ID Biomedical reports 2005 first quarter results VANCOUVER, May 16
/PRNewswire-FirstCall/ -- ID Biomedical Corporation (TSX: IDB;
NASDAQ: IDBE) announced today financial results for the quarter
ended March 31, 2005. Amounts, unless specified, are expressed in
Canadian dollars. Commenting on the first quarter, Todd Patrick,
President of ID Biomedical said, "The Company continues to progress
toward our goal of filing a Biologics License Application (BLA)
with the U.S. Food and Drug Administration (FDA) later this year
for our injectable influenza vaccine. In support of this goal, the
Company will be eligible for an accelerated approval, as well as a
priority review mechanism with the FDA. As expected, these
activities will result in additional expenses as we seek licensure
of Fluviral for the U.S. market. The resulting loss this quarter is
consistent with this level of activity and in-line with our
expectations." "The Company also strengthened the cash position as
a result of the sale and lease back transactions relative to our
Laval and Northborough facilities. We ended the quarter with more
cash than we had at the beginning of the period. The strong cash
balance ideally positions the Company to advance not only our
injectable flu vaccine, but also the other vaccines in our
pipeline," continued Mr. Patrick. The Company's first quarter
financial report will be available on our web site and at
http://www.sedar.com/. Highlights of the Company's progress during
the first quarter and a general company update will be discussed on
a conference call/web cast to be held Monday, May 16 at 5:00 pm
Eastern. The presentation can be accessed by dialing 604-677-8677
or at the Company's website at http://www.idbiomedical.com/. A
recording of the call will be available until May 30th by dialing
416-640-1917 and entering the code 21123931 followed by the number
sign. CONDENSED FINANCIAL RESULTS The Company recorded a net loss
of $27.6 million ($0.64 per share) for the three months ended March
31, 2005 compared to a net loss of $10.9 million ($0.26 per share)
for the three months ended March 31, 2004. The results from
operations include the activities of the acquired vaccine business
from Shire beginning September 10, 2004. For the three months ended
March 31, 2005, the Company's revenue totaled $12.8 million
compared to $1.5 million for the three months ended March 31, 2004.
Product sales revenue in the amount of $6.9 million was recorded
for the three months ended March 31, 2005 compared to $0 for the
three months ended March 31, 2004. This revenue primarily relates
to the sales of the Company's NeisVac-C vaccine to the Canadian
government. The Company had no product sales prior to the
acquisition of Shire. Research and development contract revenue in
the amount of $4.3 million was recorded for the three months ended
March 31, 2005 compared to $0.8 million for the three months ended
March 31, 2004. Research and development contract revenue includes
revenue recognized as a result of the Shire Funding Facility to
support the development of the non-flu vaccine candidates acquired
from Shire. Revenue recognized from the Shire Funding Facility
totaled $4.25 million for the three months ended March 31, 2005.
The Company determined that these amounts are appropriate to
recognize as revenue since the amount and date of repayment of
these advances are not known and there is no requirement to repay
any advances if the early stage, non-flu vaccine candidates
acquired from Shire are not successful. Other research and
development contract revenue totaling $0.05 million for the three
months ended March 31, 2005 and $0.8 million for the same period in
2004 is a result of agreements executed during 2003 with Dynport
Vaccine Company for the development of an antigen for a injectable
subunit plague vaccine. Previously deferred licensing revenue in
the amount of $0.7 million was recognized for the three months
ended March 31, 2005, compared to $0.7 million for the three months
ended March 31, 2004. Based on the Company's current licensing
agreements, amortization of deferred licensing revenue is expected
to continue at the present amount through October 2006. The
amortization of deferred licensing revenue does not result in
additional cash to the Company. Other revenue, consisting primarily
of the pandemic readiness fees under an agreement with the
Government of Canada and other fees to store and distribute
vaccines under an agreement with the Quebec Ministry of Health,
totaled $0.9 million for the three months ended March 31, 2005
compared to $0 for the three months ended March 31, 2004. Other
revenue increased as a result of the Shire acquisition. Cost of
product sales for the three months ended March 31, 2005 includes
the expenses related to the distribution of NeisVac-C, costs
related to pandemic readiness fees classified as other revenue, and
other revenue related costs. Cost of product sales was $6.2 million
for the three months ended March 31, 2005 compared to $0 for the
three months ended March 31, 2004. Prior to the acquisition of
Shire, the Company did not have any cost of products sales.
