VANCOUVER, Aug. 15 /PRNewswire-FirstCall/ -- ID Biomedical
Corporation (TSX: IDB; NASDAQ: IDBE) announced today financial
results for the quarter ended June 30, 2005. Amounts, unless
specified, are expressed in Canadian dollars. Commenting on the
second quarter, Todd Patrick, President of ID Biomedical said, "The
Company is on track and progressing toward our goal of filing a
Biologics License Application (BLA) with the U.S. Food and Drug
Administration for our injectable influenza vaccine by year-end.
The filing of the BLA is the key objective for the Company and the
level of expenditures for the quarter reflects our support for this
project and is in-line with our expectations. Going forward, we
expect our expenditures to increase as we begin confirmatory
efficacy studies for our injectable influenza vaccine and our other
programs continue to advance in clinical development." The
Company's second quarter financial report will be available on our
web site and at http://www.sedar.com/. Highlights of the Company's
progress during the second quarter and a general company update
will be discussed on a conference call/web cast to be held Monday,
August 15 at 5:00 pm Eastern. The presentation can be accessed by
dialing 604-677-8677 or at
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal
sign)1204060. A recording of the call will be available until
August 29th by dialing 416-640-1917 and entering the code 21133330
followed by the number sign. CONDENSED FINANCIAL RESULTS The
Company recorded a net loss of $32.5 million ($0.75 per share) for
the three months ended June 30, 2005 compared to a net loss of
$10.9 million ($0.26 per share) for the three months ended June 30,
2004. The net loss for the six months ended June 30, 2005 was $60.1
million ($1.40 per share), compared to a net loss of $21.8 million
($0.52 per share) for the same period in 2004. The results from
operations include the activities of the acquired vaccine business
from Shire beginning September 10, 2004. For the three months ended
June 30, 2005, the Company's revenue totaled $13.0 million compared
to $2.7 million for the three months ended June 30, 2004. Revenue
for the six months ended June 30, 2005 was $25.8 million compared
to $4.3 million for the same period in 2004. Product sales revenue
in the amount of $7.6 million and $14.5 million was recorded for
the three and six months ended June 30, 2005 respectively. There
were no product sales for the three and six months ended June 30,
2004. This product sales revenue primarily relates to the sales of
the Company's NeisVac-C vaccine to the Canadian government. The
Company had no product sales prior to the acquisition of Shire.
Research and development contract revenue in the amount of $3.9
million was recorded for the three months ended June 30, 2005
compared to $2.0 million for the three months ended June 30, 2004.
Research and development contract revenue for the six months ended
June 30, 2005 was $8.3 million compared to $2.9 million for the
same period in 2004. Research and development contract revenue
includes revenue recognized as a result of the Shire Funding
Facility to support the research and development of the non-flu
vaccine candidates acquired from Shire. Revenue recognized from the
Shire Funding Facility totaled $3.5 million and $7.8 million for
the three and six months ended June 30, 2005 respectively. The
Company determined that these amounts are appropriate to recognize
as research and development contract revenue since the amount and
date of repayment of these advances are not known at this time.
