YM BioSciences Reports Operational and Financial Results for the
Second Quarter of Fiscal 2013
MISSISSAUGA, ON,
Feb. 7, 2013 /CNW/ - YM
BioSciences Inc. (NYSE MKT: YMI) (TSX: YM), today reported
operational and financial results for the second quarter of fiscal
2013, ended December 31, 2012.
During the quarter, YM announced a plan of
arrangement (the "Arrangement") involving the Company, Gilead
Sciences, Inc. ("Gilead") and 3268218 Nova Scotia Limited, a
wholly-owned subsidiary of Gilead (the "Purchaser").
Under the Arrangement, the Purchaser will acquire all of the issued
and outstanding common shares ("Common Shares") of the Company for
cash consideration of U.S.$2.95 per
Common Share. In addition, holders of warrants and options will
each receive a cash payment equal to the difference between
U.S.$2.95 and the exercise price of
such warrants or options. The Supreme Court of Nova Scotia has issued a final order approving
the Arrangement and assuming all other conditions precedent are
satisfied or waived, it is anticipated that the Arrangement will
become effective on February 8, 2013.
Summary Financial Results (CDN
dollars)
The interim consolidated financial statements
and comparative information for the second quarter of fiscal 2013
have been prepared in accordance with International Financial
Reporting Standards ("IFRS").
Revenue for the second quarter of fiscal 2013
ending December 31, 2012 was
$3.9 million compared to $0.4 million for the second quarter of fiscal
2012 ending December 31, 2011.
Revenue for the first six months of fiscal 2013 was $4.2 million compared to $0.6 million for the first six months of fiscal
2012. The increase was due to the sale of nimotuzumab licenses and
subsequent recognition of all remaining deferred revenue relating
to nimotuzumab licenses in December
2012.
Net finance costs were $5.8 million for the second quarter of fiscal
2013 compared to net finance income of $1.5
million for the second quarter of fiscal 2012. Net finance
costs were $5.5 million for the first
six months of fiscal 2013 compared to net finance income of
$9.0 million for the first six months
of fiscal 2012. The changes in net finance income are primarily
attributable to changes in the fair value adjustment for USD
warrants. Under IFRS, warrants denominated in a different currency
than the Company's functional currency must be classified as a
financial liability and measured at fair value, with changes
reflected in profit or loss. For the second quarter of fiscal 2013,
the Company realized a loss of $6.6
million on the revaluation of warrants, compared to a gain
of $1.9 million for the second
quarter of fiscal 2012. For the first six months of fiscal 2013,
the Company realized a loss of $5.0
million on the revaluation of warrants, compared to a gain
of $7.3 million for the first six
months of fiscal 2012.
Licensing and product development expenses were
$6.1 million for the second quarter
of fiscal 2013 compared with $7.3
million for the second quarter of fiscal 2012. Licensing and
product development expenses were $13.3
million for the first six months of fiscal 2013 compared
with $13.7 million for the first six
months of fiscal 2012. Licensing and product development expenses
are primarily associated with the clinical trials for CYT387.
General and administrative expenses were
$3.3 million for the second quarter
of fiscal 2013 compared to $1.2
million for the second quarter of fiscal 2012. General and
administrative expenses were $5.3
million for the first six months of fiscal 2013 compared to
$3.3 million for the first six months
of fiscal 2012. The increases in both the three and six months
ending December 31, 2013, are due to
the additional legal and other costs relating to CYT387 and the
Acquisition Agreement.
Net loss for the second quarter of fiscal 2013
was $11.3 million ($0.07 per share) compared to $6.6 million ($0.06
per share) for the same period last year. Net loss for the first
six months of fiscal 2013 was $20.0
million ($0.13 per share)
compared to $7.5 million
($0.06 per share) for the same period
last year.
As at December 31,
2012 the Company had cash and short-term deposits totaling
$121.2 million and accounts payable
and accrued liabilities totaling $5.3
million compared to $132.5
million and $3.1 million
respectively as at June 30, 2012.
As at December 31,
2012 the Company had 157,967,659 common shares and 7,008,751
warrants outstanding.
About YM BioSciences
YM BioSciences Inc. is a drug development
company primarily focused on advancing CYT387, an orally
administered inhibitor of both the JAK1 and JAK2 kinases, which
have been implicated in a number of hematological and immune cell
disorders including myeloproliferative neoplasms and inflammatory
diseases as well as certain cancers. Positive results have been
reported from a Phase I/II trial of CYT387 in 166 patients with
myelofibrosis.
This press release may contain
forward-looking statements, which reflect YM's current expectation
regarding future events. These forward-looking statements involve
risks and uncertainties that may cause actual results, events or
developments to be materially different from any future results,
events or developments expressed or implied by such forward-looking
statements. Such factors include, but are not limited to, YM's
ability to obtain other approvals in connection with the proposed
arrangement; uncertainties as to the timing of the arrangement; the
satisfaction of the conditions precedent to the completion of the
arrangement; changing market conditions; the successful and timely
completion of clinical studies; the establishment of corporate
alliances; the impact of competitive products and pricing; new
product development; uncertainties related to the regulatory
approval process or the ability to obtain drug product in
sufficient quantity or at standards acceptable to health regulatory
authorities to complete clinical trials or to meet commercial
demand; and other risks detailed from time to time in YM's ongoing
quarterly and annual reporting. Except as required by applicable
securities laws, YM undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
|
YM
BIOSCIENCES INC.
