BioTime Announces First Quarter 2013 Financial Results and Recent Corporate Accomplishments
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 first quarter ended March 31, 2013 and
highlighted recent corporate accomplishments.
First Quarter and Recent Corporate Accomplishments
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Entered into an Asset Contribution Agreement with Geron Corporation
(“Geron”) and our subsidiary Asterias Biotherapeutics, Inc.
(“Asterias,” formerly known as BioTime Acquisition Corporation) to
acquire from Geron certain assets related to Geron’s discontinued
human embryonic stem (“hES”) cell programs, consisting primarily of
patents and patent applications and other intellectual property, stem
cell lines, and investigational new drug applications (“IND”) filed
with the FDA for Geron’s Phase I safety study of oligodendrocyte
progenitor cells in patients with complete, subacute spinal cord
injury, as well as its Phase I/II clinical trial of its autologous
cellular immunotherapy program in patients with acute myelogenous
leukemia in complete remission. BioTime believes that the hES assets
that BioTime and its subsidiaries have developed and acquired over the
last several years, when coupled with the Geron assets that will be
acquired by BioTime’s subsidiary Asterias, will assemble within the
BioTime group of companies the world’s premier hES intellectual
property, cell lines, development programs, and related technologies.
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Completed a $5 million financing on April 10, 2013 with a private
investor to provide capital to Asterias as part of the Asset
Contribution Agreement. Asterias also entered into its own agreement
with the same investor to obtain an additional $5 million of financing
to be funded in connection with Asterias’ acquisition of the Geron
assets under Asset Contribution Agreement.
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Entered into a worldwide license agreement with the University of
California, Los Angeles (“UCLA”) for novel technology related to the
treatment of stroke. The licensed technology developed at UCLA uses
one of BioTime’s HyStem® hydrogels to deliver
locally released growth factors to improve recovery from stroke.
Concurrent with the execution of this exclusive license agreement,
BioTime has entered into a Sponsored Research Agreement with UCLA to
support on-going pre-clinical work to advance the understanding of
this technology and develop data in support for the potential filing
of an IND for human clinical trials.
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BioTime subsidiary LifeMap Sciences, Inc. (“LifeMap Sciences”)
released enhancements to its integrated database suite products LifeMap
BioReagents™, LifeMap Discovery™, GeneCards®
and MalaCards and entered into a value-added reseller agreement
with Appistry, Inc., a company that provides big-data computing that
supports life-science and medical analytics at hospitals and medical
research centers and organizations. Appistry will market reports that
include LifeMap Sciences’ GeneCards® and MalaCards
genetic information to clinicians and researchers under a revenue
share arrangement with LifeMap Sciences, based on sales of such
reports. The market for similar data services is growing rapidly,
according to industry reports.
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LifeMap Sciences entered into a commercial relationship with
ProSpec-Tany TechnoGene through which LifeMap Sciences has added 100
select recombinant proteins available for sale to researchers on its LifeMap
BioReagents™ portal.
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BioTime appointed Stephen C. Farrell to the BioTime Board of Directors
and its Audit Committee. Mr. Farrell currently serves as Chief
Executive Officer and Director of Convey Health Solutions (formerly
known as NationsHealth, Inc.), a healthcare business process
outsourcing company headquartered in Sunrise, Florida. Mr. Farrell
brings to our Board significant experience in finance, financial
reporting, accounting and auditing, and in management as a senior
executive of a public healthcare company during a period of
significant growth.
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Submitted protocol to European regulatory authorities for initiation
of human clinical trials of Renevia™ as a medical device for
the delivery of adipose stem cells for reconstructive surgery. The
initiation of human clinical studies is expected this year subject to
approval of the protocol.
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Raised cash proceeds of $16.4 million since January 2013 through the
sale of common shares by BioTime and certain subsidiaries, including
$13.4 million in the first quarter of 2013 and $3 million on April 10,
2013.
Financial Results
Net Loss
Net loss attributable to BioTime, Inc. for the first quarter of 2013 was
$7.7 million or $0.15 per share, compared to a net loss of $5.0 million
or $0.10 per share for the same period of 2012.
