May 15, 2012 (CNW), LAVAL, QC--
BELLUS Health Inc. (BLU-TSX) ("BELLUS Health" or the "Company") conducted its Annual and Special Meeting of Securityholders in relation to the $17.25 million strategic transaction and financing with Pharmascience Inc. announced on April 5, 2012. The Company also reported its financial results for the first quarter ended March 31, 2012, and provided a corporate update.
Corporate Highlights
- Securityholders have voted in favor of the $17.25 million strategic partnership and financing with Pharmascience, which is expected to close by May 25, 2012.
- 90 patients have been enrolled in the Company's Phase III confirmatory trial for KIACTA™ in AA amyloidosis.
- Preliminary, blinded data from the 78 patients profiled in the Phase III trial demonstrates that demographics and baseline characteristics are very similar to the previous trial.
- Exclusive license and distribution agreement was signed with LevPharm Ltd. for VIVIMIND™ in Israel.
Summary of Financial Results
All currency figures reported in this press release are in Canadian dollars, unless otherwise specified.
- For the three-month period ended March 31, 2012, net loss amounted to $3,193,000, or ($0.01) per share, versus a net income of $3,299,000, or ($0.01) per share, for the corresponding period the previous year. The increase in net loss in the current quarter is mainly attributable to a decrease in finance income period over period, as explained below.
- Revenues amounted to $568,000 for the three-month period ended March 31, 2012, compared to $746,000 for the corresponding period the previous year. Revenues mainly consist of revenue from the asset sale and license agreement as well as the service agreement entered into with Celtic Therapeutics in 2010 for KIACTA™.
- Research and development expenses, net of research tax credits and grants, amounted to $329,000 for the three-month period ended March 31, 2012, compared to $811,000 for the corresponding period the previous year. The decrease is mainly attributable to a reduction in expenses incurred in relation to NRM8499 Phase I clinical trial for the treatment of Alzheimer's disease, which ended in the first quarter 2011, and a reduction in the workforce and other cost reduction initiatives implemented by the Company during the past year.
- General and administrative expenses amounted to $1,278,000 for the three-month period ended March 31, 2012, compared to $1,096,000 for the corresponding period the previous year. Expenses in 2011 are net of a gain on sale lease back of $1,176,000 in relation to the lease of the Company's Laval, Quebec, premises that was terminated in April 2011. Excluding this item, the decrease is mainly due to a reduction in the workforce and other cost reduction initiatives implemented by the Company during the past year.
- Finance income amounted to $734,000 for the three-month period ended March 31, 2012, compared to $6,356,000 for the corresponding period the previous year. The decrease is primarily related to finance income recorded in 2011 in relation to the decrease in the fair value of the embedded conversion option liability on the 2009 Notes in the amount of $6,067,000. The conversion option of the 2009 Notes is considered as an embedded derivative that should be marked to market through income.
- Finance costs amounted to $2,888,000 for the three-month period ended March 31, 2012, compared to $1,896,000 for the corresponding period the previous year. The increase is primarily related to finance costs recorded in 2012 in relation to the increase in the fair value of the embedded conversion option liability on the 2009 Notes in the amount of $667,000. The increase is also due to the increasing accretion expense recorded on the 2009 Notes as they advance to maturity.
Financial Position and Going Concern
As at March 31, 2012, the Company had available cash and cash equivalents of $4,107,000, compared to $5,105,000 as at December 31, 2011. As at March 31, 2012, the Company's cash and cash equivalents on hand and expected sources of funds are considered, in management's view, to be sufficient to meet its committed cash obligations and expected level of expenditures over the next 12 months.
Should the transaction with Pharmascience be completed, whereby Pharmascience will pay a total of $17.25 million to BELLUS Health, it will remove the going concern material uncertainty for the foreseeable future.
Please view the original press release for additional information about the Pharmascience partnership and financing, the VIVIMIND™ license and distribution agreement, AA Amyloidosis, as well as BELLUS Health's forward-looking statement disclosure.