BIOM Biomira Inc. - Common Shares (MM)

EDMONTON, March 8 /PRNewswire-FirstCall/ -- Biomira Inc. (NASDAQ:BIOM) (TSX: BRA) today reported financial results for the year and quarter ended December 31, 2006. All results are in Canadian dollars. Net loss for the year ended December 31, 2006, was $17.8 million or $0.19 per basic and diluted share, compared with $19.0 million, or $0.24 per basic and diluted share in 2005. The decrease in net loss resulted from decreased clinical expenditures as a result of transferring the development program for Stimuvax(R) to Merck KGaA of Darmstadt Germany ("Merck") effective March 1, 2006, partly offset by increased general and administrative expenses related to changes in accounting for stock-based compensation and charges due to reduction in workforce. Revenue from operations for the year ended December 31, 2006 was $4.5 million, compared with $4.4 million in the prior year. Expenses for the year ended December 31, 2006, were $24.1 million, compared with $24.5 million for the prior year. Research and development expenses decreased from $16.9 million in 2005 to $13.8 million in 2006, primarily as a result of reduced clinical expenditures with the transfer of responsibility for the clinical development of Stimuvax to Merck. This was offset by an increase in G&A expenses from $6.3 million in 2005 to $8.7 million in 2006. This increase was primarily attributable to changes in the expensing of stock options with the adoption of a new accounting policy in 2006, a non-cash expense, and with costs related to workforce reductions and employee exiting. Net loss for the quarter ended December 31, 2006 was $4.3 million or $0.04 per basic and diluted share, compared with $4.4 million or $0.05 per basic and diluted share for the comparable period in 2005. Revenue from operations was $1.3 million, compared with $1.1 million for the comparable period in 2005. Expenses for the quarter were $6.7 million, compared with $6.0 million for the comparable period in 2005. As of December 31, 2006, Biomira's cash, cash equivalents and short term investments were $33.0 million, compared to $21.4 million at the end of 2005, an increase of $11.6 million, or 54%. Major contributors to the net change included $31.9 million in net financing proceeds, offset by $15.6 million used in operations and $4.3 million used in the acquisition of ProlX Pharmaceuticals Corporation ("ProlX"). Financial Guidance Biomira believes the following financial guidance to be correct as of the date provided. We are providing this guidance as a convenience to investors, and we assume no obligation to update it. For 2007, we expect our research and development expenses to increase significantly, primarily as a result of increased manufacturing and process development activities for Stimuvax for the Phase 3 trial being conducted by Merck, and of increased development activity for the small molecules drugs we acquired with the acquisition of ProlX. We expect these expenses to be offset by increased funding from Merck, which is required to purchase Stimuvax from Biomira, by milestone payments we anticipate receiving from Merck, one for the enrollment of the first patient in the Phase 3 trial and another for the signing of the final amended collaboration and supply agreements, and by grant funding available to our ProlX subsidiary. The net result is that we anticipate that our cash used in operations for 2007 will be between $14 million and $16 million dollars. As a result, we believe that Biomira currently has sufficient cash resources to last into the second half of 2008. Business Update Key Achievements in 2006 included: - Completing a Special Protocol Agreement (SPA) with the U.S. Food and Drug Administration related to the Phase 3 trial of Stimuvax in patients with non-small cell lung cancer. The SPA concerns the design of the Phase 3 trial and outlines definitive clinical objectives and data analyses considered necessary to support regulatory approval of Stimuvax. - Transferring the U.S. IND for Stimuvax to Merck, which enabled Merck to initiate the Phase 3 trial. - Appointing Robert L. Kirkman M.D. as President and Chief Executive Officer and D. Lynn Kirkpatrick, Ph.D. as Chief Scientific Officer. - Acquiring ProlX Pharmaceuticals Corporation. The acquisition brought in a portfolio of small molecule compounds with significant potential in the treatment of various cancers. Diversification of Biomira's pipeline through the acquisition is expected to increase the Company's opportunities for clinical and commercial success. - Raising $31.9 million in net financing proceeds. These financial resources are expected to support aggressive advancement of multiple product development programs. Key Achievements to date in 2007 include: - Initiation of the Phase 3 trial of Stimuvax in patients with non- small cell lung cancer by Merck. Enrollment of the first patient in this trial, which occurred in February 2007, triggered a milestone payment to Biomira of U.S. $2.5 million, before associated payments to third parties of approximately U.S. $0.5 million. In addition, Biomira has the responsibility for the manufacture of Stimuvax and has been successfully manufacturing for the Phase 3 trial. - Initiation of the Phase 2 trial of the thioredoxin inhibitor PX-12 in patients with advanced pancreatic cancer resistant to gemcitabine or a gemcitabine-containing regimen. Conference Call and Webcast Biomira's management will discuss the Company's fourth quarter and full year 2006 financial results as well as general business updates during a conference call beginning at 1:30 p.m. PT/ 4:30 p.m. ET today, Thursday, March 8, 2007. To listen to a webcast of the discussion, visit http://www.biomira.com/. About Biomira Biomira is a biotechnology company specializing in the development of innovative therapeutic products for the treatment of cancer. Biomira's goal is to develop and commercialize novel synthetic vaccines and targeted small molecules that have the potential to improve the lives and outcomes of cancer patients. Forward-Looking Statements In order to provide our investors with an understanding of our current results and future prospects, this release may contain statements that are forward looking. