BioSyntech Announces Third Quarter Fiscal 2009 Financial Results

BioSyntech, Inc., a biotechnology company developing biotherapeutic thermogels for regenerative medicine, today announced its financial and operational results for the third quarter of fiscal 2009, ended December 31, 2008.

“We achieved a major milestone subsequent to the end of the quarter, completing the enrolment of eighty patients into the pivotal trial for our lead product, BST-CarGel®,” said Mr. Michel Lagueux, Chairman of the Board of Directors. “We will continue to manage our resources conservatively as we prepare for the results from this pivotal trial, which could lead to marketing approval for BST-CarGel® in Canada and Europe. In parallel, we continue to advance our US strategy for BST-CarGel®and the pursuit of strategic options.”

Financial Review

For the three-month period ended December 31, 2008, revenues were $3,198, compared to revenues of $21,193 for the same period in the previous year. For the nine-month period ended December 31, 2008, the Company had revenues of $17,065 compared to revenues of $125,357 for the nine-month period ended December 31, 2007. The Company has had limited revenues to date generated almost entirely by sales of purified chitosan, called Ultrasan.

Research and development (“R&D”) expenses totaled $1,646,645 for the third quarter of fiscal 2009, compared to $1,568,786 for the comparable quarter a year ago. Research and development expenses were $4,631,213 for the nine-month period ended December 31, 2008 compared to $4,404,126 for the same period a year ago. The increases were mainly due to higher research contracts only partly offset by lower compensation costs.

General and administrative expenses totaled $548,633 for the third quarter, compared to $917,521 for the comparable quarter a year ago. General and administrative expenses were $2,243,719 for the nine-month period ended December 31, 2008 compared to $2,766,658 for the same period a year ago. The decreases were mainly due to lower remuneration as a result of the restructuring, lower compensation expenses related to options granted, lower marketing and investor relations expenses, only partly offset by higher professional fees.

The accretion in the carrying value of the convertible debenture and interest was respectively of $1,029,436 and $1,819,255 for the quarter and nine-month periods ended December 31, 2008 compared to nil for the three-month and nine-month periods ended December 31, 2007.

The restructuring costs were $1,356,358 for the quarter and nine-month periods ended December 31, 2008 compared to nil for the three-month and nine-month periods ended December 31, 2007. The restructuring costs are mainly comprised of severances as dictated by contractual agreements and termination fees in accordance with Quebec common practice.

Net loss for the third quarter was $4,513,255 or ($0.05) per share, compared to a net loss of $2,338,932 or ($0.02) per share for the same period last year. The loss for the nine-month period ended December 31, 2008 amounted to $9,868,299 or ($0.10) per share compared $6,821,392 or ($0.07) per share for the nine-month period ended December 31, 2007.

As at December 31, 2008, the Company had cash, cash equivalents and short-term investments of $6,293,849 compared to $2,835,806 as at March 31, 2008.

The Company’s Management’s Discussion and Analysis is available on the BioSyntech website at www.biosyntech.com and with the Company’s regulatory filings at www.sedar.com.

Source: BioSyntech

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