BioSyntech announces third quarter 2008 financial results



    LAVAL, QC, Feb. 13 /CNW/ - BioSyntech, Inc. ("BioSyntech" or "the
Company") (TSX: BSY), a biotechnology company developing biotherapeutic
thermogels for regenerative medicine, today announced its financial results
for the three and nine-month periods ended December 31, 2007.

    
    Third Quarter Highlights:

    -   Completed 6 months follow-up for BST-CarGel(R) US pilot study

    -   Initiated open clinical study to explore additional wound healing
        indications for BST-DermOn(TM)

    -   Received 2007 Innovation Award in the "Partnership" category by the
        Association de la Recherche Industrielle du Quebec (ADRIQ) for a
        successful partnership with the Ecole Polytechnique de Montréal
    

    "During the third quarter, we further accelerated the enrollment into our
BST-CarGel(R) pivotal trial with the addition of new clinical sites that are
now actively enrolling," said Claude Leduc, President and CEO of BioSyntech.
"Patient enrolment now stands at 50 percent, and is anticipated to ramp-up
during the following quarters for a 2008 completion. In addition, follow-up
data from a 20 patient subset was collected and is currently being analyzed
for submission as a pilot study to the U.S. FDA. These data will also bolster
ongoing business development discussions for licensing of BST-CarGel(R). On
the corporate front, we are currently pursuing strategies to strengthen our
financial position during our advancement towards commercialization of
BST-CarGel(R) and BST-DermOn(TM)."

    Financial Review

    For the three-month period ended December 31, 2007, revenues totalled
$21,193, compared to revenues of $151,896 for the same period in the previous
year. For the nine-month period ended December 31, 2007, revenues totaled
$125,357 compared to revenues of $166,095 for the same period a year ago. The
decrease in revenues for the three and nine-month periods ended December
31, 2007, is mainly due to a third quarter decrease in sales of the Mach-1(TM)
testing system, one of our instrumentation products.
    Research and development ("R&D") expenses totalled $1,568,786 for the
third quarter of 2008, compared to R&D expenses of $1,403,768 for the
comparable quarter a year ago. R&D expenses amounted to $4,404,126 for the
nine-month period ended December 31, 2007, compared to $3,358,966 for the same
period last year. The increase in R&D expenses for the three and nine-month
periods ended December 31, 2007, 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.
    Net loss for the third quarter of 2008, was $2,338,932 or ($0.02) per
share, compared to a net loss of $2,178,495 or ($0.02) per share for the same
period last year. Net loss for the first nine months of 2008 was $6,821,392 or
($0.07) per share, compared to a net loss of $5,640,712 or ($0.06) per share
in the same period of 2007.
    As at December 31, 2007, the Company had cash, cash equivalents and
short-term investments of $5,421,299, compared to $11,925,979 as at March
31, 2007. This decrease reflects the use of funds for operating and investment
activities.
    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.

    About BioSyntech

    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), 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 two lead,
late-stage products, BST-CarGel(R) and BST-DermOn(TM), are currently
undergoing Canadian and European pivotal trials. For additional information,
visit www.biosyntech.com.

    Forward-Looking Statements

    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.

    %SEDAR: 00020217EF




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,
Francois.Michaud@biosyntech.com; The Equicom Group: Arianna Vanin, Investor
Relations, Tel: (514) 844-4680, avanin@equicomgroup.com

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BIOSYNTECH, INC.

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