[November 09, 2012] |
|
BioTime Announces Third Quarter 2012 Financial Results and Recent Corporate Accomplishments
ALAMEDA, Calif. --(Business Wire)--
BioTime, Inc. (NYSE MKT: BTX), a biotechnology company that develops and
markets products in the field of regenerative medicine, today reported
financial results for the third quarter and year-to-date period ended
September 30, 2012 and highlighted recent corporate accomplishments.
Financial Results
Net Loss
Net loss attributable to BioTime for the third quarter of 2012 was $5.0
million or $0.10 per share, compared to a net loss of $3.7 million or
$0.08 per share for the same period of 2011. For the nine months ended
September 30, 2012, net loss attributable to BioTime was $15.4 million,
or $0.31 per share, compared to $11.2 million, or $0.23 per share for
the same period of 2011.
Revenue
Total revenue, on a consolidated basis, was approximately $1.0 million
and $2.7 million for the third quarter and year-to-date period ended
September 30, 2012, respectively, compared to $1.2 million and $2.8
million for the same periods of 2011. Total revenue was effectively the
same as prior periods, but license revenue increased based upon our
subsidiary LifeMap Sciences' subscription and advertising revenue for GeneCards®,
which was offset by lower grant revenue recognized due to the completion
of the California Institute of Regenerative Medicine (CIRM) grant in
August 2012.
Expenses
Total operating expenses for the third quarter of 2012 were $6.8
million, compared to $5.4 million for the comparable period in 2011.
Research and development expenses for the second quarter of 2012 were
$4.6 million, compared to $3.5 million for the comparable 2011 period.
General and administrative expenses for the third quarter of 2012 were
$2.2 million, compared to $1.9 million for the comparable 2011 period.
Total operating expenses for the first nine months of 2012 were $20.4
million, compared to $15.9 million for the comparable period in 2011.
Research and development expenses for the first nine months of 2012 were
$13.3 million, compared to $9.8 million for the comparable 2011 period.
General and administrative expenses for the first nine months of 2012
were $7.0 million, compared to $6.2 million for the comparable 2011
period.
The increase in research and development expenses for the three and nine
month periods ending September 30, 2012, compared to the same periods in
2011, continue to be due to increased headcount-related expenses,
patent-related legal fees, and increased efforts in the ReneviaTM
clinical development program and PanC-DxTM diagnostic
development program. The increases in general and administrative
expenses for the third quarter of 2012 and the nine months ended
September 30, 2012, compared to the same periods in 2011, are primarily
due to increased headcount-related expenses, including non-cash stock
compensation expense.
Cash Flow
Net cash used in operating activities was $5.0 million for the three
months ended September 30, 2012 compared to $3.6 million for the three
months ended September 30, 2011, reflecting additional expenses related
to increased headcount and research and development programs in
BioTime's subsidiaries year over year. Net cash used in operating
activities for the nine months ended September 30, 2012 was $14.7
million for the nine months ended September 30, 2012 compared to $9.7
million for the nine months ended September 30, 2011.
Balance Sheet
Cash and cash equivalents, on a consolidated basis, totaled $7.8 million
as of September 30, 2012, compared with $22.2 million as of December 31,
2011.
As of September 30, 2012, BioTime subsidiaries, OncoCyte and LifeMap
Sciences, held 1,286,174 and 420,000 BioTime common shares,
respectively. The common shares are accounted for as Treasury Stock on a
consolidated basis, but the investment accounts held by each subsidiary
with a current combined value of approximately $6 million, are available
to fund the operations of OncoCyte and LifeMap. The BioTime shares held
by LifeMap were contributed as part of an investment of approximately $2
million in LifeMap through a share exchange agreement with an investor
in July 2012.
On August 24, 2012, BioTime entered into a sales agreement with Cantor
Fitzgerald & Co., under which BioTime may, at its discretion, from time
to time sell up to a maximum of $25 million of its common shares through
an "at-the-market" equity offering program known as a Controlled Equity
Offering ("CEO"). Cantor Fitzgerald & Co. will act as sales agent for
any sales made under the CEO. The common shares will be sold at market
prices prevailing at the time of a sale (if any) of the common shares or
at prices negotiated with Cantor Fitzgerald & Co., and, as a result,
prices may vary during the period of the offering. BioTime is not
required to sell any of the reserved shares at any time during the term
of the CEO and there are no stand-by fees for having established the
arrangement. The sales agreement does not prohibit BioTime from
conducting additional financings.
