MONTREAL, April 30 /CNW Telbec/ - Biophage Pharma Inc. (TSX: BUG.V), a
high-potential, revenue-driven biotechnology company focused on the
development of an integrated approach for the prevention and control of
bacterial infections, reported today its financial results for its first
quarter ended February 28, 2007.
Overview of operations
Biophage reached an important milestone in its Biosensors Division in the
first quarter of 2007 in the development of its compact PDS96(R) Biosensor.
The Corporation is now conducting extensive in-house performance testing and
validation of this alpha prototype. Biophage also furthered the development of
its four new biosensors: The BacTrapping(R) system, the micro-fluidics system,
the "FastBac" biosensor and the e.sensor. In this context, Biophage signed an
important collaborative agreement aimed at combining a2sp's Magic Tag(R)
immobilization technology with Biophage's biosensor platform. Magic Tag(R)
uses linkers, which are activated by daylight, for the immobilization of
biomolecules (including phages) onto different surfaces such as magnetic
beads, biosensors and micro-array surfaces. Biophage and a2sp also jointly
filed a patent application on February 16, 2007, relating to "methods for
immobilizing viruses (phages) using photo-reactive linkers".
In the Therapeutics Division, Biophage concluded initial sales of its
LISTEX(TM) product to an important cheese producer in the U.S. Securing this
sale marked the beginning of a business relationship with our first client who
intends to develop and use phage therapy as a biological solution to control
potential Listeria monocytogenes (Listeria) contamination in cheese. On
December 4, 2006, Biophage signed an MOU (memorandum of understanding) with
EBI Food Safety (La Hague, Netherlands) for the sale and distribution of
LISTEX(TM) in North America. LISTEX(TM) is the first bacteriophage product to
receive FDA GRAS (Generally Recognized as Safe) recognition for the control of
Listeria contamination in cheese.
In ImmunotoxLabs, Biophage hired Dr. Michel Heyne as director of its
Beryllium Reference Lab to meet the increasing demand for Beryllium and
MELISA(R) testing. With his vast experience in laboratory testing, this
eminent hematologist will help expedite the accreditation process of
Biophage's Beryllium laboratory by the Quebec National Institute of Public
Contract revenues for the three months ended February 28, 2007 amounted
to $107,551 compared with $195,944 in the same three month period in fiscal
2006. The decrease in substantially attributable to the completion of
significant projects with important clients, although partially offset by an
increase in revenues generated from Beryllium testing. Other income for the
first quarter in 2007 reached $824 compared to $601 in the same period in
Research and development costs for the three months ended February 28,
2007 (before tax credits) amounted to $135,006, representing a $61,303, or 83%
increase over the $73,703 recorded in the same interim period in the preceding
fiscal year. The increase is substantially attributable to the hiring of
additional staff affected to R&D, including a director for the Corporation's
Biosensors Division, commensurate with Biophage's overall accelerated efforts
in developing the phage therapy segment. Research and development tax credits
for the first quarter amounted to $35,000, which compares to $20,000 for the
three month period ended February 28, 2006, representing 26% and 27% of
related costs, respectively.
Costs of contracts for the three months ended February 28, 2007 amounted
to $117,410, relatively unchanged from the $118,359 incurred during the same
period in the preceding fiscal year. The slight decrease in the costs of
contracts results from lower subcontracting and laboratory supply costs, which
was almost entirely offset by an increase in salaries from the hiring of
additional staff between the interim periods.
Biophage's net loss for the three month period ended February 28, 2007
amounted to $261,287 ($0.01 per share) compared to a net loss of $157,821
($0.00 per share) for the corresponding three month period in the preceding
Liquidity and Financial Resources
As at February 28, 2007 Biophage had cash and cash equivalents of
$426,733 compared to $214,344 at November 30, 2006. The increase in cash and
cash equivalents from November 30, 2006 levels is substantially attributable
to the private placements completed during the interim period, although
partially offset by cash used in operating activities (after changes in
non-cash working capital items).
During December 2006 and February 2007, the Corporation issued
4,045,458 units through private placement. Each unit is made up of one common
share and one common share purchase warrant, whereby each common share
purchase warrant is exercisable for a period of two years at an exercise price
of $0.17 per common share. The 4,045,458 shares were issued for a total cash
consideration of $525,910.
More detailed information regarding the foregoing can be found in the
interim unaudited consolidated financial statements and related management
discussion and analysis which have been filed today on SEDAR at www.sedar.com.
Granting of Stock Options
On April 27, 2007, the Corporation's Board of Directors granted stock
options to purchase an aggregate 1,114,000 common shares of the Corporation at
an exercise price of $0.12 per share to certain directors, employees and
consultants of the Corporation, all of which vest immediately other than
150,000 options that will vest on the first anniversary of the grant and
150,000 options that will vest on the second anniversary of the grant. The
grant of such stock options is made in accordance with the stock option plan
of the Corporation. The granted options will expire on April 27, 2012.
About Biophage Pharma Inc.
Biophage Pharma is a high potential, revenue-driven Canadian
biotechnology company focused on the development of innovative phage-based
products and technologies for the detection, prevention and control of
bacterial infections. Founded in 1995, Biophage operates three divisions:
(1) The Biosensors division for the development and commercialization of
Biosensors, more particularly a portable PDS96(R) Biosensor which is now in
the pre-commercialization stage; (2) The phage therapy division for the
prevention and control of bacterial contaminations in the medical, veterinary
and environment fields; (3) The Immunotox Labs division, which provides
services in Immunogenicity and Immunotoxicity, Beryllium sensitivity testing
and MELISA(R) testing for the detection of sensitization to more than
200 different allergens including metals, penicillin, gluten and pollens.
(www.biophagepharma.net; www.immunotoxlabs.com )
Certain statements contained in this news release constitute
forward-looking information within the meaning of securities laws. Implicit in
this information, particularly in respect of future operating results and
economic performance of the Corporation are assumptions regarding projected
revenue and expenses. These assumptions, although considered reasonable by the
Corporation at the time of preparation, may prove to be incorrect. Readers are
cautioned that actual future operating results and economic performance of the
Corporation are subject to a number of risks and uncertainties, including
general economic, market and business conditions and could differ materially
from what is currently expected.
Forward-looking information contained in this report is based on
management's current estimates, expectations and projections, which management
believes are reasonable as of the current date. You should not place undue
importance on forward-looking information and should not rely upon this
information as of any other date. While we may elect to, we are under no
obligation and do not undertake to update this information at any particular
time unless required by applicable securities law.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Biophage Pharma Inc: Rosemonde Mandeville,
M.B., Ch.B., PhD, President and Chief Executive Officer, (514) 496-1488,
email@example.com; Renmark Financial Communications
Inc.: Christine Stewart, firstname.lastname@example.org; Tina Cameron,
email@example.com; (514) 939-3989, Fax: (514) 939-3717,