Research and development expenses increased $12.1 million or 119%,
to $22.2 million for the three months ended March 31, 2005 compared
to the three months ended March 31, 2004. The increase in research
and development expenses in 2005, compared to the same period in
2004, is a result of the clinical development programs acquired
from Shire, predominantly the costs being incurred in support of
the U.S. licensure of the Company's injectable influenza vaccine,
Fluviral. Also impacting research and development expenses is the
clinical cost associated with advancing our other lead development
programs, and the funding of our early stage development programs.
Included in research and development expenses is stock-based
compensation expense totaling $1.1 million and $0.4 million for the
three months ended March 31, 2005 and 2004 respectively. Research
and development tax credits and grants include amounts received or
receivable from Technology Partnerships Canada ("TPC"), National
Institutes of Health ("NIH") and provincial government investment
tax credits. Research and development tax credits and grants were
$1.53 million for the three months ended March 31, 2005 compared to
$0.3 million for the three months ended March 31, 2004. There were
$0.29 million in TPC grants recognized for the three months ended
March 31, 2005 compared to $0 million for the three months ended
March 31, 2004. NIH grants totaled $0.89 million for the three
months ended March 31, 2005. There were no NIH grants during the
three months ended March 31, 2004. Provincial government investment
tax credits totaled $0.35 million for the three months ended March
31, 2005 as compared to $0.3 million for the three months ended
March 31, 2004. Selling, general and administrative expenses
increased $4.7 million, or 204% to $7.0 million for the three
months ended March 31, 2005 compared to the three months ended
March 31, 2004. This increase is primarily the result of the
selling and administrative employees acquired in the Shire
acquisition. Also contributing to the increase is cost related to
our Sarbanes-Oxley reporting compliance and stock-based
compensation. Stock-based compensation expense totaled $1.2 million
and $0.5 million for the three months ended March 31, 2005 and 2004
respectively. Depreciation and amortization expense relates to
facilities and equipment and medical technology and other assets.
Depreciation and amortization expense increased $2.8 million, or
258% to $3.9 million for the three months ended March 31, 2005
compared to the three months ended March 31, 2004. These increases
are directly related to the value of the assets acquired in the
Shire acquisition. Investment income decreased $0.1 million to $0.8
million for the three months ended March 31, 2005 compared to the
three months ended March 31, 2004. The Company recorded a foreign
exchange gain of $0.5 million for the three months ended March 31,
2005 as compared to loss a $0.01 million for the three months ended
March 31, 2004. This foreign exchange gain is a result of the U.S.
denominated Shire Funding Facility related to flu advances and the
financing transaction used to repurchase the Shire subscription
receipts. The Company recorded interest expense and other finance
charges of $3.9 million for the three months ended March 31, 2005
compared to $0.01 million for the three months ending March 31,
2004. The increase in interest expense and other finance charges is
a direct result of the flu advances, received under the Shire
Funding Facility and the interest expense and finance charges
associated with the financing transaction that closed on January 5,
2005. Consolidated Balance Sheets (Expressed in Canadian dollars)
March 31, 2005 and December 31, 2004
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March 31, December 31, 2005 2004
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(Unaudited) (Audited) Assets Cash and cash equivalents $
150,149,684 $ 105,068,973 Other current assets 39,239,599
44,611,681
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189,389,283 149,680,654 Long-term receivable 468,278 468,278
Facilities and equipment 145,127,980 186,110,643 Investment 413,644
413,644 Medical technology and other assets 32,427,517 33,358,944
Deferred charges 1,156,124 - Goodwill 771,314 771,314
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$ 369,754,140 $ 370,803,477
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Liabilities and Shareholders' Equity
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Current liabilities $ 102,586,970 $ 95,978,227 Deferred revenue
10,920,657 11,101,339 Long-term debt 122,841,858 37,043,350
Obligation under capital lease 10,671 18,444 Shareholders' equity
133,393,984 226,662,117
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$ 369,754,140 $ 370,803,477
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Consolidated Statements of Operations (Expressed in Canadian
dollars) For the three months ended March 31, 2005 and 2004
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2005 2004
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(Unaudited) (Unaudited - Restated(x)) Revenue: Product sales $
6,875,539 $ - Research and development contracts 4,316,368 843,167
Licensing 689,002 690,259 Other 881,366 -
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12,762,275 1,533,426 Expenses and other: Cost of product sales
6,195,305 - Research and development 22,248,075 10,139,014 Research
and development tax credits and grants (1,530,584) (278,547)
