YM BioSciences reports third quarter 2004 results MISSISSAUGA, ON,
May 27 /PRNewswire-FirstCall/ -- YM BioSciences Inc. (TSX:YM,
AIM:YMBA), the cancer drug development company with an
advanced-stage portfolio, today reported operational and financial
results for the third quarter of fiscal 2004, ended March 31, 2004.
Highlights: - The Company initiated a 65-center international 700
patient registration trial for its lead drug, tesmilifene. -
Positive results from the first tesmilifene Phase III trial
performed by the National Cancer Institute of Canada were published
in the peer-reviewed Journal of Clinical Oncology. - The
independent industry analyst group Frost & Sullivan declared YM
BioSciences the 2004 Breast Cancer Therapies Entrepreneurial
Company of the Year. - Subsequent to the end of the quarter,
positive Phase II clinical trial results for TheraCIM hR3, YM's
EGFr monoclonal antibody, were also published in the Journal of
Clinical Oncology. "During fiscal third quarter, we achieved a
major milestone for the Company, initiating on schedule the pivotal
Phase III trial for our lead drug, tesmilifene," said David Allan,
Chairman and CEO. "Our second anti-cancer drug, TheraCIM hR3, has
also received further validation and is poised to commence trials
designed to lead to approval." Net loss for the quarter ended March
31, 2004 was $2,106,982 and for the first nine months of this year
was $4,072,318, compared to $2,056,653 and $6,229,931 respectively
for the same periods last year. Total expenditures for the quarter
were $2,981,550 compared to $1,417,857 for the same period last
year. Total expenditures for the first nine months were $4,965,398
compared to $4,591,227 for the same period last year. General and
Administrative expenses for the quarter were $736,827 and for the
nine months were $1,831,252, up from $474,824 and $1,398,527
respectively for the prior year, principally due to increased
travel and expenses relating to the recent financing. Licensing and
Product Development expenses were $2,244,723 for the quarter and
$3,134,146 for the first nine months compared to $943,033 for the
third quarter last year and $3,192,700 for the first nine months of
last year. Last year's expenses included manufacturing of
tesmilifene which was not repeated this year. This year's expenses
included $1,817,000 for the tesmilifene Phase III clinical trial in
metastatic breast cancer that commenced this quarter. As at March
31, 2004 the Company had cash and short-term deposits totaling
$22,410,170 and payables of $1,460,589 compared to $7.7 million at
June 30, 2003. On December 15, 2003 the Company completed the sale
of 10,895,658 special warrants for total gross proceeds of
$19,067,402 (net $17,047,001). On February 17, 2004 the Company
cleared its prospectus with the Ontario Securities Commission and
issued 10,895,658 common shares and 5,447,829 share purchase
warrants in exchange for the special warrants. Management expects
that the current cash reserves will be sufficient to fund the
Company's development program beyond the 2005 fiscal year. About YM
BioSciences YM BioSciences Inc. is a cancer drug development
company. Its lead drug, tesmilifene, is a small molecule
chemopotentiator (for taxanes and anthracyclines) currently
undergoing a pivotal Phase III trial in metastatic breast cancer,
which was initiated in March 2004. Tesmilifene previously completed
a positive Phase III trial. In addition to tesmilifene, the Company
is developing an EGFr humanized monoclonal antibody that has
completed Phase II trials and a GnRH anti-cancer vaccine that is in
Phase I/II clinical trials. YM BioSciences is also supporting the
pre-clinical development of two additional cancer products. Except
for historical information, this press release may contain
forward-looking statements, which reflect the Company's current
expectation regarding future events. These forward-looking
statements involve risk and uncertainties, which may cause but are
not limited to, changing market conditions, the successful and
timely completion of clinical studies, the establishment of
corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the
regulatory approval process and other risks detailed from time to
time in the Company's ongoing quarterly and annual reporting. YM
BioSciences Inc. Consolidated Balance Sheet March 31 June 30 ASSETS
2004 2003 (Unaudited) (audited) Current assets Cash and short-term
deposits $ 22,410,456 $ 7,675,466 Accounts receivable and prepaid
expenses 133,975 168,187 Marketable securities (cost - $350,128)
19,715 783,622 ------------- ------------- 22,564,146 8,627,275
Capital assets 11,381 22,567 ------------- ------------- Total
assets $ 22,575,527 $ 8,649,842 ------------- -------------
------------- ------------- LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities Accounts payable $ 1,253,756 $ 101,506 Accrued
liabilities 206,833 221,077 ------------- ------------- 1,460,589
322,583 Shareholders' equity Share capital 58,807,212 44,729,104
Share purchase warrants 2,922,343 - Contributed surplus 26,215
9,965 Deficit (40,640,832) (36,411,810) ------------- -------------
21,114,938 8,327,259 ------------- ------------- Total Liabilities
and Shareholders' equity $ 22,575,527 $ 8,649,842 -------------
------------- ------------- ------------- See accompanying notes YM
BioSciences Inc. Consolidated Statements of Operations and Deficit
(Unaudited) For the periods ended March 31, 2004 and March 31, 2003
Three months ended Nine months ended March 31 March 31 2004 2003
2004 2003 ---- ---- ---- ---- REVENUE Interest income $ 120,441 $
74,601 $ 225,203 $ 211,796 ------------- -------------
------------- ------------- 120,441 74,601 225,203 211,796
------------- ------------- ------------- ------------- EXPENSES
General and administrative 736,827 474,824 1,831,252 1,398,527
Licensing and product development 2,244,723 943,033 3,134,146
3,192,700 ------------- ------------- ------------- -------------
2,981,550 1,417,857 4,965,398 4,591,227 ------------- -------------
------------- ------------- Loss before the undernoted (2,861,109)
(1,343,256) (4,740,195) (4,379,431) Gain on foreign exchange
115,545 29,545 Gain on sale of marketable securities 638,332
638,332 Loss on marketable securities (713,397) - (1,850,500)
------------- ------------- ------------- ------------- Loss for
the period (2,107,232) (2,056,653) (4,072,318) (6,229,931)
------------- ------------- ------------- ------------- Cost of
purchasing shares for cancellation in excess of book value -
(27,740) (156,704) (39,239) Deficit, beginning of period
(38,553,600) (33,154,670) (36,411,810) (28,969,893) Deficit, end of
period $(40,640,832) $(35,239,063) $(40,640,832) $(35,239,063)
------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- Basic and
diluted loss per common share $ (0.09) $ (0.16) $ (0.20) $ (0.48)
------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- Weighted
Average number of common shares outstanding 22,427,475 12,998,094
19,952,844 12,998,094 See accompanying notes YM BioSciences Inc.
