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BioTransplant Reports 2002 First Quarter Results.

Business Editors

CHARLESTOWN, Mass.--(BUSINESS WIRE)--May 13, 2002

BioTransplant Incorporated (Nasdaq: BTRN) today reported financial results for the quarter ended March 31, 2002.

Revenues for the first quarter of 2002 increased to $477,000, compared to $0 in revenues reported for the same quarter in 2001. The increase in revenues was primarily due to $262,000 in product sales of the Eligix(TM) HDM Cell Separation Systems, which were launched in Europe during the fourth quarter of 2001 by the Company's distribution partner, Gambro BCT. In addition, $215,000 in license and milestone revenue was recognized in the first quarter from a total of $6.0 million in upfront license fees and milestone payments received in connection with the Company's exclusive distribution agreement with Gambro. The upfront fees and milestone payments under the Gambro distribution agreement are being recognized as revenue ratably over the life of the agreement.

Research and development expenses for the three months ended March 30, 2002 increased to $4.2 million, from $2.0 million for the three months ended March 30, 2001. General and administrative expenses for the first quarter of 2002 increased to $1.2 million from $0.5 million for the same period a year ago. The increase in both research and development expenses and general and administrative expenses was primarily due to the inclusion of Eligix' operations, which are included in operating expenses beginning May 15, 2001, the date of the Company's acquisition of Eligix, Inc.

For the quarter ended March 31, 2002, the Company reported a net loss of $6.6 million, or $0.31 per share, compared to a net loss of $2.3 million, or $0.20 per share, for the same period in 2001.

The Company had cash, cash equivalents and short-term investments of $10.1 million as of March 31, 2002, as compared to $14.7 million as of December 31, 2001. The Company has recently announced a cost reduction program, which comprises a reduction in workforce and spending cuts impacting all segments of the Company. As a result of this program, the Company expects to have sufficient operating capital to continue operations into 2003.

"We continue to see encouraging clinical results from our portfolio of product candidates, and we are committed to advancing the development of these therapeutics," commented Elliot Lebowitz, Ph.D., Chief Executive Officer of BioTransplant. "Recent data suggests that the AlloMune System may help to reduce or eliminate the need for immunosuppressive therapy, and our collaborator, Massachusetts General Hospital, has just initiated an additional trial evaluating this treatment regimen in kidney transplant patients, in addition to ongoing trials in cancer patients. In our other clinical programs, we see increasing support for the use of our Eligix(TM) HDM Cell Separation System, and we expect further results from MedImmune's Phase II trials of our siplizumab monoclonal antibody product in psoriasis patients in the third quarter this year."

First Quarter Highlights
- Immerge BioTherapeutics BioTransplant's joint venture with Novartis Pharma
AG, Immerge BioTherapeutics, is focused on developing therapeutic applications
for xenotransplantation. During the quarter, the companies reported progress on
the joint venture's discovery efforts.

- In the online edition of Science, researchers from the University of
Missouri-Columbia and Immerge BioTherapeutics Inc. reported they have
successfully cloned the world's first miniature swine with a specific gene that
causes hyperacute rejection eliminated.

- Immerge researchers announced the identification of miniature swine that
failed to produce porcine endogenous retrovirus (PERV) in cultures of human
cells. This study appeared in the March 2002 issue of the Journal of Virology.


In March 2002, BioTransplant presented significant developments in

the use of its proprietary Eligix(TM) Cell Separation Systems at

the European Bone Marrow Transplant Annual Meeting. A number of

presentations highlighted the potential of the device in reducing

graft-versus-host disease (GVHD) and purging tumor cells.

- AlloMune System

BioTransplant's AlloMune System, which will combine siplizumab

with the Eligix(TM) Cell Separation System, is under development

as a treatment regimen to more aggressively attack cancer or to

induce patient's acceptance of a transplanted organ without

long-term administration of immunosuppressive drugs.

Shortly after the close of the first quarter of 2002,

BioTransplant announced the initiation of two clinical trials

funded by the Immune Transplant Network (ITN). One trial will

evaluate the AlloMune System in patients with kidney failure that

have a blood cell cancer and one study will evaluate the AlloMune

System in patients that do not have cancer.


- Immerge BioTherapeutics BioTransplant's joint venture with Novartis Pharma
AG, Immerge BioTherapeutics, is focused on developing therapeutic applications
for xenotransplantation. During the quarter, the companies reported progress on
the joint venture's discovery efforts.

- In the online edition of Science, researchers from the University of
Missouri-Columbia and Immerge BioTherapeutics Inc. reported they have
successfully cloned the world's first miniature swine with a specific gene that
causes hyperacute rejection eliminated.

- Immerge researchers announced the identification of miniature swine that
failed to produce porcine endogenous retrovirus (PERV) in cultures of human
cells. This study appeared in the March 2002 issue of the Journal of Virology.


About BioTransplant

BioTransplant Incorporated, headquartered in Charlestown, Massachusetts, is developing a portfolio of products for application in a range of medical conditions, including treatment of cancer and autoimmune diseases, organ and tissue transplantation, for which current therapies are inadequate. Siplizumab (MEDI-507), a lead product we exclusively licensed to MedImmune, is in Phase II clinical trials for the treatment of psoriasis. In addition, the Company is developing the AlloMune System, which is designed to treat a variety of hematologic malignancies, and its distribution partner Gambro BCT markets the Eligix family of cell separation products in Europe for use in bone marrow, stem cell and donor leukocyte transplants.

Conference Call

BioTransplant management will be holding a conference call at 10:00 a.m. Eastern Time today to discuss these results. Investors may access the call at the company's website at www.biotransplant.com. This call will not be archived or available for replay.

This news release contains forward-looking statements about BioTransplant that involve risks and uncertainties, including statements about our expectations with respect to our ability to fund operations into 2003. 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 secure the additional funding required for its operations and research and development programs; 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, therapeutic devices and therapeutic regimens; market acceptance and penetration of BioTransplant's Eligix(TM) HDM Cell Separation Systems in the European Union; 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 "Business - Factors Which May Affect Results" in BioTransplant's current annual report on Form 10-K, as filed 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 that occur after the date hereof.

 BIOTRANSPLANT INCORPORATED AND SUBSIDIARY
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In Thousands, Except Per Share Amounts)
 (Unaudited)

 Three Months Ended
 March 31,
 ------------------------
 ------------------------
 2002 2001
 ---- ----

Revenues $ 477 $ --
 -------- --------
Expenses:
 Cost of revenues 158 --
 Research and development 4,199 1,985
 General and administrative 1,171 482
 Amortization of intangibles 393 --
 Stock-based compensation 1,156 --
 -------- --------
 Total operating expenses 7,077 2,467
 -------- --------
 Interest income 34 170
 Interest expense (52) (14)
 -------- --------
Net Loss ($ 6,618) ($ 2,311)
 ======== ========
Basic net loss
 per common share ($ 0.31) ($ 0.20)
 ======== ========
Shares used in computing basic
 net loss per common share 21,293 11,796
 ======== ========


 SELECTED BALANCE SHEET INFORMATION

 March 31, December 31,
 2002 2001
 --------- ---------

Cash, cash equivalents and investments $10,095 $14,657
Total assets 44,144 49,739
Stockholders' equity 33,573 38,879
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