Selling, general and administrative 6,993,108 2,299,904
Depreciation and amortization 3,892,998 1,086,82
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37,798,902 13,247,195
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Loss from operations (25,036,627) (11,713,769) Other income
(expenses): Investment income 844,646 905,760 Foreign exchange gain
(loss) 505,681 (11,816) Interest expense and other finance charges
(3,875,563) (12,156) Loss on disposal of medical technology and
other assets - (26,744)
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(2,525,236) 855,044
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Loss before income taxes (27,561,863) (10,858,725) Income taxes - -
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Loss for the period $ (27,561,863) $ (10,858,725)
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Basic and diluted loss per common share $ (0.64) $ (0.26)
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Weighted average number of shares outstanding 42,771,749 41,967,540
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Consolidated Statements of Cash Flows (Expressed in Canadian
dollars) For the three months ended March 31, 2005 and 2004
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2005 2004
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(Unaudited) (Unaudited - Restated) Cash provided by (used in)
operations: Loss for the period $ (27,561,863) $ (10,858,725) Items
not affecting cash 8,528,445 2,119,038 Net changes in non-cash
working capital balances 5,716,236 (2,600,602)
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Cash used in operating activities (13,317,182) (11,340,289) Cash
used in investment activities 38,021,092 1,123,152 Cash provided by
financing activities 20,376,801 143,326
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Increase (decrease) in cash and cash equivalents 45,080,711
(10,073,811) Cash and cash equivalents, beginning of period
105,068,973 149,087,649
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Cash and cash equivalents, end of period $ 150,149,684 $
139,013,838
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About ID Biomedical ID Biomedical is an integrated biotechnology
company dedicated to the development of innovative vaccine
products. It operates in research, development, manufacturing,
sales and marketing from its facilities in Canada and in the United
States. ID Biomedical is dedicated to becoming a premier vaccine
company with significant marketed products worldwide and an
extensive pipeline in both clinical and preclinical development. ID
Biomedical has a leading position in the Canadian influenza vaccine
market. It received a ten-year mandate from the Government of
Canada in 2001 to assure a state of readiness in the case of an
influenza pandemic and provide influenza vaccine for all Canadians
in such an event. It also currently supplies approximately 75% of
the Canadian government's influenza vaccine purchases. For further
information on ID Biomedical, please visit the Company's website at
http://www.idbiomedical.com/. (x) NeisVac-C is a trademark of
Baxter International Inc. and is used under license. The
information in this news release contains so-called
"forward-looking" statements. These include statements regarding ID
Biomedical's expectations and plans relating to the integration of
the vaccine business acquired from Shire, statements about ID
Biomedical's expectations, beliefs, intentions or strategies for
the future, which may be indicated by words or phrases such as
"anticipate", "expect", "intend", "plan", "will", "we believe", "ID
Biomedical believes", "management believes", and similar language.
All forward-looking statements are based on ID Biomedical's current
expectations and are subject to risks and uncertainties and to
assumptions made. Important factors that could cause actual results
to differ materially from those expressed or implied by such
forward-looking statements include: (i) the company's ability to
successfully integrate the Shire vaccine business; (ii) the
company's ability to successfully complete preclinical and clinical
development of its products; (iii) the company's ability to
manufacture its products; (iv) the seasonality of the flu-vaccine
business and related fluctuations in the company's revenues from
quarter to quarter; (v) decisions, and the timing of decisions,
made by the health regulatory agencies regarding approval of its
products for human testing; (vi) the company's ability to enter
into distribution agreements for its products, and to complete and
maintain corporate alliances relating to the development and
commercialization of its technology and products; (vii) market
acceptance of its technologies and products; and (viii) the
competitive environment and impact of technological change and
other risks detailed in the company's filings with the Securities
and Exchange Commission. ID Biomedical bases its forward-looking
statements on information currently available to it, and assumes no
obligation to update them. For further information, please contact:
Investor Relations/Media Dean Linden Michele Roy (604) 431-9314
(450) 978-6313 DATASOURCE: ID Biomedical Corporation CONTACT:
Investor Relations/Media, Dean Linden, (604) 431-9314, ; Michele
Roy, (450) 978-6313, ; To request a free copy of this
organization's annual report, please go to http://www.newswire.ca/
and click on reports@cnw.
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