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will," "intends," "potential," "possible" and similar expressions are intended to identify forward-looking statements. These forward-looking statements represent Biomira's intentions, plans, expectations and beliefs with respect to research and development expenses, the use and adequacy of cash resources, the successful integration of ProlX, the timing, duration and results of clinical trials, the timing and results of regulatory reviews, the safety and efficacy of our products, the possibility of future payments from Merck and the availability of grant funding for our ProlX subsidiary and are based on our experience and our assessment of historical and future trends and the application of key assumptions relating to future events and circumstances. Forward-looking statements involve risks and uncertainties related to our business and the general economic environment, many beyond our control. These risks, uncertainties and other factors could cause our actual results to differ materially from those projected in forward-looking statements, including the risks associated with the adequacy of financing and reserves on hand; currency exchange rate fluctuations; changes in general accounting policies, general economic factors, achievement of the results we anticipate from our clinical trials with our products and our ability to adequately obtain and protect our intellectual property rights. Although we believe that the forward-looking statements contained herein are reasonable, we can give no assurance that our expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. For a detailed description of our risks and uncertainties, you are encouraged to review the official corporate documents filed with the securities regulators in Canada on SEDAR and the United States on U.S. EDGAR. Biomira does not undertake any obligation to publicly update its forward-looking statements based on events or circumstances after the date hereof. Additional Information Additional information relating to Biomira, including a copy of our Annual Information Form and Proxy Circular filed annually at the end of March, can be found on SEDAR at http://www.sedar.com/ and U.S. EDGAR at http://www.sec.gov/. Biomira Inc. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) ------------------------------------------------------------------------- Three Months Ended Year Ended December 31 December 31 ------------------------------------------------------------------------- 2006 2005 2006 2005 ------------------------------------------------------------------------- REVENUE Contract research and development $ 1,170 $ 977 $ 4,172 $ 3,842 Licensing revenue from collaborative agreements 50 52 207 207 Licensing, royalties, and other revenue 43 86 135 328 ------------------------------------------------------------------------- 1,263 1,115 4,514 4,377 ------------------------------------------------------------------------- EXPENSES Research and development 3,287 4,455 13,838 16,907 General and administrative 2,615 1,441 8,661 6,295 Marketing and business development 153 12 666 965 Amortization 602 106 897 376 ------------------------------------------------------------------------- 6,657 6,014 24,062 24,543 ------------------------------------------------------------------------- OPERATING LOSS (5,394) (4,899) (19,548) (20,166) Investment and other income 424 226 1,039 795 Interest expense (2) (1) (11) (2) ------------------------------------------------------------------------- LOSS BEFORE INCOME TAXES (4,972) (4,674) (18,520) (19,373) ------------------------------------------------------------------------- INCOME TAX RECOVERY: Current 524 286 524 348 Future 174 - 174 - ------------------------------------------------------------------------- 698 286 698 348 ------------------------------------------------------------------------- NET LOSS $(4,274) $(4,388) $(17,822) $(19,025) ------------------------------------------------------------------------- ------------------------------------------------------------------------- BASIC AND DILUTED LOSS PER SHARE $(0.04) $(0.05) $(0.19) $(0.24) ------------------------------------------------------------------------- ------------------------------------------------------------------------- WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 102,800 78,660 91,900 78,660 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Biomira Inc. Consolidated Balance Sheets Data (in thousands) (unaudited) ------------------------------------------------------------------------- December 31, December 31, 2006 2005 ------------------------------------------------------------------------- Cash position $33,037 $21,415 ------------------------------------------------------------------------- Total assets $79,099 $24,263 ------------------------------------------------------------------------- Total long-term liabilities $13,378 $1,147 ------------------------------------------------------------------------- Shareholders' equity $61,417 $20,063 ------------------------------------------------------------------------- Common shares outstanding 116,915 78,817 ------------------------------------------------------------------------- DATASOURCE: Biomira Inc. CONTACT: Investor and Media Relations Contact: Stephanie Seiler, Ph.D., Gemini BioProjects LLC, (206) 713-0124,

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