LAVAL, QC, Aug. 12 /CNW/ - BioSyntech, Inc. (TSX: BSY), a biotechnology
company developing biotherapeutic thermogels for regenerative medicine, today
announced its financial and operational results for first quarter of its
fiscal year 2009, ended June 30, 2008.
"Our primary focus this quarter continued to be completing enrolment into
our Canadian-European pivotal trial for BST-CarGel(R). These efforts are
bolstered by recent preliminary evidence of BST-CarGel(R)'s ability to
positively affect the quantity and quality of regenerated cartilage," said
Claude LeDuc, President and CEO of BioSyntech. "In parallel, we are working
closely with our recently expanded Board of Directors to explore various
strategic options, including partnerships and M&A transactions, to ensure the
advancement of our product pipeline. The $12.55 million convertible debenture
financing we completed after the end of the quarter has put the Company in a
much better position to execute both these clinical and strategic objectives."
- Achieved international certification under the stringent and globally
recognized ISO 13485:2003 Medical Devices Quality Management System.
- Completed the BST-DermOn(TM) open pilot study. Positive results were
summarized in a poster presentation at the 3rd Congress of the World
Union of Wound Healing Societies (WUWHS) held in Toronto on June 4-8,
2008. In light of limited cash resources and as part of a streamlined
business plan, the Company previously announced it will suspend
enrolment in the BST-DermOn(TM) clinical trial.
- Completed a bought deal convertible debenture financing for gross
aggregate proceeds of $12,550,000 to the Company.
- Appointed Mr. Michel Lagueux, Dr. Karen Hong, Mr. Eric Linsley and
Mr. Winston Black to the Board of Directors, in accordance with the
provisions of the recently completed financing.
For the three-month period ended June 30, 2008, revenues totalled
$12,368, compared to revenues of $9,796 for the same period in the previous
year. The increase in sales is primarily due to the increase in sales of
Research and development ("R&D") expenses totalled $1,527,023 for the
first quarter of fiscal 2009, compared to $1,419,565 for the comparable
quarter a year ago. The increase in R&D expenses is primarily attributable to
the increase in expenses incurred for BST-CarGel(R) and BST-DermOn(TM)
multi-center clinical trials and the hiring of new employees related to
clinical development activities, partially offset by the decrease in
compensation expenses related to options granted to consultants and employees.
General and administrative expenses totalled $864,725 for the quarter,
compared to $931,080 for the comparable quarter a year ago. The decrease is
mainly due to lower compensation expenses related to options granted to
consultants and employees.
Net loss for the first quarter was $2,341,369 or ($0.02) per share,
compared to a net loss of $2,238,791 or ($0.02) per share for the same period
As of June 30, 2008, the Company had cash, cash equivalents and
short-term investments of $771,562 compared to $2,835,806 as of March 31,
2008. However, the Company received gross proceeds of $12,550,000 from the
financing which closed on July 15 and July 18, 2008.
As part of the implementation of its streamlined business plan, the
Company previously announced its intention to hire a consultant to support the
management team in the execution of the strategic plan. Mr. Michel Lagueux
will join the management team for a six-month period as Executive Chairman as
of August 18, 2008. "I am pleased with the arrival of Mr. Lagueux. His
expertise and experience will greatly contribute to reaching our near-term
objectives," said Claude LeDuc, President and CEO of BioSyntech.
The Company's Management's Discussion and Analysis is available on the
BioSyntech website at www.biosyntech.com and with the Company's regulatory
filings at www.sedar.com.
BioSyntech is a medical device company specialized in the development,
manufacturing and commercialization of advanced biotherapeutic thermogels for
regenerative medicine (tissue repair) and therapeutic delivery. Biosyntech's
platform technology is a family of hydrogels called BST-Gel(R), some of which
are liquid at low temperature and solid at human body temperature. These gels
can be injected or applied to a specific local site and offer beneficial
properties for the local repair of damaged tissue such as cartilage, bone and
chronic wounds and provide the benefit of avoiding invasive surgery. The
Company's lead, late-stage product, BST-CarGel(R) is currently undergoing an
international pivotal trial. For additional information, visit
This press release contains forward-looking statements and information
which are subject to material risks and uncertainties. Such statements are not
historical facts and are based on the current expectations of management. You
are cautioned that such statements are subject to a multitude of risks and
uncertainties that could cause actual results, future circumstances, or events
to differ materially from those projected in the forward-looking information.
These risks include, but are not limited to, those associated with our
capacity to finance our activities, the adequacy, timing, and results of our
clinical trials, the regulatory approval process, competition, securing and
maintaining corporate alliances, market acceptance of the Company's products,
the availability of government and insurance reimbursements for the Company's
products, the strength of intellectual property, the success of research and
development programs, reliance on subcontractors and key personnel, and other
risks and uncertainties detailed from time-to-time in our filings with the
Canadian securities commissions.
Readers should not place undue reliance on the forward-looking
information, given that (i) our actual results could differ materially from a
conclusion, forecast or projection in the forward-looking information, and
(ii) certain material factors or assumptions which were applied in drawing a
conclusion or making a forecast or projection as reflected in the
forward-looking information, could prove to be inaccurate. Additional
information about (i) the material factors that could cause actual results to
differ materially from the conclusion, forecast or projection in the
forward-looking information, and (ii) the material factors or assumptions that
were applied in drawing a conclusion or making a forecast or projection as
reflected in the forward-looking information, is contained in the Company's
annual report and other documents filed from time to time with the Canadian
securities commissions which are available at www.sedar.com. These statements
speak only as of the date they are made, and we assume no obligation to revise
such statements as a result of any event, circumstance or otherwise, except in
accordance with law.
For further information:
For further information: BioSyntech, Inc., Yvonne Kramer Ph.D., Sr.
Director Corporate & Business Development, Tel: (450) 686-2437, ext. 315,
Yvonne.Kramer@biosyntech.com; BioSyntech, Inc., François Michaud, Chief
Financial Officer, Tel: (450) 686-2437, ext. 260,