Condensed Consolidated Interim Statements of Financial Position
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
June 30, |
|
|
|
2012 |
|
|
2012 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
83,588,628 |
|
$ |
87,140,020 |
|
Short-term deposits |
|
|
37,628,393 |
|
|
45,310,288 |
|
Accounts receivable |
|
|
342,394 |
|
|
252,884 |
|
Prepaid expenses |
|
|
84,984 |
|
|
257,780 |
|
Total current assets |
|
|
121,644,399 |
|
|
132,960,972 |
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
Property and equipment |
|
|
49,096 |
|
|
62,118 |
|
Intangible assets |
|
|
375,674 |
|
|
2,629,682 |
|
Total non-current assets |
|
|
424,770 |
|
|
2,691,800 |
|
|
|
|
|
|
|
Total assets |
|
$ |
122,069,169 |
|
$ |
135,652,772 |
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,124,770 |
|
$ |
803,421 |
|
Accrued liabilities |
|
|
4,164,545 |
|
|
2,262,972 |
|
Share purchase warrants |
|
|
11,593,961 |
|
|
7,221,040 |
|
Deferred revenue |
|
|
- |
|
|
381,270 |
|
Total current liabilities |
|
|
16,883,276 |
|
|
10,668,703 |
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
Deferred revenue |
|
|
- |
|
|
1,556,853 |
|
Total non-current liabilities |
|
|
- |
|
|
1,556,853 |
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Share capital |
|
|
341,491,581 |
|
|
340,173,078 |
|
Contributed surplus |
|
|
17,015,594 |
|
|
16,712,315 |
|
Deficit |
|
|
(253,321,282) |
|
|
(233,458,177) |
|
Total equity |
|
|
105,185,893 |
|
|
123,427,216 |
|
|
|
|
|
|
|
Subsequent events |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
122,069,169 |
|
$ |
135,652,772 |
Approved by the Board and authorized for issue on February 6, 2013:
Tryon M. Williams, Director
Dr.
Nick Glover, Director
|
YM BIOSCIENCES
INC.
Condensed Consolidated Interim Statements of Loss and Comprehensive
Loss
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited) |
|
|
|
|
|
|
Three months
ended |
|
|
Six months
ended |
|
December 31, |
|
|
December 31, |
|
2012 |
2011 |
|
|
2012 |
2011 |
|
|
|
|
|
Revenue: |
|
|
|
|
|
Out-licensing |
$ |
1,866,563 |
$ |
380,117 |
|
$ |
2,176,708 |
$ 630,845 |
|
Sale of Nimotuzumab licenses |
|
1,989,800 |
|
- |
|
|
1,989,800 |
- |
|
|
|
3,856,363 |
|
380,117 |
|
|
4,166,508 |
630,845 |
|
|
|
|
|
Expenses: |
|
|
|
|
|
Licensing and product development |
|
6,081,713 |
|
7,260,481 |
|
|
13,285,560 |
13,748,328 |
|
General and administrative |
|
3,255,177 |
|
1,154,883 |
|
|
5,276,876 |
3,315,031 |
|
|
9,336,890 |
|
8,415,364 |
|
|
18,562,436 |
17,063,359 |
|
|
|
|
|
|
|
|
|
Loss before the undernoted |
|
(5,480,527) |
|
(8,035,247) |
|
|
(14,395,928) |
(16,432,514) |
|
|
|
|
|
|
|
|
|
Finance income |
|
784,671 |
|
2,058,174 |
|
|
567,365 |
8,980,046 |
Finance costs |
|
(6,617,681) |
|
(580,705) |
|
|
(6,034,542) |
- |
|
|
|
|
|
|
|
|
|
Net loss and comprehensive loss for
the period |
$ |
(11,313,537) |
$ |
(6,557,778) |
|
$ |
(19,863,105) |
$(7,452,468) |
|
|
|
|
|
|
|
|
|
Basic and diluted loss per common share |
$ |
(0.07) |
$ |
(0.06) |
|
$ |
(0.13) |
$ (0.06) |
|
|
|
|
|
|
|
|
|
|
YM BIOSCIENCES
INC.