Third Quarter and Recent Corporate Accomplishments
Potential of Expanded Operations and New Subsidiaries
-
Announced the formation of a new wholly owned subsidiary, BioTime
Acquisition Corporation, or BAC, to pursue opportunities and acquire
assets and businesses in the fields of stem cells and regenerative
medicine.
Entered Into Strategic Financings
-
Subsidiary LifeMap Sciences, Inc. announced that it entered into a
share exchange with an investor where the investor agreed to
contribute to LifeMap, in the aggregate, BioTime common shares having
an aggregate value of not less than $2 million and not more than $3
million. LifeMap may sell, from time to time, some or all of the
BioTime shares it receives and will use proceeds from the sale of the
shares to expand the development and marketing of its database
products, its research products, and its therapeutic discovery
activities.
-
Subsidiary Cell Cure Neurosciences Ltd. announced a share purchase
agreement through which BioTime agreed to purchase 87,456 Cell Cure
ordinary shares in exchange for 906,735 BioTime common shares, with an
approximate investment of $3.5 million. As a result of the share
purchase, once the transaction is completed, BioTime will own
approximately 62.6% of the outstanding ordinary shares of Cell Cure.
Advanced Near-Term Product Development
-
LifeMap Sciences announced progress on key development initiatives. In
October, LifeMap launched its database product MalaCards, a new
database of human diseases that is based on their leading GeneCards®
platform. MalaCards (www.malacards.org)
contains computerized "cards" classifying information relating to a
wide array of human diseases. This novel research tool will aid
researchers in studying the roles of genes and cells in disease
processes. LifeMap expects to launch or upgrade its other database
products: GeneCards®, PanDaTox, and LifeMap
Discovery™ by year end and will soon launch the marketing and
sales of BioTime's proprietary research product lines, including PureStem™
human progenitor and human embryonic stem cell lines via the company's LifeMap
BioReagents™ portal.
-
LifeMap Sciences expanded on its therapeutic discovery collaboration
with BioTime, which utilizes the LifeMap Discovery™ platform
and leverages the LifeMap scientific team (including ten PhD and four
MS biologists and bioinformatics specialists) to research and identify
those progenitor cell lines that are most likely to be useful in
developing cell-based regenerative medicine therapies for a wide range
of diseases. Once identified, selected cell lines will be marketed by
LifeMap for research purposes via the LifeMap BioReagents™
portal and may be advanced into therapeutic development by BioTime
and/or LifeMap.
-
Announced an amended license from the University of Utah to expand the
field of use for which BioTime is licensed to produce and market
products covered by the core patents underlying HyStem®
technology. BioTime now is licensed worldwide for all uses, with the
exception of veterinary medicine and animal health. The field of use
includes, but is not limited to, all human pharmaceutical and medical
device applications, all tissue engineering and regenerative medicine
uses, and all research applications. Previously, BioTime's license in
the United States was not exclusive and the fields of use of the
technology permitted by the license were not as broad.
New Research Grant
-
Subsidiary Cell Cure Neurosciences Ltd. was awarded a grant for 2012
in the amount of approximately $1.33 million from Israel's Office of
the Chief Scientist to help finance the development of OpRegen®,
Cell Cure's cell-based therapeutic product in development for the
treatment of dry age-related macular degeneration, a severe form of
acute vision loss and the leading cause of blindness in an aging
population.
Additional Collaborations
-
Announced the signing of an exclusive sublicense agreement and a
supply agreement with Jade Therapeutics, LLC, a developer of an
ophthalmological therapeutic sustained-release drug delivery platform.
BioTime will provide Jade with clinical-grade HyStem® hydrogels
and certain patented technology for use by Jade in the development of
new pharmaceutical products for ophthalmologic use. Jade plans to
utilize the hydrogels to facilitate the time-released topical delivery
of recombinant human growth hormone to help heal lesions on the
surface of the eye.