Other research and development contract revenue totaled $0.4
million and $0.5 million for the three and six months ended June
30, 2005 respectively compared to $2.0 million and $2.9 million for
the same periods in 2004. Other research and development contract
revenue is a result of agreements executed during 2003 with Dynport
Vaccine Company for the development of an antigen for an injectable
subunit plague vaccine. Previously deferred licensing revenue in
the amount of $0.7 million was recognized for the three months
ended June 30, 2005, compared to $0.7 million for the same period
in 2004. Deferred licensing revenue recognized for the six months
ended June 30, 2004 was $1.4 million compared to $1.4 million for
the same period in 2004. Based on the Company's current licensing
agreements, amortization of deferred licensing revenue is expected
to continue at the present amount through October 2006. The
amortization of deferred licensing revenue does not result in
additional cash to the Company. Other revenue, consisting primarily
of the pandemic readiness fees under an agreement with the
Government of Canada and other fees to store and distribute
vaccines under an agreement with the Quebec Ministry of Health,
totaled $0.7 million and $1.6 million for the three and six months
ended June 30, 2005 respectively compared to $0 for the same
periods in 2004. Other revenue increased as a result of the Shire
acquisition. Cost of product sales for the three and six months
ended June 30, 2005 includes the expenses related to the
distribution of NeisVac-C, costs related to pandemic readiness fees
classified as other revenue, and other revenue related costs. Cost
of product sales was $6.9 million and $13.1 million for the three
and six months ended June 30, 2005 respectively compared to $0 for
the same periods in 2004. Prior to the acquisition of Shire, the
Company did not have any cost of products sales. Research and
development expenses increased $15.3 million or 188%, to $23.5
million for the three months ended June 30, 2005 compared to the
three months ended June 30, 2004. Research and development expenses
for the six months ended June 30, 2005 increased 150% to $45.8
million compared to the same periods in 2004. The increase in
research and development expenses in 2005, compared to the same
periods in 2004, is a result of the clinical development programs
acquired from Shire, predominantly the costs being incurred in
support of the U.S. licensure of the Company's injectable influenza
vaccine. Also impacting research and development expenses is the
clinical cost associated with advancing our other lead development
programs, and the funding of our early stage development programs.
Included in research and development expenses is stock-based
compensation expense totaling $1.1 million and $2.2 million for the
three and six months ended June 30, 2005 respectively compared to
$0.4 million and $1.0 million for the same periods in 2004.
Research and development tax credits and grants include amounts
received or receivable from Technology Partnerships Canada ("TPC"),
National Institutes of Health ("NIH") and provincial government
investment tax credits. Research and development tax credits and
grants were $2.5 million and $4.0 million for the three and six
months ended June 30, 2005 respectively compared to $0.2 million
and $0.5 million for the same periods in 2004. There were $0.4
million and $0.7 million in TPC grants recognized for the three and
six months ended June 30, 2005 respectively compared to $0 million
for the three and six months ended June 30, 2004. NIH grants
totaled $1.9 million and $2.8 million for the three and six months
ended June 30, 2005. There were no NIH grants during the three and
six months ended June 30 2004. Provincial government investment tax
credits totaled $0.3 million and $0.6 million for the three and six
months ended June 30, 2005 as compared to $0.2 million and $0.5
million for the same periods in 2004. Selling, general and
administrative expenses increased $5.9 million, or 216% to $8.7
million for the three months ended June 30, 2005 compared to the
three months ended June 30, 2004. Selling, general and
administrative expenses for the six months ended June 30, 2005
increased $10.6 million, or 210% to $15.6 million compared to the
same period in 2004. This increase is primarily the result of the
selling and administrative cost acquired in the Shire acquisition.
Also contributing to the increase is cost related to our
Sarbanes-Oxley reporting compliance and stock-based compensation.
Stock-based compensation expense associated with selling, general
and administrative personnel totaled $2.8 million and $4.0 million
for the three and six months ended June 30, 2005 respectively
compared to $0.5 million and $0.9 million for the same periods in
2004. Depreciation and amortization expense relates to facilities
and equipment and medical technology and other assets. Depreciation
and amortization expense increased $3.0 million, or 263% to $4.2
million for the three months ended June 30, 2005 compared to the
three months ended June 30, 2004. Depreciation and amortization for
the six months ended June 30, 2005 increased $5.9 million, or 261%
to $8.1 million compared to the same period in 2004. These