Condensed Consolidated Interim Statements of Changes in Equity
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
Contributed |
|
|
|
|
|
Number |
|
Amount |
|
surplus |
|
Deficit |
|
Total |
|
|
|
|
|
|
|
|
|
|
Balance, June 30, 2012 |
157,546,793 |
|
$ |
340,173,078 |
|
$ 16,712,315 |
|
$ |
(233,458,177) |
|
$ |
123,427,216 |
Capital
transactions |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period |
- |
|
|
- |
|
- |
|
|
(19,863,105) |
|
|
(19,863,105) |
Transactions affecting owners of the |
|
|
|
|
|
|
|
|
|
|
|
|
|
Company, recognized directly in
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
- |
|
|
- |
|
369,479 |
|
|
- |
|
|
369,479 |
|
|
Shares issued on exerciseof options |
63,199 |
|
|
163,170 |
|
(66,200) |
|
|
- |
|
|
96,970 |
|
|
Shares issued on exercise
of warrants |
357,667 |
|
|
564,270 |
|
- |
|
|
- |
|
|
564,270 |
|
|
Fair value of warrants exercised |
- |
|
|
591,063 |
|
|
|
|
- |
|
|
591,063 |
Total transactions affecting owners
of the Company |
420,866 |
|
|
1,318,503 |
|
303,279 |
|
|
- |
|
|
1,621,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2012 |
157,967,659 |
|
$ |
341,491,581 |
$ |
17,015,594 |
|
$ |
(253,321,282) |
|
$ |
105,185,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
Contributed |
|
|
|
|
|
|
|
Number |
|
Amount |
|
surplus |
|
Deficit |
|
Total |
|
|
|
|
|
|
|
|
|
|
Balance, June 30, 2011 |
116,681,948 |
|
$ |
264,548,643 |
$ |
15,144,062 |
|
$ |
(213,141,438) |
|
$ |
66,551,267 |
Capital
transactions |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period |
- |
|
|
- |
|
- |
|
|
(7,452,468) |
|
|
(7,452,468) |
Transactions affecting owners of the |
|
|
|
|
|
|
|
|
|
|
|
|
|
Company, recognized
directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
- |
|
|
- |
|
1,507,684 |
|
|
- |
|
|
1,507,684 |
|
|
Shares issued on exercise
of options |
29,500 |
|
|
38,008 |
|
(15,558) |
|
|
- |
|
|
22,450 |
Total transactions affecting owners
of the Company |
29,500 |
|
|
38,008 |
|
1,492,126 |
|
|
- |
|
|
1,530,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2011 |
116,711,448 |
|
$ |
264,586,651 |
$ |
16,636,188 |
|
$ |
(220,593,906) |
|
$ |
60,628,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YM
BIOSCIENCES INC.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited) |
|
|
Six months
ended
December
31, |
|
2012 |
|
2011 |
Cash provided by (used in): |
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
Net loss for the period |
$ |
(19,863,105) |
|
$ |
(7,452,468) |
|
Items not involving cash: |
|
|
|
|
|
|
|
Depreciation of
property and equipment |
|
21,095 |
|
|
33,134 |
|
|
Amortization of
intangible assets |
|
2,254,008 |
|
|
2,254,008 |
|
|
Interest
earned |
|
(567,365) |
|
|
(309,168) |
|
|
Gain on disposal
of property and equipment |
|
(10,636) |
|
|
- |
|
|
Unrealized
(gain)loss on cash and cash equivalents |
|
(233,885) |
|
|
(1,406,658) |
|
|
Share-based
compensation |
|
369,479 |
|
|
1,507,684 |
|
|
Change in fair
value of share purchase warrants |
|
4,963,984 |
|
|
(7,264,221) |
|
Changes in non-cash working capital
balances: |
|
|
|
|
|
|
|
Short-term
deposits |
|
(275,927) |
|
|
(305,277) |
|
|
Accounts
receivable |
|
(89,510) |
|
|
(78,535) |
|
|
Prepaid
expenses |
|
172,796 |
|
|
240,064 |
|
|
Accounts
payable |
|
321,349 |
|
|
(181,892) |
|
|
Accrued
liabilities |
|
1,901,573 |
|
|
(482,473) |
|
|
Deferred revenue |
|
(1,938,123) |
|
|
(297,036) |
|
Net cash used in operating
activities |
|
(12,974,267) |
|
|
(13,742,838) |
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
Proceeds from sale of short-term
deposits |
|
35,457,822 |
|
|
35,806,437 |
|
Purchase of short-term
deposits |
|
(27,500,000) |
|
|
(34,300,000) |
|
Interest earned |
|
567,365 |
|
|
309,168 |
|
Additions to property and
equipment |
|
(18,537) |
|
|
(10,220) |
|
Proceeds
from sale of property and equipment |
|
21,100 |
|
|
- |
|
Net cash provided by investing
activities |
|
8,527,750 |
|
|
1,805,385 |
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
Issuance of common shares on
exercise of options |
|
96,970 |
|
|
22,450 |
|
Issuance
of common shares on exercise of warrants |
|
564,270 |
|
|
- |
|
Net cash provided by financing
activities |
|
661,240 |
|
|
22,450 |
|
|
|
|
|
|
Decrease in cash and cash
equivalents |
|
(3,785,277) |
|
|
(11,915,003) |
|
|
|
|
|
|
Impact of foreign exchange rates on
cash |
|
233,885 |
|
|
1,406,658 |
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period |
|
87,140,020 |
|
|
32,046,630 |
|
|
|
|
|
|
Cash and cash equivalents, end of
period |
$ |
83,588,628 |
|
$ |
21,538,285 |
|
|
|
|
|
|
SOURCE YM BioSciences Inc.