financial position, its development and business strategy, its
product candidates and the plans and objectives of management for
future operations. The Company intends that such forward-looking
statements be subject to the safe harbors created by such laws.
Forward-looking statements are sometimes identified by their use of
the terms and phrases such as "estimate," "project," "intend,"
"forecast," "anticipate," "plan," "planning, "expect," "believe,"
"will," "will likely," "should," "could," "would," "may" or the
negative of such terms and other comparable terminology. All such
forward-looking statements are based on current expectations and
are subject to risks and uncertainties. Should any of these risks
or uncertainties materialize, or should any of the Company's
assumptions prove incorrect, actual results may differ materially
from those included within these forward-looking statements.
Accordingly, no undue reliance should be placed on these
forward-looking statements, which speak only as of the date made.
The Company expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based.
As a result of these factors, the events described in the
forward-looking statements contained in this release may not
occur.
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