LAVAL, QC, Feb. 13 /CNW/ - BioSyntech, Inc. (TSX: BSY), a biotechnology
company developing biotherapeutic thermogels for regenerative medicine, today
announced its financial and operational results for the third quarter of
fiscal 2009, ended December 31, 2008.
"We achieved a major milestone subsequent to the end of the quarter,
completing the enrolment of eighty patients into the pivotal trial for our
lead product, BST-CarGel(R)," said Mr. Michel Lagueux, Chairman of the Board
of Directors. "We will continue to manage our resources conservatively as we
prepare for the results from this pivotal trial, which could lead to marketing
approval for BST-CarGel(R) in Canada and Europe. In parallel, we continue to
advance our US strategy for BST-CarGel(R) and the pursuit of strategic
For the three-month period ended December 31, 2008, revenues were $3,198,
compared to revenues of $21,193 for the same period in the previous year. For
the nine-month period ended December 31, 2008, the Company had revenues of
$17,065 compared to revenues of $125,357 for the nine-month period ended
December 31, 2007. The Company has had limited revenues to date generated
almost entirely by sales of purified chitosan, called Ultrasan.
Research and development ("R&D") expenses totalled $1,646,645 for the
third quarter of fiscal 2009, compared to $1,568,786 for the comparable
quarter a year ago. Research and development expenses were $4,631,213 for the
nine-month period ended December 31, 2008 compared to $4,404,126 for the same
period a year ago. The increases were mainly due to higher research contracts
only partly offset by lower compensation costs.
General and administrative expenses totalled $548,633 for the third
quarter, compared to $917,521 for the comparable quarter a year ago. General
and administrative expenses were $2,243,719 for the nine-month period ended
December 31, 2008 compared to $2,766,658 for the same period a year ago. The
decreases were mainly due to lower remuneration as a result of the
restructuring, lower compensation expenses related to options granted, lower
marketing and investor relations expenses, only partly offset by higher
The accretion in the carrying value of the convertible debenture and
interest was respectively of $1,029,436 and $1,819,255 for the quarter and
nine-month periods ended December 31, 2008 compared to nil for the three-month
and nine-month periods ended December 31, 2007.
The restructuring costs were $1,356,358 for the quarter and nine-month
periods ended December 31, 2008 compared to nil for the three-month and
nine-month periods ended December 31, 2007. The restructuring costs are mainly
comprised of severances as dictated by contractual agreements and termination
fees in accordance with Quebec common practice.
Net loss for the third quarter was $4,513,255 or ($0.05) per share,
compared to a net loss of $2,338,932 or ($0.02) per share for the same period
last year. The loss for the nine-month period ended December 31, 2008 amounted
to $9,868,299 or ($0.10) per share compared $6,821,392 or ($0.07) per share
for the nine-month period ended December 31, 2007.
As at December 31, 2008, the Company had cash, cash equivalents and
short-term investments of $6,293,849 compared to $2,835,806 as at March 31,
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. For
additional information, visit www.biosyntech.com.
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: James Smith, The Equicom Group, (416) 815-0700