Contributing to the increased expenses year-over-year was approximately
$1 million in organization, legal, and start up costs associated with
Asterias. The other subsidiaries combined for approximately $4 million
of other operating losses, with the balance of the operating loss of
approximately $3 million residing in BioTime. Historically BioTime's
subsidiaries have raised capital, received grants, and generated
revenues independently of BioTime to help fund their operations; we
expect the subsidiaries to continue to pursue such financing strategies
in the future.
Revenue
Total net revenue, including license fees (which also include online
database subscription and advertising revenues), royalties from sales of
Hextend®, research product sales, and grant income, on a
consolidated basis, was $0.4 million in the first quarter of 2013, down
$0.2 million from $0.6 million for the same period of 2012. The decrease
in revenue year-over-year in the first quarter 2013 is primarily
attributable to lower grant revenue related to the completion of
BioTime’s research grant from the California Institute for Regenerative
Medicine (“CIRM”) in August 2012, partially offset by subscription and
advertising revenues from LifeMap Science’s online database GeneCards®
which LifeMap Sciences began marketing in May of 2012.
Expenses
Total expense for the first quarter of 2013 was $8.8 million, compared
to a total expense of $6.5 million for the first quarter 2012. Operating
expenses increased $2.3 million year-over-year in the first quarter 2013
due to increased expenses related to the amortization of patent
technology from our previous acquisitions, employee compensation and
headcount-related costs, audit and tax service fees, patent-related and
general legal fees, licenses, patent and trademark related fees,
expenses related to our increased efforts in the ReneviaTM
(formerly HyStem®-Rx) clinical
development program, PanC-DxTM diagnostic
development program in preparation for clinical trials of those
products, and costs attributable to the establishment of the operations
of Asterias and other costs related to the acquisition of the Geron
assets.
Cash Flow
Net cash used in operating activities was $7.0 million for the three
months ended March 31, 2013 compared to $5.7 million for the three
months ended March 31, 2012, reflecting the hiring of additional staff
and increased headcount-related expenses, the rental of a new research
and development facility effective January 2013 associated with the
establishment of the operations of Asterias, increased expense related
to research and development programs in BioTime subsidiaries in
preparation for clinical trials, including programs expanded through
business acquisitions, and specific transaction related legal and
administrative expenses related in large measure to the Asset
Contribution Agreement among BioTime, Asterias, and Geron.
Balance Sheet
Cash and cash equivalents, on a consolidated basis, totaled $9.9 million
as of March 31, 2013, compared with $4.3 million as of December 31, 2012.
During the first quarter of 2013, BioTime and certain subsidiaries
raised gross proceeds of $11.3 million from the sale of 2,537,051
BioTime common shares at a weighted average price of $4.45 per share in
the open market.
In January 2013, BioTime entered into a Stock and Warrant Purchase
Agreement with Romulus Films Ltd. under which BioTime received $5
million for the sale of 1,350,000 BioTime common shares and warrants to
purchase 650,000 additional BioTime common shares with an exercise price
of $5.00 per share and a term expiring in January 2016. The sale of the
BioTime shares and warrants to Romulus was completed through a $2
million tranche funded in January 2013 and a $3 million tranche funded
on April 10, 2013. This $5 million investment will be used to fund
BioTime’s $5 million cash contribution to Asterias under the Asset
Contribution Agreement.
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 fields of stem cells and
regenerative medicine, including a wide array of proprietary PureStem™
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, as part of an integrated database suite that also
includes the LifeMap Discovery™ database of embryonic
development, stem cell research and regenerative medicine, and MalaCards,
the human disease database. LifeMap Sciences also markets BioTime
research products and PanDaTox, an innovative, recently
developed, searchable database that can aid in the discovery of new
antibiotics and biotechnologically beneficial products. Asterias
Biotherapeutics, Inc. is a new subsidiary being used to acquire the stem
cell assets of Geron Corporation, including patents and other
intellectual property, biological materials, reagents and equipment for
the development of new therapeutic products for regenerative medicine.
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.
