Sophiris Bio Reports First Quarter Financial Results and Achievements
SAN DIEGO AND VANCOUVER, May 14, 2012 /CNW/ - Sophiris Bio Inc. (Sophiris, TSX: SHS), a developer of innovative products for the treatment of urological diseases, today announced financial results and achievements for the first quarter ended March 31, 2012.
"We are pleased with our progress during the quarter. On March 28th, we announced the completion of dosing of all four cohorts in our Transrectal Study of PRX302 for the treatment of benign prostatic hyperplasia (BPH) and we look forward to releasing our three month safety results from the study in the Third Quarter of this year," said Dr. Lars Ekman, Executive Chairman and President of Sophiris. Dr. Ekman added, "We also strengthened our cash position in the Quarter by completing a follow-on financing with our largest shareholder Warburg Pincus providing meaningful additional resources to drive the continued advancement of PRX302 for the treatment of BPH."
Key Operational and Financial Highlights
- Completion of dosing of all four cohorts of patients in our Transrectal Study of PRX302 for the treatment of BPH.
- Closed an additional CND $8.3 million investment from our largest shareholder, Warburg Pincus pursuant to its rights under the terms of the existing Investment Agreement dated September 28, 2010.
Quarter Ended March 31, 2012
The Company reported a net loss of $4.5 million ($0.03 per share) for the three months ended March 31, 2012, compared to a net loss of $2.2 million ($0.02 per share) for the three months ended March 31, 2011, representing an increase of $2.3 million. The increase in net loss was driven primarily from an increase in total expenses of $1.9 million over the same period as a result of our increased research and development activities associated with our on-going Transrectal Study and PRX302 clinical material manufacturing expenses.
Research and Development Costs
Research and development costs were $3.1 million for the three months ended March 31, 2012, versus $1.3 million for the three months ended March 31, 2011, an increase of $1.8 million. The increase in research and development expenses is primarily attributable to the ongoing Transrectal study of PRX302 and the Chemistry, Manufacturing and Controls (CMC) program for PRX302 clinical material supply.
General and Administrative Costs
General and administrative costs for the three months ended March 31, 2012, were $1.0 million, an increase of $0.1 million from the $0.9 million incurred during the three months ended March 31, 2011. The increase is due primarily due to expenses associated with our recent name change and personnel related costs partially offset by a reduction in legal and consulting expenses.
Interest Income
Interest income remained fairly consistent at $12,000 for the three months ended March 31, 2012 compared to $13,000 for the three months ended March 31, 2011.
Interest Expense
During the three months ended March 31, 2012, the Company incurred interest expense related to the Company's secured promissory note with Oxford Financial LLC of $0.5 million. The secured promissory note was originated during July 2011 as such there is no interest expense related to this loan during the three months ended March 31, 2011.
For complete financial results, please see our filings at www.sedar.com.
About Sophiris
Sophiris is a developer of innovative products for the treatment of urological diseases. Sophiris' lead program, PRX302 (PORxin), achieved positive results from its Phase 2b placebo controlled trial called TRIUMPH, to treat benign prostatic hyperplasia (BPH or enlarged prostate). Sophiris has partnered with Kissei Pharmaceuticals for the development and commercialization of PRX302 in Japan. For more information, please visit www.sophirisbio.com.
