Edmonton Journal ArticleLosing millions 'not bad news'
Biomira spent more on programs to hike investors' returns
Jody Warwaruk, Journal Business Writer
The Edmonton Journal
Don't expect the president of Edmonton's largest biotech company to
bemoan losing nearly $45 million last year.
"This is not bad news," Dr. Alex McPherson said Thursday, after
Biomira Inc. released fourth quarter and year-end results for the
period ending Dec. 31.
"This is fantastically good news," he said. "Investors invest in
biotech to get a substantial return on their investment in as timely a
fashion as possible. The only way that can happen is if you move your
programs forward in a rigorous and aggressive fashion. In order to do
that you have to spend money."
Biomira, which specializes in cancer vaccines, reported losses of
$44.9 million in 2000, up 43 per cent from the $31.4 million it lost
the previous year. The company spent $42.1 million on research and
development in 2000, compared with $28.9 million in 1999.
"Research and development includes much more than working with mice
and working in a laboratory," McPherson said. "It includes all the
clinical and regulatory aspects of moving the vaccine program forward."
Biomira's lead product, the Theratope vaccine for women with
metastatic breast cancer, is currently in its third phase of clinical
trials with 950 patients enrolled at 120 sites in 11 countries.
Results from the second phase have been promising, McPherson said. One
part of the testing showed patients who got the optimal formulation of
Theratope lived, on average, nearly three times as long as those who
weren't on the program.
McPherson said the Data Safety Monitoring Board will do an independent
review of the findings, with information available towards the end of
the fourth quarter of this year.
Biomira is also conducting trials for its BLP25 vaccine. Patients with
stage four non-small cell lung cancer are enrolled at 10 Canadian
centres and an expected four more centres in the UK.
The company is in the process of negotiating alliances for its two
lead products. "We are in the final stages of that negotiation and
hope to make an announcement by the end of the first quarter or
shortly into the next," he said.
Biomira maintains a strong cash position with $58.5 million in cash
and short-term investments, after an issue of 4.3 million shares for
proceeds of $63.6 million.
The company has a staff of 180 people; 165 of those work in Edmonton.
Biomira (TSE:BRA; Nasdaq:Biom) shares closed at $9.30 Thursday, down
62 cents.
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