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BIOTIME, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
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March 31, 2013 (Unaudited)
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December 31, 2012
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ASSETS
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CURRENT ASSETS
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Cash and cash equivalents
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$
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9,896,335
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$
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4,349,967
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Inventory
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52,335
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|
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55,316
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Prepaid expenses and other current assets
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3,018,421
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2,774,196
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Total current assets
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12,967,091
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7,179,479
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Equipment, net
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1,741,664
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1,348,554
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Deferred license and consulting fees
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625,671
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669,326
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Deposits
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118,748
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64,442
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Intangible assets, net
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19,844,219
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20,486,792
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TOTAL ASSETS
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$
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35,297,393
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$
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29,748,593
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LIABILITIES AND EQUITY
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CURRENT LIABILITIES
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Accounts payable and accrued liabilities
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$
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3,901,027
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$
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3,989,962
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Deferred license revenue, current portion
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394,343
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400,870
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Total current liabilities
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4,295,370
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4,390,832
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LONG-TERM LIABILITIES
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Deferred license revenue, net of current portion
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732,210
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768,678
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Deferred rent, net of current portion
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52,174
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57,214
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Other long term liabilities
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235,045
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237,496
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Total long-term liabilities
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1,019,429
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1,063,388
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Commitments and contingencies
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EQUITY
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Preferred Shares, no par value, authorized 1,000,000 shares; none
issued
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-
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-
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Common Shares, no par value, authorized 75,000,000 shares; issued
and outstanding shares; 54,912,781 issued, and 52,551,813
outstanding as of March 31, 2013 and 51,183,318 issued, and
49,383,209 outstanding at December 31, 2012, respectively
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135,594,729
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119,821,243
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Contributed capital
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93,972
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93,972
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Accumulated other comprehensive income/(loss)
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88,867
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(59,570
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)
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Accumulated deficit
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(109,614,976
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)
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(101,895,712
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)
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Treasury stock at cost: 2,360,968 and 1,800,109 shares at March 31,
2013 and at December 31, 2012, respectively
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(10,317,681
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)
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(8,375,397
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)
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Total shareholders' equity
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15,844,911
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9,584,536
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Noncontrolling interest
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14,137,683
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14,709,837
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Total equity
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29,982,594
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|
|
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24,294,373
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TOTAL LIABILITIES AND EQUITY
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$
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35,297,393
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|
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29,748,593
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BIOTIME INC CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
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Three Months Ended
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March 31, 2013
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March 31, 2012
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REVENUES:
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License fees
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$
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349,824
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$
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36,468
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Royalties from product sales
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107,599
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147,402
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Grant income
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90,326
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400,809
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Sale of research products
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66,724
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67,535
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Total revenues
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614,473
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652,214
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Cost of Sales
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(182,749
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)
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(20,268
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)
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Total net revenues
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431,724
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631,946
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EXPENSES:
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Research and development
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(5,395,488
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)
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(4,178,781
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)
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General and administrative
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(3,416,145
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)
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(2,368,705
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)
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Total expenses
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|
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(8,811,633
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)
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(6,547,486
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)
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Loss from operations
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(8,379,909
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)
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(5,915,540
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)
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OTHER INCOME/(EXPENSES):
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Interest income, net
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943
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8,298
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Other expense, net
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(29,579
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)
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(327,095
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)
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Total other expenses, net
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(28,636
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)
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(318,797
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)
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NET LOSS
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(8,408,545
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)
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(6,234,337
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)
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Less: Net loss attributable to the noncontrolling interest
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689,282
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1,260,995
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NET LOSS ATTRIBUTABLE TO BIOTIME, INC. (1) |
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$
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(7,719,263
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)
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$
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(4,973,342
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)
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Foreign currency translation gain
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148,437
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124,089
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TOTAL COMPREHENSIVE LOSS (2) |
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$
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(7,570,826
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)
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$
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(4,849,253
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)
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BASIC AND DILUTED LOSS PER COMMON SHARE (1) |
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$
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(0.15
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)
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$
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(0.10
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)
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC AND
DILUTED
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51,175,649
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|
|
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49,035,788
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(1) Basic and diluted loss per common share is calculated using "Net
loss attributable to BioTime, Inc."
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(2) Comprehensive net loss includes foreign currency translation
gain of $148,437 and $124,089 for the three months ended March 31,
2013 and 2012, respectively arising 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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Copyright Business Wire 2013
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