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Sophiris' current beliefs as well as assumptions made by and information currently available to Sophiris and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Sophiris in its public securities filings; actual events may differ materially from current expectations. Sophiris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Sophiris Bio Inc. Condensed Consolidated Statement of Operations, Comprehensive Loss and Deficit (Stated in United States Dollars - Unaudited) |
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For the three months ended March 31, | |||||||||
2012 | 2011 | ||||||||
$ | $ | ||||||||
Expenses | |||||||||
Research and development | 3,091,175 | 1,336,369 | |||||||
General and administrative | 1,005,825 | 888,417 | |||||||
4,097,000 | 2,224,786 | ||||||||
Other income (expense) | |||||||||
Interest income | 12,350 | 13,150 | |||||||
Interest expense | (518,603) | - | |||||||
Foreign exchange gain (loss) | 74,243 | (22,830) | |||||||
(432,010) | (9,680) | ||||||||
Net loss for the period | (4,529,010) | (2,234,466) | |||||||
Other comprehensive income | |||||||||
Currency translation differences | 153,943 | 260,973 | |||||||
Total comprehensive loss for the period | (4,375,067) | (1,973,493) | |||||||
Deficit - Beginning of the period | (52,513,353) | (38,302,696) | |||||||
Deficit - End of the period | (57,042,363) | (40,537,162) | |||||||
Basic and diluted loss per share | (0.03) | (0.02) | |||||||
Weighted average number of outstanding shares- | |||||||||
Basic and diluted | 143,646,663 | 121,332,748 | |||||||
Sophiris Bio Inc. Condensed Consolidated Statement of Financial Position (Stated in United States Dollars - Unaudited) |
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March 31, | December 31, | |||||||||||||||
2012 | 2011 | |||||||||||||||
$ | $ | |||||||||||||||
Assets | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | 26,906,412 | 23,410,478 | ||||||||||||||
Other receivables | 169,877 | 238,906 | ||||||||||||||
Prepaid expenses | 313,448 | 284,770 | ||||||||||||||
27,389,737 | 23,934,154 | |||||||||||||||
Non-current assets | ||||||||||||||||
Property and equipment | 209,453 | 219,740 | ||||||||||||||
Intangible assets | 272,319 | 316,099 | ||||||||||||||
Other long term assets | 35,753 | 29,495 | ||||||||||||||
Total assets | 27,907,262 | 24,499,488 | ||||||||||||||
Liabilities | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | 2,252,004 | 3,101,548 | ||||||||||||||
Current portion of secured promissory notes | 4,611,307 | 14,456,768 | ||||||||||||||
6,863,311 | 17,558,316 | |||||||||||||||
Long-term portion of secured promissory notes | 10,007,813 | - | ||||||||||||||
Shareholders' equity | ||||||||||||||||
Common shares | 54,490,667 | 48,073,120 | ||||||||||||||
Common share purchase warrants | 7,794,477 | 5,926,762 | ||||||||||||||
Contributed Surplus | 7,620,633 | 7,435,862 | ||||||||||||||
Currency translation differences | (1,827,276) | (1,981,219) | ||||||||||||||
Deficit | (57,042,363) | (52,513,353) | ||||||||||||||
Total shareholders' equity | 11,036,138 | 6,941,172 | ||||||||||||||
Total liabilities and shareholders' equity | 27,907,262 | 24,499,488 | ||||||||||||||
Sophiris Bio Inc. Condensed Consolidated Statement of Cash Flows (Stated in United States Dollars - Unaudited) |
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For the three months ended March 31, | |||||||||||
2012 | 2011 | ||||||||||
$ | $ | ||||||||||
Cash flows used in operating activities | |||||||||||
Net loss for the period | (4,529,010) | (2,234,466) | |||||||||
Items not affecting cash: | |||||||||||
Stock-based compensation | 184,771 | 386,585 | |||||||||
Accretion expense | 162,349 | - | |||||||||
Depreciation of property and equipment | 19,701 | 4,238 | |||||||||
Amortization of intangible assets | 49,777 | 50,563 | |||||||||
Unrealized foreign exchange loss | 456,449 | 341,636 | |||||||||
Interest expense | 356,254 | - | |||||||||
Interest income | (12,350) | (13,150) | |||||||||
Change in non-cash working capital: | |||||||||||
Other receivables | 73,41 | 115,753 | |||||||||
Prepaid expenses | (28,474) | (11,653) | |||||||||
Other long-term assets | (6,118) | - | |||||||||
Accounts payable and accrued liabilities | (1,016,236) | 145,324 | |||||||||
Net cash flows used in operating activities | (4,289,468) | (1,215,170) | |||||||||
Cash flows used in investing activities | |||||||||||
Interest received | 12,350 | 13,150 | |||||||||
Purchase of property and equipment | (9,389) | (6,070) | |||||||||
Net cash from investing activities | 2,961 | 7,080 | |||||||||
Cash flows from financing activities | |||||||||||
Issuance of common shares from private placement | |||||||||||
- net of issurance costs paid | 8,343,738 | - | |||||||||
Issuance of common shares on exercise of warrants | - | 14,954 | |||||||||
Interest paid | (356,254) | - | |||||||||
Net cash from financing activities | 7,987,484 | 14,954 | |||||||||
Effect of exchange rate changes on cash | |||||||||||
and cash equivalents | (205,043) | (64,793) | |||||||||
Net increase (decrease) in cash and cash equivalents | 3,495,934 | (1,257,929) | |||||||||
Cash and cash equivalents - Beginning of the period | 23,410,478 | 12,381,237 | |||||||||
Cash and cash equivalents - End of the period | 26,906,412 | 11,123,308 | |||||||||
For further information:
Lauren Glaser
Investor Relations
The Trout Group
646-378-2972
[email protected]
James Beesley
Investor Relations
Sequoia Partners
778-389-7715
[email protected]
Michael Moore
Investor Relations
Equicom Group
619-467-7067
[email protected]
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