increases are directly related to the value of the assets acquired
in the Shire acquisition. Investment income increased $0.4 million
to $0.9 million for the three months ended June 30, 2005 compared
to the three months ended June 30, 2004. Investment income for the
six months ended June 30, 2005 increased $0.3 million compared to
the same period in 2004. The Company recorded a foreign exchange
loss of $0.9 million for the three months ended June 30, 2005 as
compared to a loss of $2.3 million for the three months ended June
30, 2004. For the six months ended June 30, 2005 the Company
recorded a foreign exchange loss of $0.4 million compared to a loss
of $2.3 million for the same period in 2004. This foreign exchange
loss is a result of the U.S. denominated Shire Funding Facility
related to flu advances and the financing transaction used to
repurchase the Shire subscription receipts, less gains related to
cash and cash equivalents held in U.S. dollars. The Company
recorded interest expense and other finance charges of $4.4 million
for the three months ended June 30, 2005 compared to $0.01 million
for the three months ended June 30, 2004. For the six months ended
June 30, 2005 the Company recorded interest expense and other
finance charges of $8.3 million compared to $0.02 million for the
same period in 2004. The increase in interest expense and other
finance charges is a direct result of the flu advances, received
under the Shire Funding Facility, and the interest expense and
finance charges associated with the loan payable that preceded the
repurchase of the Shire subscription receipts financing transaction
that closed on January 5, 2005. The Company recorded a loss on
disposal of facilities and equipment of $0.3 million for the three
and six months ended June 30, 2005 as compared to 0 for the same
periods in 2004. This loss reflects the write-off of leasehold
improvements of a facility that the Company has available for
sub-leasing. Consolidated Balance Sheets (Expressed in Canadian
dollars) June 30, 2005 and December 31, 2004
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June 30, December 31, 2005 2004 (Unaudited) (Audited) Assets Cash
and cash equivalents $113,296,553 $105,068,973 Other current assets
45,966,691 44,611,681
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159,263,244 149,680,654 Long-term receivable 400,466 468,278
Facilities and equipment 158,746,739 186,110,643 Investment 413,644
413,644 Medical technology and other assets 31,424,582 33,358,944
Deferred charges 925,620 - Goodwill 771,314 771,314
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$351,945,609 $370,803,477
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Liabilities and Shareholders' Equity
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Current liabilities $ 96,166,851 $ 95,978,227 Deferred revenue
9,394,998 11,101,339 Long-term debt 138,806,043 37,043,350
Obligation under capital lease 2,724 18,444 Shareholders' equity
107,574,993 226,662,117
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$351,945,609 $370,803,477
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Consolidated Statements of Operations (Expressed in Canadian
dollars) For the three and six months ended June 30, 2005 and 2004
-------------------------------------------------------------------------
Three months ended June 30 Six months ended June 30
------------------------------------------------------- 2005 2004
2005 2004
-------------------------------------------------------------------------
(Unaudited) (Unaudited (Unaudited) (Unaudited - Restated) -
Restated) Revenue: Product sales $ 7,619,105 $ - $ 14,494,644 $ -
Research and development contracts 3,940,111 2,046,601 8,256,479
2,889,768 Licensing 683,089 688,683 1,372,091 1,378,942 Other
746,340 - 1,627,706 -
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12,988,645 2,735,284 25,750,920 4,268,710 Expenses and other: Cost
of product sales 6,904,800 - 13,100,105 - Research and development
23,515,694 8,169,824 45,763,769 18,308,838 Research and development
tax credits and grants (2,505,687) (188,057) (4,036,271) (466,604)
Selling, general and administrative 8,653,254 2,740,657 15,646,362
5,040,561 Depreciation and amortization 4,203,512 1,158,193
8,096,510 2,245,017
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$ 40,771,573 $ 11,880,617 $ 78,570,475 $ 25,127,812
-------------------------------------------------------------------------
Loss from operations (27,782,928) (9,145,333) (52,819,555)
(20,859,102) Other income (expenses): Investment income 941,001
579,833 1,785,647 1,485,593 Foreign exchange gain (loss) (934,788)
(2,330,960) (429,107) (2,342,776) Interest expense and other
finance charges (4,422,628) (8,522) (8,298,191) (20,678) Loss on
disposal of facilities and equipment (340,104) - (340,104) - Loss
on disposal of medical technology and other assets - - - (26,744)
-------------------------------------------------------------------------
(4,756,519) (1,759,649) (7,281,755) (904,605)
-------------------------------------------------------------------------
Loss before income taxes (32,539,447) (10,904,982) (60,101,310)
(21,763,707) Income taxes - - - -
-------------------------------------------------------------------------
