Biophage Pharma - Financial Result
Biophage Pharma Inc has report its first financial result for 2006 - 2007. The company is a high-potential, revenue-driven biotechnology company focused on the development of an integrated approach for the prevention and control of bacterial infections within the food industry.
Overview of operations
Biophage reached an important milestone in its Biosensors Division in the first quarter of 2007 in the development of its compact PDS96 (R) Biosensor. The Corporation is now conducting extensive in-house performance testing and validation of this alpha prototype. Biophage also furthered the development of its four new biosensors: The BacTrapping(R) system, the micro-fluidics system, the “FastBac” biosensor and the e.sensor. In this context, Biophage signed an important collaborative agreement aimed at combining a2sp’s Magic Tag(R) immobilization technology with Biophage’s biosensor platform. Magic Tag(R) uses linkers, which are activated by daylight, for the immobilization of
biomolecules (including phages) onto different surfaces such as magnetic beads, biosensors and micro-array surfaces. Biophage and a2sp also jointly filed a patent application on February 16, 2007, relating to “methods for immobilizing viruses (phages) using photo-reactive linkers”.
In the Therapeutics Division, Biophage concluded initial sales of its LISTEX(TM) product to an important cheese producer in the U.S. Securing this
sale marked the beginning of a business relationship with our first client who intends to develop and use phage therapy as a biological solution to control potential Listeria monocytogenes (Listeria) contamination in cheese. On December 4, 2006, Biophage signed an MOU (memorandum of understanding) with EBI Food Safety (La Hague, Netherlands) for the sale and distribution of LISTEX(TM) in North America. LISTEX(TM) is the first bacteriophage product to receive FDA GRAS (Generally Recognized as Safe) recognition for the control of Listeria contamination in cheese.
In ImmunotoxLabs, Biophage hired Dr. Michel Heyne as director of its Beryllium Reference Lab to meet the increasing demand for Beryllium and MELISA(R) testing. With his vast experience in laboratory testing, this eminent hematologist will help expedite the accreditation process of
Biophage’s Beryllium laboratory by the Quebec National Institute of Public Health (INSPQ).
Financial Results
Contract revenues for the three months ended February 28, 2007 amounted to $107,551 compared with $195,944 in the same three month period in fiscal 2006. The decrease in substantially attributable to the completion of significant projects with important clients, although partially offset by an increase in revenues generated from Beryllium testing. Other income for the first quarter in 2007 reached $824 compared to $601 in the same period in fiscal 2006.
Research and development costs for the three months ended February 28, 2007 (before tax credits) amounted to $135,006, representing a $61,303, or 83% increase over the $73,703 recorded in the same interim period in the preceding fiscal year. The increase is substantially attributable to the hiring of additional staff affected to R&D, including a director for the Corporation’s Biosensors Division, commensurate with Biophage’s overall accelerated efforts in developing the phage therapy segment. Research and development tax credits for the first quarter amounted to $35,000, which compares to $20,000 for the three month period ended February 28, 2006, representing 26% and 27% of
related costs, respectively.
Costs of contracts for the three months ended February 28, 2007 amounted to $117,410, relatively unchanged from the $118,359 incurred during the same period in the preceding fiscal year. The slight decrease in the costs of contracts results from lower subcontracting and laboratory supply costs, which was almost entirely offset by an increase in salaries from the hiring of additional staff between the interim periods.
Biophage’s net loss for the three month period ended February 28, 2007 amounted to $261,287 ($0.01 per share) compared to a net loss of $157,821 ($0.00 per share) for the corresponding three month period in the preceding fiscal year.
Liquidity and Financial Resources
As at February 28, 2007 Biophage had cash and cash equivalents of $426,733 compared to $214,344 at November 30, 2006. The increase in cash and cash equivalents from November 30, 2006 levels is substantially attributable to the private placements completed during the interim period, although partially offset by cash used in operating activities (after changes in non-cash working capital items).
During December 2006 and February 2007, the Corporation issued 4,045,458 units through private placement. Each unit is made up of one common share and one common share purchase warrant, whereby each common share purchase warrant is exercisable for a period of two years at an exercise price of $0.17 per common share. The 4,045,458 shares were issued for a total cash consideration of $525,910. More detailed information regarding the foregoing can be found in the interim unaudited consolidated financial statements and related management
discussion and analysis which have been filed today on SEDAR at www.sedar.com.
Granting of Stock Options
On April 27, 2007, the Corporation’s Board of Directors granted stock options to purchase an aggregate 1,114,000 common shares of the Corporation at an exercise price of $0.12 per share to certain directors, employees and consultants of the Corporation, all of which vest immediately other than 150,000 options that will vest on the first anniversary of the grant and 150,000 options that will vest on the second anniversary of the grant. The grant of such stock options is made in accordance with the stock option plan of the Corporation. The granted options will expire on April 27, 2012.
About Biophage Pharma Inc.
Biophage Pharma is a high potential, revenue-driven Canadian biotechnology company focused on the development of innovative phage-based
products and technologies for the detection, prevention and control of bacterial infections. Founded in 1995, Biophage operates three divisions:
(1) The Biosensors division for the development and commercialization of Biosensors, more particularly a portable PDS96(R) Biosensor which is now in the pre-commercialization stage; (2) The phage therapy division for the prevention and control of bacterial contaminations in the medical, veterinary and environment fields; (3) The Immunotox Labs division, which provides services in Immunogenicity and Immunotoxicity, Beryllium sensitivity testing and MELISA(R) testing for the detection of sensitization to more than 200 different allergens including metals, penicillin, gluten and pollens.
Source: www.biophagepharma.net www.immunotoxlabs.com
