BioTransplant Reports Third Quarter 2002 Financial Results.Business Editors CHARLESTOWN Charlestown, town, St. Kitts-Nevis Charlestown, town (1991 pop. 1,411) on the island of Nevis, St. Kitts and Nevis, West Indies. Charlestown is the chief town and port of the island. , Mass.--(BUSINESS WIRE)--Nov. 15, 2002 - Company Announces Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and Notice to Gambro Gambro is a Swedish medical technology company funded by Holger Crafoord 1964. Among their products are machines used for dialysis. Gambro divested its chain of dialysis clinics in North America to Davita in 2005. BCT BCT Brigade Combat Team BCT Basic Combat Training BCT Best Conventional Pollutant Control Technology (EPA) BCT Business Cards Tomorrow BCT Banque Centrale de Tunisie (Central Bank of Tunisia) of Breach of Eligix(TM)Distribution Agreement - BioTransplant Incorporated (Nasdaq: BTRN) today reported financial results for the third quarter ended September September: see month. 30, 2002. The Company also announced a restructuring plan intended to preserve its rights to MEDI- medi- prefix meaning middle. 507 while reducing its cash burn rate. BioTransplant intends to evaluate possible partnering agreements, divestitures or closures of all programs and assets other than MEDI-507. A primary focus of this new initiative will be to secure a partner for the development of BioTransplant's proprietary AlloMune(R) System primarily for the treatment of hematological malignancies Although hematological malignancies are a form of cancer, they are generally treated by specialists in hematology, although in many hospitals oncology specialists also manage these diseases. and solid organ transplants solid organ transplant Immunology A transplanted solid organ–eg, heart, liver, kidney, as contrasted to 'liquid' transplanted tissues–eg, BM, pancreatic islets. See Transplant, Transplantation. . In conjunction with the restructuring, BioTransplant has given all employees a tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. notice of termination at a future date. If the partnering efforts are successful by that date, the Company will reevaluate this proposed reduction in force. Finally, the Company expects to implement additional changes in the future as part of this restructuring plan. "We were disappointed to learn that the development timeline
Timeline may refer to:
Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. goal of realizing the potential value of the MEDI-507 program." stated Donald B. Hawthorne, Chief Executive Officer of BioTransplant. The Company also announced today that it has notified Gambro BCT, Inc. that it believes that Gambro is in material breach of the distribution agreement between the parties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the distribution of the Eligix(TM) HDM HDM - SPECIAL Cell Separation Systems. Under the terms of the agreement, unless Gambro cures its breach within the cure period specified in the agreement, the agreement will automatically terminate. Gambro has separately informed BioTransplant that it intends to seek dispute resolution under the terms of the agreement with respect to certain issues. Upon the expected termination of the Gambro distribution agreement, the Company plans to seek additional partners for the Eligix(TM) HDM Cell Separation Systems. Third Quarter 2002 Financial Results BioTransplant reported a net loss for the third quarter of 2002 of $5.17 million, or $0.20 per share. This compares to a net loss of $24.08 million, or $1.08 per share, in the second quarter of this year, which included a loss from impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $17.96 million related to the goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. acquired by BioTransplant in its acquisition of Eligix, Inc. in 2001. For the third quarter of 2001, the Company reported a net loss of $6.77 million, or $0.35 per share, which included $0.7 million of goodwill amortization related to the acquisition of Eligix, Inc. in 2001. Weighted average shares outstanding for the quarters ended September 30, 2002 and 2001 were approximately 25.34 million and 19.28 million, respectively. Revenues for the third quarter of 2002 totaled $0.34 million, compared to $0.21 million in revenues reported for the same quarter last year. Revenues for the three months ended September 30, 2002 were due to product sales of $0.13 million and $0.21 million in Gambro milestone payments and upfront license fees, compared to product sales of $0.09 million and upfront license fees of $0.12 million in the third quarter of 2001. The increase in product sales and upfront license fees in the third quarter of 2002, as compared to the same period last year, is mainly due to the Company entering into an agreement with Gambro BCT in August of 2001. The Gambro milestone payments and upfront license fees have been recognized ratably over the expected remaining life of the Gambro BCT distribution agreement. Research and development expenses for the three months ended September 30, 2002 were $2.99 million, compared to $2.99 million for the comparable period of 2001. Sales, general and administrative expenses for the three months ended September 30, 2002 were $1.73 million, compared to $1.28 million for the comparable period of 2001. The Company had cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $8.64 million as of September 30, 2002, as compared to $13.24 million as of June 30, 2002. Conference Call BioTransplant senior management will host a conference call at 8:30 AM Eastern Time on Friday November 15, 2002 to discuss these results. The conference call may be accessed by dialing 800-360-9865 for domestic callers, and 973-694-6836 for international callers. A replay of the conference call will be available from 10:00 am Eastern Time on November 15, 2002 through November 21, 2002, and may be accessed by dialing 800-428-6051 for domestic callers and 973-709-2089 for international callers. The passcode is 269132. About BioTransplant BioTransplant Incorporated, headquartered in