Loss for the period $(32,539,447) $(10,904,982) $(60,101,310)
$(21,763,707)
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Basic and diluted loss per common share $ (0.75) $ (0.26) $ (1.40)
$ (0.52)
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Weighted average number of shares outstanding 43,143,951 41,973,984
42,958,878 41,969,262
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Consolidated Statements of Cash Flows (Expressed in Canadian
dollars) For the three and six months ended June 30, 2005 and 2004
-------------------------------------------------------------------------
Three months ended June 30 Six months ended June 30
------------------------------------------------------- 2005 2004
2005 2004
-------------------------------------------------------------------------
(Unaudited) (Unaudited (Unaudited) (Unaudited - Restated) -
Restated) Cash provided by (used in) operations: Loss for the
period $(32,539,447) $(10,904,982) $(60,101,310) $(21,763,707)
Items not affecting cash 14,943,802 2,076,993 23,472,247 4,196,031
Net changes in non-cash working capital balances (15,231,829)
(2,432,987) (9,515,593) (5,033,589)
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Cash used in operating activities (32,827,474) (11,260,976)
(46,144,656) (22,601,265) Cash provided by (used in) investment
activities (17,091,628) 2,806,897 20,929,464 3,930,049 Cash
provided by financing activities 13,065,971 12,884 33,442,772
156,210
-------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents (36,853,131)
(8,441,195) 8,227,580 (18,515,006) Cash and cash equivalents,
beginning of period 150,149,684 139,013,838 105,068,973 149,087,649
-------------------------------------------------------------------------
Cash and cash equivalents, end of period $113,296,553 $130,572,643
$113,296,553 $130,572,643
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About ID Biomedical ID Biomedical is an integrated biotechnology
company dedicated to the development of innovative vaccine
products. It operates in research, development, manufacturing,
sales and marketing from its facilities in Canada and in the United
States. ID Biomedical is dedicated to becoming a premier vaccine
company with significant marketed products worldwide and an
extensive pipeline in both clinical and preclinical development. ID
Biomedical has a leading position in the Canadian influenza vaccine
market. It received a ten-year mandate from the Government of
Canada in 2001 to assure a state of readiness in the case of an
influenza pandemic and provide influenza vaccine for all Canadians
in such an event. It also currently supplies approximately 75% of
the Canadian government's influenza vaccine purchases. For further
information on ID Biomedical, please visit the Company's website at
http://www.idbiomedical.com/. (x) NeisVac-C is a trademark of
Baxter International Inc. and is used under license. The
information in this news release contains so-called
"forward-looking" statements. These include statements regarding ID
Biomedical's expectations and plans relating to the integration of
the vaccine business acquired from Shire, statements about ID
Biomedical's expectations, beliefs, intentions or strategies for
the future, which may be indicated by words or phrases such as
"anticipate", "expect", "intend", "plan", "will", "we believe", "ID
Biomedical believes", "management believes", and similar language.
All forward-looking statements are based on ID Biomedical's current
expectations and are subject to risks and uncertainties and to
assumptions made. Important factors that could cause actual results
to differ materially from those expressed or implied by such
forward-looking statements include: (i) the company's ability to
successfully integrate the Shire vaccine business; (ii) the
company's ability to successfully complete preclinical and clinical
development of its products; (iii) the company's ability to
manufacture its products; (iv) the seasonality of the flu-vaccine
business and related fluctuations in the company's revenues from
quarter to quarter; (v) decisions, and the timing of decisions,
made by the health regulatory agencies regarding approval of its
products for human testing; (vi) the company's ability to enter
into distribution agreements for its products, and to complete and
maintain corporate alliances relating to the development and
commercialization of its technology and products; (vii) market
acceptance of its technologies and products; and (viii) the
competitive environment and impact of technological change and
other risks detailed in the company's filings with the Securities
and Exchange Commission. ID Biomedical bases its forward-looking
statements on information currently available to it, and assumes no
obligation to update them. For further information, please contact:
Investor Relations/Media: Dean Linden Michele Roy (604) 431-9314
(450) 978-6313 DATASOURCE: ID Biomedical Corporation CONTACT:
Investor Relations, Media: Dean Linden, (604) 431-9314, ; Michele
Roy, (450) 978-6313, ; To request a free copy of this
organization's annual report, please go to http://www.newswire.ca/
and click on reports@cnw.
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