Consolidated Statements of Cash Flows (Unaudited) For the periods
ended March 31, 2004 and March 31, 2003 Three months ended Nine
months ended March 31 March 31 2004 2003 2004 2003 ---- ---- ----
---- Operating activities ------------ Net loss for the period $
(2,107,232) $ (2,056,653) $ (4,072,318) $ (6,229,931) Items not
involving cash: Depreciation - 14,910 14,910 44,730 Unrealized loss
on marketable securities - 713,397 - 1,850,500 Stock-based
compensation - 16,250 Changes in non-cash operating working
capital: Restricted cash 600,000 600,000 Accounts receivable and
prepaid expenses 74,285 23,214 148,472 100,329 Accounts payable and
accrued liabilities 958,392 (148,165) 1,138,006 (61,191)
------------- ------------- ------------- ------------- (1,074,555)
(853,279) (2,754,680) (3,695,563) Financing activities ------------
Net proceeds from issuance of special warrants 17,047,001 Exercise
of options 27,125 - 27,125 Purchase of shares for cancellation -
(44,081) (230,379) (64,107) ------------- -------------
------------- ------------- 27,125 (44,081) 16,843,747 (64,107)
Investing activities ------------ Disposal of marketable securities
649,647 649,647 Additions to capital assets - - (3,724) (2,361)
------------- ------------- ------------- ------------- 649,647
645,923 (2,361) Increase (decrease) in cash and term deposits
(397,783) (897,378) 14,734,990 (3,762,031) Cash and term deposits,
beginning of period 22,808,239 9,842,869 7,675,466 12,707,522
------------- ------------- ------------- ------------- Cash and
term deposits, end of period $ 22,410,456 $ 8,945,491 $ 22,410,456
$ 8,945,491 ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- Notes to
Consolidated Financial Statements (Unaudited) 1. Basis of
Presentation These consolidated financial statements of YM
BioSciences Inc. ("Company") follow the same accounting policies
and methods of their application as the audited annual financial
statements for the year ended June 30, 2003. These consolidated
financial statements should be read in conjunction with the audited
annual consolidated financial statements. 2. Share Capital and
Contributed Surplus a) On December 15, 2003, the Company completed
the sale of 10,895,658 special warrants for total proceeds of
$19,067,402 by way of private placement. Each special warrant sold
for $1.75 and entitles the holder to receive one common share and
one-half of a share purchase warrant. On February 17, 2004,
pursuant to a prospectus filed with the Ontario Securities
Commission, the special warrants were automatically exercised and
the Company issued 10,895,658 common shares and 5,447,829 share
purchase warrants. Each whole share purchase warrant entitles the
holder to purchase one additional common share for $2.50 for five
years. b) The Company purchased for cancellation 169,900 common
shares during the first two quarters ended December 31, 2003 under
a normal course issuer bid, at a total cost of $230,339. The excess
of the cost of purchase over the book value of the shares, $156,704
has been added to the deficit for the YTD. 3. Marketable securities
On January 9, 2004, the Company completed a transaction whereby it
sold 1,100,000 ordinary shares of NOIT at their market value of
pnds stlg 0.55 (approximately $1.29) per share, resulting in a net
gain of approximately $633,000. As at March 31, 2004 the marketable
securities consist of 220,000 share purchase warrants in NOIT that
had a market value on March 31, 2004 of $68,972. 4. The opening
accumulated deficit has been restated to include $86,000 loss on
foreign exchange that should have been recorded in the last
quarter. DATASOURCE: YM BioSciences Inc. CONTACT: Enquiries: James
Smith, The Equicom Group Inc., Tel. (416) 815-0700 x 229, Fax (416)
815-0080, Email: ; YM BioSciences Inc., Tel. (905) 629-9761, Fax
(905) 629-4959, Email:
Copyright