Thallion Announces 2013 Second Quarter Operating Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 07/25/13 -- Thallion Pharmaceuticals Inc. (TSX VENTURE: TLN) today announced its operational and financial results for the 2013 second quarter ended May 31, 2013.
As announced on June 18, 2013, and again on July 10, 2013 following the execution of an amendment to the Acquisition Agreement (the "Agreement"), BELLUS Health Inc. (BELLUS Health) has agreed to acquire the Company by way of a court supervised plan of arrangement (the "Arrangement"). Under the terms of the amended Agreement, BELLUS Health has offered approximately $6.332 million in cash, or $0.1765 per share (on a fully-diluted basis), subject to certain adjustments as described below, and one contingent value right (CVR) per common share, entitling the holder thereof to: (A) its pro rata share of 100% of any additional purchase price consideration to be received from Premium Brands Holding Corp. in 2016 (which could generate up to approximately $1.45 million) (or $0.0404 per CVR), (B) its pro rata share of 5% of the Shigamabs® revenue generated or received by BELLUS Health, including from any sale or other use of the Shigamabs® technology, capped at $6.5 million (or $0.1812 per CVR), and © its pro rata share of 100% of any net proceeds generated from the licensing, selling or otherwise commercializing of (i) diagnostic products or services using certain Caprion Proteomics Inc. products, and (ii) all issued patents or pending patents pertaining to such Caprion Proteomics Inc. products, in respect of which Thallion has an ownership interest or monetary entitlement. An annual and special meeting of Thallion shareholders to consider and approve the Arrangement is scheduled for 10 am on August 6, 2013.
"With the help of our financial advisors and the support of our board, we concluded that the proposed transaction with BELLUS Health would generate the best value for our shareholders and offer a compelling opportunity for the future development of Shigamabs®," said Dr. Allan Mandelzys, Chief Executive Officer of Thallion. "The up-front cash payment that our shareholders will receive under the Arrangement along with the possibility for future consideration under the terms of the amended CVRs, demonstrate not only the current value, but the potential added value to be realized from this transaction."
Financial Highlights
Collaboration and licensing revenues for the three-month and six-month periods ended May 31, 2013, were nil and $9,656,256 respectively, compared to $532,036 and $1,148,593 for the three-month and six-month periods ended May 31, 2012. Pursuant to the early termination of the development and license agreement with LFB Biotechnologies ("LFB") in February 2013, the Company will not receive any further payments under this agreement and consequently, the deferred revenue balance of $9,656,256 was recognized as collaboration and licensing revenues in the first quarter of 2013.
Research and development (R&D) expenses before tax credits for the three-month and six-month periods ended May 31, 2013 were $662,306 and $1,132,509 respectively, compared to $895,470 and $1,924,033 for the three-month and six-month periods ended May 31, 2012. This reflects a decrease in costs of $233,164 or 26% in the three-month period ended May 31, 2013, and a decrease in costs of $791,524 or 41% in the six-month period ended May 31, 2013. These decreases are the result of reduced clinical trial expenses, reduced manufacturing costs and overall cost reductions, offset by net employee severance and termination costs related to the Company's corporate restructuring.
General and administrative (G&A) expenses for the three-month and six-month periods ended May 31, 2013 were $517,423 and $1,158,970 respectively, compared to $626,731 and $1,239,859 for the same periods in 2012. These decreases are primarily due to the reversal of bonus provisions for executives and overall cost reductions, offset by net employee severance and termination costs related to corporate restructuring.
The Company recorded a net loss of $1,098,472 or $0.03 per share in the three-month period ended May 31, 201 3, compared with $723,971 or $0.02 per share in the corresponding period in 2012. For the six-month period ended May 31, 2013, the Company recorded net earnings of $7,673,340 or $0.24 per share, compared to a net loss of $1,559,225 or $0.05 per share for the same period last year. This increase in net earnings in the first half of 2013 is largely attributable to the recognition of $9,656,256 in collaboration and licensing revenues as a result of the previously mentioned early termination of the development and license agreement with LFB.
As at May 31, 2013, the Company's unrestricted cash position amounted to $9,062,707, which consists of cash and short-term investments. The Company's liquidity availability amounted to $10,276,558 compared with $11,289,797 on November 30, 2012. The decrease in liquidity is primarily due to the use of cash related to operations in addition to employee severance and termination payments made during the six month period ended May 31, 2013. The Company believes that its cash position will be sufficient to finance its reduced research and development expenditures, operations and capital requirements for at least the next twelve months.
As of July 25, 2013, the Company had 32,194,566 common shares outstanding and a total of 3,676,450 stock options remain outstanding.
About Thallion Pharmaceuticals Inc.
Thallion Pharmaceuticals Inc. (TSX VENTURE: TLN) is a biotechnology company developing pharmaceutical products in the areas of infectious disease and oncology. The Company's lead clinical program Shigamabs® is a dual antibody product for the treatment of Shiga toxin-producing E. coli bacterial infections and has recently completed a Ph II clinical trial. Additional information about Thallion can be obtained at .
Forward-Looking Statements
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements reflect Thallion's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, risks relating the Arrangement, the results expected to be achieved from the successful completion of the Arrangement and the ability to obtain all required approvals and consents and otherwise satisfy all other conditions to complete the Arrangement. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Thallion undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Financial results included below:
Contacts:
Michael Singer
Chief Financial Officer
(514) 940-3600
(514) 336-2343 (FAX)
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Datum: 25.07.2013 - 21:00 Uhr
Sprache: Deutsch
News-ID 282015
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Biotech
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