Expanded Management and Board of Directors
-
BioTime Acquisition Corp. (BAC) announced that Thomas Okarma, PhD, MD,
will serve as the BAC's Chief Executive Officer and as a member of the
board of directors. Dr. Okarma is the former President and Chief
Executive Officer of Geron Corporation and served on that company's
board of directors.
-
BioTime's subsidiary OrthoCyte Corporation announced the appointment
of Francois Binette, PhD, as their Vice President of Research and
Business Development. Dr. Binette's primary focus will be to develop
and partner near- and long-term product opportunities in regenerative
medicine with an emphasis on orthopedic diseases and injuries.
-
LifeMap Sciences announced the appointment of Louis E. Silverman to
their board of directors. Mr. Silverman is an experienced health care
executive with board level and operating experience in health care IT,
pharmaceuticals, home health care, worker's compensation managed care
and revenue cycle management.
Key Research Publications and Presentations.
-
BioTime's subsidiary OncoCyte Corporation announced the publication of
a scientific report on the gene COL10A1 and its potential as a
marker for numerous types of human cancers. The paper, published in
the peer-reviewed journal Future
Oncology, describes the microarray-based approach used to
identify COL10A1 as a pan-cancer biomarker with significantly
elevated expression in diverse malignant tumor types including cancers
of the breast, stomach, colon, lung, bladder, pancreas, and ovaries.
In addition, the protein was shown to be specifically localized within
tumor vasculature. Combined, these findings will be an important basis
for the development and application of new diagnostic and therapeutic
strategies, including the measurement of Collagen Type X in the blood
as a screen for the presence of cancer, the use of antibodies that
recognize and bind to the protein to visualize and locate tumors in
the body, and the targeted delivery of tumor-destroying agents.
-
Presented at the following scientific and investor meetings: Stem
Cells USA & Regenerative Medicine Congress 2012, and the
2012 Agora Financial Investment Symposium.
About BioTime, Inc.
BioTime, headquartered in Alameda, California, is a biotechnology
company focused on regenerative medicine and blood plasma volume
expanders. Its broad platform of stem cell technologies is enhanced
through subsidiaries focused on specific fields of application. BioTime
develops and markets research products in the field of stem cells and
regenerative medicine, including a wide array of proprietary ACTCellerate™
cell lines, HyStem® hydrogels, culture media, and
differentiation kits. BioTime is developing Renevia™ (formerly
known as HyStem®-Rx), a biocompatible,
implantable hyaluronan and collagen-based matrix for cell delivery in
human clinical applications. BioTime's therapeutic product development
strategy is pursued through subsidiaries that focus on specific organ
systems and related diseases for which there is a high unmet medical
need. BioTime's majority-owned subsidiary Cell Cure Neurosciences Ltd.
is developing therapeutic products derived from stem cells for the
treatment of retinal and neural degenerative diseases. BioTime's
subsidiary OrthoCyte Corporation is developing therapeutic applications
of stem cells to treat orthopedic diseases and injuries. Another
subsidiary, OncoCyte Corporation, focuses on the diagnostic and
therapeutic applications of stem cell technology in cancer, including
the diagnostic product PanC-Dx™ currently being developed for the
detection of cancer in blood samples. ReCyte Therapeutics, Inc. is
developing applications of BioTime's proprietary induced pluripotent
stem cell technology to reverse the developmental aging of human cells
to treat cardiovascular and blood cell diseases. BioTime's subsidiary
LifeMap Sciences, Inc. markets GeneCards®, the leading
human gene database, and is developing an integrated database suite to
complement GeneCards® that will also include the LifeMap™
database of embryonic development, stem cell research, and regenerative
medicine, and MalaCards, the human disease database. LifeMap will
also market BioTime research products. BioTime's lead product, Hextend®,
is a blood plasma volume expander manufactured and distributed in the
U.S. by Hospira, Inc. and in South Korea by CJ CheilJedang Corporation
under exclusive licensing agreements. Additional information about
BioTime can be found on the web at www.biotimeinc.com.
