IMI reports third-quarter results and provides update on lead
products TORONTO, Nov. 13 /PRNewswire-FirstCall/ -- IMI
International Medical Innovations Inc. (TSX:IMI; Amex:IME) today
announced its results for the fiscal 2003 third quarter ended
September 30, 2003. During the quarter and subsequent weeks, IMI's
progress included scientific, commercial and corporate
achievements. "Our marketing partner, McNeil Consumer Healthcare,
took significant strides in the past quarter toward marketing our
skin test for heart disease in Canada," said Dr. Brent Norton, IMI
President and CEO. "Earlier this week McNeil announced that the
product will be launched in Canada under the brand name PreVu(x)
coronary heart disease predictor; it will continue to be known as
Cholesterol 1,2,3(TM) in other territories. McNeil has begun
educating doctors through initiatives like publicizing this week's
AHA presentation, and has assembled an international Scientific
Advisory Board that will play a vital role in building acceptance
of skin sterol testing as a novel heart- disease predictor. McNeil
has begun its customer-education phase to build acceptance for the
test, and will begin making PreVu(x) available to doctors in 2004,
with specific timing to be announced by McNeil." "The scientific
support for skin testing for heart disease continues to grow,
forming a stronger foundation for marketing and adoption. Our test
was the subject of a presentation earlier this week at the American
Heart Association (AHA), as researchers from Johns Hopkins
University presented exciting data from the Multi-Ethnic Study on
Atherosclerosis (MESA), showing that IMI's skin test can help
identify subclinical, or hidden, heart disease. We also entered
into a collaborative partnership with AtheroGenics, Inc. to join a
major international study that will provide vital data about our
test's ability to predict heart attacks and stroke, and will build
global awareness of the technology as it goes into use at up to 180
sites around the world," said Dr. Norton. "Our suite of
early-detection tests for cancer is also progressing well. We began
the quarter by presenting positive new study results for all three
of our cancer-detection tests at the American Association for
Cancer Research meeting in Washington in July. Since then, our
LungAlert(TM) test has been added to the International Early Lung
Cancer Action Program (I-ELCAP) study, which will provide valuable
data and exposure for the product, and we are working toward a
similar initiative with ColorectAlert(TM). Our scientific team
discontinued development of the 5-alpha-reductase assay for
prostate cancer and will shift focus to our GOS platform for
prostate cancer - the same platform as our three existing
cancer-detection tests, which remain the company's current
priorities," said Dr. Norton. "In the third quarter we received ISO
certification, which means IMI meets the highest international
standards for quality management systems. This certification sends
an important signal to our customers and partners, and is a
regulatory requirement in Canada and Europe for new product license
submissions," said Dr. Norton. "In September IMI began trading on
the American Stock Exchange, a move we believe will enable many
more investors to participate in IMI's growth over the coming
months and years. The U.S. market is keenly aware of the value of
predictive medicine products and IMI is well positioned in this
field," said Dr. Norton. Financial Highlights For the three months
ended September 30, 2003 (Q3 2003), IMI reports a net loss of
$992,000 or $0.05 per share compared with a loss of $1,089,000 or
$0.05 per share for the quarter ended September 30, 2002 (Q3 2002).
For the nine months ended September 30, 2003, the Company reports a
net loss of $2,636,000 or $0.13 per share, compared with $3,081,000
or $0.15 per share for the nine months ended September 30, 2002.
Research and development expenditures for Q3 2003 decreased to
$457,000, compared with $667,000 for Q3 2002, a decrease of
$210,000. Total research expenditures for the nine months ended
September 30, 2003 and September 30, 2002 amounted to $1,154,000
and $1,693,000, respectively. The major reason for the decrease was
a reduction of $104,000 in the cost of clinical trials for the
quarter (reduction of $421,000 for the nine months). The Company is
currently conducting 15 clinical trials, but several of them are
subsidized through collaborative arrangements with third parties,
thereby significantly reducing the Company's expenses. Stock-based
compensation costs that related to research and development
resulted in non-cash expenses of $22,000 for Q3 2003 and $26,000
for nine months compared to nil for the corresponding periods in
2002. General and administration expenses amounted to $524,000 for
Q3 2003, compared with $509,000 for Q3 2002, an increase of
$15,000. Total general and administration expenses for the nine
months ended September 30, 2003 amounted to $1,637,000 compared to
$1,567,000 in 2002. Expenses related to the application for listing
on the American Stock Exchange increased by $15,000 for the quarter
but decreased by $31,000 for nine months. The Company's shares
commenced trading on Amex on September 17, 2003. A contract with a
U.S. consultant expired in mid-2002, resulting in a savings of
$79,000 for the nine-month period in 2003 compared with 2002. Cash
compensation for directors fees amounted to $32,000 for Q3 2003 and
$46,000 for nine months compared to nil for 2002. Stock-based
compensation costs that related to administration resulted in
non-cash expenses of $25,000 for the nine-month period ended
September 30, 2003 compared to nil for the corresponding period in
2002. As at September 30, 2003 the Company had cash, cash
equivalents and short-term investments totaling $7,815,000
($10,112,000 as at December 31, 2002). For the nine months ended
September 30, 2003 the Company received $216,000 from the exercise
of options and the repayment of shareholder loans. For the
corresponding period in 2002, the Company received net proceeds of
$5,969,000 from a private placement of 1.2 million common shares
and from the exercise of warrants and options. Cash used to fund
the operating activities during Q3 2003 amounted to $757,000
compared to $1,252,000 for Q3 2002 ($2,379,000 and $3,068,000 for
the nine months ended September 30, 2003 and 2002, respectively).