Charlestown, Massachusetts Charlestown is a part of the city of Boston, Massachusetts located on a peninsula north of Boston proper. , is a biotechnology company whose field of research includes treatments for cancer and autoimmune diseases Autoimmune diseases A group of diseases, like rheumatoid arthritis and systemic lupus erythematosus, in which immune cells turn on the body, attacking various tissues and organs. Mentioned in: Complement Deficiencies, Premature Menopause and organ and tissue transplantation transplantation /trans·plan·ta·tion/ (trans?plan-ta´shun) the grafting of tissues taken from the patient's own body or from another. , for which current therapies are inadequate. Siplizumab (MEDI-507), a lead product the Company exclusively licensed to MedImmune, is in Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II for the treatment of psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the . The Company's AlloMune System is being developed to treat a variety of hematologic malignancies hematologic malignancy Hematologic cancer Hematology Any CA of blood-forming tissues, BM, or lymph nodes–eg, leukemia and lymphoma and solid organ transplants, and the Company owns Eligix Inc., a biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. device company. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about BioTransplant that involve risks and uncertainties, including, without limitation, statements relating to the potential termination of the Gambro distribution agreement, the Company's ability to take necessary measures to reduce its cash burn rate, maximize the value of its assets and achieve its long term corporate objectives, and the progress of clinical trials for MEDI-507. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from those currently anticipated as a result of a number of factors. Important factors that could cause future results to differ materially from such forward-looking statements include, but are not limited to: BioTransplant's ability to successfully negotiate partnering agreements for its programs and/or to otherwise secure the additional funding required for its operations and research and development programs; uncertainties relating to the successful resolution of BioTransplant's claims under the Gambro agreement; BioTransplant's and its third party collaborators' ability to successfully discover, develop and commercialize its products, obtain and maintain required regulatory approvals in a timely fashion, and overcome other difficulties inherent in developing and commercializing therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , therapeutic devices and therapeutic regimens; market acceptance and penetration of BioTransplant's Eligix(TM) HDM Cell Separation Systems in the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community ; BioTransplant's ability to obtain and enforce the patent protection required for its products; and BioTransplant's ability to maintain collaborations and distribution arrangements with third parties. For a detailed discussion of these and other factors, see the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Business -- Factors That May Affect Results" in BioTransplant's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2001, as filed with the Securities and Exchange Commission, and other filings that we may make with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this news release. BioTransplant does not intend to update any of these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that occur after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" .
BIOTRANSPLANT INCORPORATED AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
September 30,
------------------------------
--------------- -------------
2002 2001
---- ----
Revenues $ 345 $ 212
--------------- -------------
--------------- -------------
Expenses:
Cost of revenues 289 58
Research and development 2,994 2,987
Selling, general and administrative 1,731 1,283
Amortization of intangibles 286 1,011
Stock compensation 233 1,748
--------------- -------------
--------------- -------------
Total operating expenses 5,533 7,087
--------------- -------------
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Interest income 40 160
Interest expense (22) (51)
--------------- -------------
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Net Loss ($5,170) ($6,766)
=============== =============
=============== =============
Basic net loss
per common share ($0.20) ($0.35)
=============== =============
Shares used in computing basic
net loss per common share 25,341 19,278
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BIOTRANSPLANT INCORPORATED AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Nine Months Ended
September 30,
-------------------------------
--------------- ---------------
2002 2001
---- ----
Revenues $1,214 $ 212
--------------- --------------
--------------- --------------
Expenses:
Cost of revenues 574 58
Research and development 11,554 7,878
Selling, general and administrative 3,961 2,647
Amortization of intangibles 1,071 1,514
Stock compensation 1,979 3,098
In-process research and development
(IPRD) - 20,000
Loss from impairment 17,957 -
--------------- --------------
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Total operating expenses 37,096 35,195
--------------- --------------
--------------- --------------
Interest income 115 441
Interest expense (104) (92)
--------------- --------------
--------------- --------------
Net Loss ($35,871) ($34,634)
=============== ==============
=============== ==============
Basic net loss
per common share ($1.56) ($2.28)
=============== ==============
Shares used in computing basic
net loss per common share 22,963 15,169
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=============== ==============
SELECTED BALANCE SHEET INFORMATION
September 30, December 31,
2002 2001
--------------- --------------
Cash, cash equivalents and investments $8,643 $14,245
Total assets 22,959 49,739
Stockholders' equity 14,600 38,879
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