Forward-Looking Statements
Statements pertaining to future financial and/or operating results,
future growth in research, technology, clinical development, and
potential opportunities for BioTime and its subsidiaries, along with
other statements about the future expectations, beliefs, goals, plans,
or prospects expressed by management constitute forward-looking
statements. Any statements that are not historical fact (including, but
not limited to statements that contain words such as "will," "believes,"
"plans," "anticipates," "expects," "estimates") should also be
considered to be forward-looking statements. Forward-looking statements
involve risks and uncertainties, including, without limitation, risks
inherent in the development and/or commercialization of potential
products, uncertainty in the results of clinical trials or regulatory
approvals, need and ability to obtain future capital, and maintenance of
intellectual property rights. Actual results may differ materially from
the results anticipated in these forward-looking statements and as such
should be evaluated together with the many uncertainties that affect the
business of BioTime and its subsidiaries, particularly those mentioned
in the cautionary statements found in BioTime's Securities and Exchange
Commission filings. BioTime disclaims any intent or obligation to update
these forward-looking statements.
To receive ongoing BioTime corporate communications, please click on the
following link to join our email alert list: http://phx.corporate-ir.net/phoenix.zhtml c=83805&p=irol-alerts
|
BIOTIME, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
September 30, 2012 (unaudited)
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
7,830,347
|
|
|
|
$
|
22,211,897
|
|
Inventory
|
|
|
56,968
|
|
|
|
|
51,174
|
|
Prepaid expenses and other current assets
|
|
|
1,861,407
|
|
|
|
|
2,692,303
|
|
Total current assets
|
|
|
9,748,722
|
|
|
|
|
24,955,374
|
|
|
|
|
|
|
|
|
|
Equipment, net
|
|
|
1,251,083
|
|
|
|
|
1,347,779
|
|
Deferred license and consulting fees
|
|
|
712,981
|
|
|
|
|
843,944
|
|
Deposits
|
|
|
67,889
|
|
|
|
|
63,082
|
|
Intangible assets, net
|
|
|
21,089,661
|
|
|
|
|
18,619,516
|
|
TOTAL ASSETS
|
|
$
|
32,870,336
|
|
|
|
$
|
45,829,695
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
2,162,390
|
|
|
|
$
|
2,681,111
|
|
Deferred grant income
|
|
|
55,710
|
|
|
|
|
261,777
|
|
Deferred license revenue, current portion
|
|
|
354,703
|
|
|
|
|
203,767
|
|
Total current liabilities
|
|
|
2,572,803
|
|
|
|
|
3,146,655
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES
|
|
|
|
|
|
|
|
Deferred license revenue, net of current portion
|
|
|
790,146
|
|
|
|
|
899,551
|
|
Deferred rent, net of current portion
|
|
|
60,462
|
|
|
|
|
66,688
|
|
Other long term liabilities
|
|
|
235,330
|
|
|
|
|
258,620
|
|
Total long-term liabilities
|
|
|
1,085,938
|
|
|
|
|
1,224,859
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
Preferred Shares, no par value, authorized 1,000,000 shares; none
issued
|
|
|
-
|
|
|
|
|
-
|
|
Common Shares, no par value, authorized 75,000,000 shares; issued
and outstanding shares; 50,868,932 issued and 49,162,758
outstanding as of September 30, 2012 and 50,321,962 issued and
49,035,788 outstanding at December 31, 2011, respectively
|
|
|
120,905,891
|
|
|
|
|
115,144,787
|
|
Contributed capital
|
|
|
93,972
|
|
|
|
|
93,972
|
|
Accumulated other comprehensive income
|
|
|
(197,384
|
)
|
|
|
|
(122,749
|
)
|
Accumulated deficit
|
|
|
(95,860,758
|
)
|
|
|
|
(80,470,009
|
)
|
Treasury stock at cost: 1,706,174 shares at September 30, 2012 and
1,286,174 shares at December 31, 2011
|
|
|
(8,001,762