The Company has no long-term debt. About IMI IMI is a world leader
in predictive medicine, dedicated to developing rapid, non-invasive
tests for the early detection of life-threatening diseases,
particularly cardiovascular disease and cancer. The company's head
office is located in Toronto, and its research and product
development facility is at McMaster University in Hamilton,
Ontario. For further information, please visit the company's web
site at http://www.imimedical.com/. Quarterly investor webcast and
conference call: Thursday, November 13, 2003, 10:30 a.m. ET Live
webcast: http://www.imimedical.com/ Toronto (416) 695-5806; North
America (800) 273-9672 Replay available on IMI's web site
(http://www.imimedical.com/) for three months, or via phone until
November 20 at (416) 695-5800 or (800) 408-3053, access code
1494990. This release contains forward-looking statements that
reflect the company's current expectation regarding future events.
The forward-looking statements involve risk and uncertainties.
Actual events could differ materially from those projected herein
and depend on a number of factors including, but not limited to,
changing market conditions, successful and timely completion of
clinical studies, uncertainties related to the regulatory approval
process, establishment of corporate alliances and other risks
detailed from time to time in the company's quarterly, annual and
other regular filings.
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IMI International Medical Innovations Inc. Incorporated under the
laws of Canada
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Consolidated Balance Sheets As at September 30, 2003 and December
31, 2002 September 30 December 31 2003 2002 (Unaudited) (Audited)
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ASSETS Current Cash and cash equivalents $ 10,940 $ 150,451
Short-term investments 7,804,810 9,961,743 Prepaid expenses and
other receivables 91,409 237,591 Investment tax credits receivable
115,000 271,000
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Total current assets 8,022,159 10,620,785
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Capital assets, net 429,872 191,632 Acquired technology, net
481,921 566,966
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$ 8,933,952 $ 11,379,383
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LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and
accrued liabilities $ 520,025 $ 589,555
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Total current liabilities 520,025 589,555
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Deferred revenue 94,825 100,000
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Total liabilities 614,850 689,555
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Shareholders' equity Capital Stock 24,051,068 23,785,884 Warrants
496,000 496,000 Deficit (16,227,966) (13,592,056)
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Total shareholders' equity 8,319,102 10,689,828
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$ 8,933,952 $ 11,379,383
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IMI International Medical Innovations Inc.
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Consolidated Statements of Loss and Deficit Three months ended Nine
months ended September 30 September 30 2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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EXPENSES Research and development $ 456,633 $ 666,624 $ 1,154,112 $
1,693,223 General and administration 524,109 508,979 1,636,957
1,567,016 Amortization 118,174 43,317 205,575 152,451
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1,098,916 1,218,920 2,996,644 3,412,690
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RECOVERIES AND OTHER INCOME Investment tax credits 56,634 45,000
172,217 144,908 Interest and other income 50,108 84,753 188,517
186,618
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106,742 129,753 360,734 331,526
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Net loss for the period (992,174) (1,089,167) (2,635,910)
(3,081,164) Deficit, beginning of period (15,235,792) (11,565,791)
(13,592,056) (9,573,794)
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Deficit, end of period $(16,227,966) $(12,654,958) $(16,227,966)
$(12,654,958)
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Basic and fully diluted loss per share $ (0.05) $ (0.05) $ (0.13) $
(0.15)
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Weighted average number of common shares outstanding 20,924,582
20,687,138 20,884,113 20,283,300
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IMI International Medical Innovations Inc.
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Consolidated Statements of Cash Flows Three months ended Nine
months ended September 30 September 30 2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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OPERATING ACTIVITIES Net loss for the period $ (992,174)
$(1,089,167) $(2,635,910) $(3,081,164) Add item not involving cash
Amortization 118,174 43,317 205,575 152,451 Loss on disposal of
capital asset - - 5,230 - Stock compensation costs included in:
Research and development expense 21,507 - 25,673 - General and
administrative expense 3,424 - 24,694 -
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(849,069) (1,045,850) (2,374,738) (2,928,713) Net change in
non-cash working capital balances related to operations 91,678
(206,039) (4,299) (139,651)
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Cash used in operating activities (757,391) (1,251,889) (2,379,037)
(3,068,364)
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INVESTING ACTIVITIES Short term investments 704,168 923,756
2,156,933 (2,322,874) Purchase of acquired technology - - - -
Purchase of capital assets (102,412) - (133,844) (16,821)
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Cash used in investing activities 601,756 923,756 2,023,089
(2,339,695)
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FINANCING ACTIVITIES Issuance of capital stock, net 73,437 205,581
216,437 5,968,886
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Cash provided by financing activities 73,437 205,581 216,437
5,968,886
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Net increase (decrease) in cash and cash equivalents during the
period (82,198) (122,552) (139,511) 560,827 Cash and cash
equivalents - Beginning of period 93,138 1,276,758 150,451 593,379
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- End of period $ 10,940 $ 1,154,206 $ 10,940 $ 1,154,206
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Represented by Cash $ 10,940 $ 12,646 $ 10,940 $ 12,646 Cash
equivalents - 1,141,560 - 1,141,560
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$ 10,940 $ 1,154,206 $ 10,940 $ 1,154,206
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DATASOURCE: IMI International Medical Innovations Inc. CONTACT:
Andrew Weir, Director, Communications; Ron Hosking, Vice President
and CFO, (416) 222-3449,
Copyright