|
)
|
|
|
|
(6,000,000
|
)
|
Total shareholders' equity
|
|
|
16,939,959
|
|
|
|
|
28,646,001
|
|
Noncontrolling interest
|
|
|
12,271,636
|
|
|
|
|
12,812,180
|
|
Total equity
|
|
|
29,211,595
|
|
|
|
|
41,458,181
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
32,870,336
|
|
|
|
$
|
45,829,695
|
|
|
|
|
|
|
|
|
|
BIOTIME, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2012
|
|
September 30, 2011
|
|
September 30, 2012
|
|
September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
License fees
|
|
$
|
337,633
|
|
|
$
|
54,900
|
|
|
$
|
549,521
|
|
|
$
|
201,589
|
|
Royalties from product sales
|
|
|
133,946
|
|
|
|
176,027
|
|
|
|
407,803
|
|
|
|
569,257
|
|
Grant income
|
|
|
441,630
|
|
|
|
746,426
|
|
|
|
1,518,086
|
|
|
|
1,605,612
|
|
Sale of research products
|
|
|
90,342
|
|
|
|
184,217
|
|
|
|
217,380
|
|
|
|
405,981
|
|
Total revenues
|
|
|
1,003,551
|
|
|
|
1,161,570
|
|
|
|
2,692,790
|
|
|
|
2,782,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
(169,734
|
)
|
|
|
(18,516
|
)
|
|
|
(273,916
|
)
|
|
|
(58,808
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues
|
|
|
833,817
|
|
|
|
1,143,054
|
|
|
|
2,418,874
|
|
|
|
2,723,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
(4,545,470
|
)
|
|
|
(3,488,121
|
)
|
|
|
(13,323,410
|
)
|
|
|
(9,756,443
|
)
|
General and administrative
|
|
|
(2,234,905
|
)
|
|
|
(1,887,298
|
)
|
|
|
(7,037,807
|
)
|
|
|
(6,193,383
|
)
|
Total expenses
|
|
|
(6,780,375
|
)
|
|
|
(5,375,419
|
)
|
|
|
(20,361,217
|
)
|
|
|
(15,949,826
|
)
|
Loss from operations
|
|
|
(5,946,558
|
)
|
|
|
(4,232,365
|
)
|
|
|
(17,942,343
|
)
|
|
|
(13,226,195
|
)
|
OTHER INCOME/(EXPENSES):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
5,624
|
|
|
|
2,911
|
|
|
|
17,321
|
|
|
|
19,705
|
|
Loss on sale of fixed assets
|
|
|
(1,451
|
)
|
|
|
(6,246
|
)
|
|
|
(4,997
|
)
|
|
|
(6,246
|
)
|
Other income/(expense), net
|
|
|
18,766
|
|
|
|
(919
|
)
|
|
|
(223,899
|
)
|
|
|
223,944
|
|
Total other income/(expenses), net
|
|
|
22,939
|
|
|
|
(4,254
|
)
|
|
|
(211,575
|
)
|
|
|
237,403
|
|
NET (News - Alert) LOSS
|
|
|
(5,923,619
|
)
|
|
|
(4,236,619
|
)
|
|
|
(18,153,918
|
)
|
|
|
(12,988,792
|
)
|
Less: Net loss attributable to the noncontrolling interest
|
|
|
965,605
|
|
|
|
498,993
|
|
|
|
2,763,169
|
|
|
|
1,833,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO BIOTIME, INC. (1)
|
|
$
|
(4,958,014
|
)
|
|
$
|
(3,737,626
|
)
|
|
$
|
(15,390,749
|
)
|
|
$
|
(11,154,849
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain/(loss)
|
|
|
(15,777
|
)
|
|
|
696,661
|
|
|
|
(74,635
|
)
|
|
|
(901,881
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE LOSS (2)
|
|
$
|
(4,973,791
|
)
|
|
$
|
(3,040,965
|
)
|
|
$
|
(15,465,384
|
)
|
|
$
|
(12,056,730
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS PER COMMON SHARE (1)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.31
|
)
|
|
$
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC AND
DILUTED
|
|
|
49,291,177
|
|
|
|
48,896,973
|
|
|
|
49,196,804
|
|
|
|
48,681,879
|
|
(1) Basic and diluted loss per common share is calculated using "Net
loss attributable to BioTime, Inc."
|
|
|
(2) Comprehensive net loss includes foreign currency translation
loss of $15,777 and $74,635 for the three and nine months ended
September 30, 2012, respectively and transaction gain of $696,661
and loss of $901,881 for the same periods in the prior year,
respectively arise entirely from the translation of foreign
subsidiary financial information for consolidation purposes and
therefore not used in the calculation of basic and diluted loss
per common share.
|
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