Sunday, May 19, 2013 Last update: 5:34 AM
Company Tech News as it Breaks
Sophiris Bio Reports Fourth Quarter and Year-End 2012 Financial Results and Key Operational Highlights
Submitted by admin on 2/13/2013 @ 2:00 PM
Companies mentioned in this article:
Sophiris Bio, Inc.
SAN DIEGO, CA and VANCOUVER, Feb. 13, 2013 /PRNewswire/ - Sophiris Bio Inc. (Sophiris, TSX: SHS) (the "Company"), a biopharmaceutical company developing a treatment for benign prostatic hyperplasia (BPH or enlarged prostate), today announced financial results and recent key operational highlights for the fourth quarter and the year-ended December 31, 2012.
Recent Key Operational Highlights for the year-ended 2012
-- The 12 month data from the Company's Phase 2b study (TRIUMPH)
of PRX302 has been accepted for publication by the Journal of
Urology and is currently available online at:
http://www.jurology.com/article/S0022-5347
(12)05468-7/abstract.
-- In the 12 month Phase 2b (TRIUMPH) study, patients receiving
PRX302 for the treatment of BPH experienced a clinically
significant improvement in the subjective symptom score
(International Prostate Symptom Score, or IPSS) and the
objective measure of mean peak urinary flow rate (Qmax)
sustained over 12 months.
-- The Company released data from its transrectal safety study
demonstrating that PRX302 was well tolerated through three
months following a transrectal injection. The results support
the use of a transrectal ultrasound (TRUS) guided injection for
the delivery of PRX302 directly into the prostate. This route
of administration will be used in future clinical trials of
PRX302 in patients with BPH.
-- The Company announced the appointment of Randall E. Woods as
Chief Executive Officer effective August 16, 2012. Mr. Woods
brings almost 40 years of relevant industry experience to
Sophiris, including past roles as CEO at NovaCardia Inc.
(acquired by Merck & Co in 2007) and Corvas International
(acquired by Dendreon in 2003).
-- During the first quarter of 2012 the Company closed an
additional CND $8.3 million investment from our largest
shareholder, Warburg Pincus pursuant to its rights under the
terms of the Investment Agreement dated September 28, 2010.
Financial Results for the Quarter Ended December 31, 2012
The Company reported a net loss of $5.3 million ($0.03 per share, basic and diluted) for the three months ended December 31, 2012, compared to a net loss of $5.7 million ($0.05 per share, basic and diluted) for the three months ended December 31, 2011, representing a decrease of $0.4 million.
Research and Development Expenses
Research and development expenses were $3.3 million for the three months ended December 31, 2012 compared to $4.1 million for the three months ended December 31, 2011 a decrease of $0.8 million. The decrease in research and development expenses is primarily attributable to a $1.5 million decrease in the costs associated with the Company's CMC program for the manufacture and testing of clinical batches of PRX302 clinical trial material. Offsetting this decrease is an increase of $0.8 million of clinical trial costs during the three months ended December 31, 2012 primarily associated with start-up costs for the Company's first pivotal study for the treatment of the symptoms of BPH which the Company expects to initiate in the first half of 2013.
General and Administrative Expenses
General and administrative expenses were $1.3 million for the three months ended December 31, 2012 compared to $1.0 million for the three months ended December 31, 2011. This increase primarily relates to an increase in personnel related costs associated with the build-out of the Company's San Diego headquarters.
Interest Income
The Company earned interest income of approximately $15,000 during the three months ended December 31, 2012 compared to approximately $5,000 for the three months ended December 31, 2011. Interest income earned during a particular period or between periods is a function of interest rates available as well as average cash balances invested in interest bearing securities.
Interest Expense
During the three months ended December 31, 2012, the Company incurred interest expense related to our Oxford loan of $0.4 million of which $0.1 million was related to the accretion of the debt discount, as compared to interest expense of $0.5 million during the three months ended December 31, 2011, of which $0.2 million related to accretion of the debt discount. Cash paid for interest was $0.3 million for the three months ended December 31, 2012 as compared to $0.4 million for the three month period ended December 31, 2011. Interest expense will decline over the term of the loan as the principal is reduced.
Financial Results for the Year-Ended December 31, 2012
The Company reported a net loss of $21.2 million ($0.13 per share, basic and diluted) for the year-ended December 31, 2012, compared to a net loss of $14.2 million ($0.12 per share, basic and diluted) for the year-ended December 31, 2011, representing an increase of $7.0 million.
Research and Development Expenses
Research and development expenses were $13.5 million in the year ended December 31, 2012 and $8.7 million in the year ended December 31, 2011, an increase of $4.8 million. This increase is primarily attributable to an increase of $0.4 million associated with the Company's ongoing Phase 1/2 transrectal BPH clinical trial, which began enrollment in September 2011, an increase of $2.0 million of start-up costs associated with the Company's first pivotal study and an increase of $1.8 million in our costs associated with the transfer and scale up of manufacturing activities for PRX302 clinical trial material.
General and Administrative Expenses
General and administrative expenses were $5.7 million for the year ended December 31, 2012 compared to $4.6 million for the year ended December 31, 2011, an increase of $1.1 million. Included in the Company's general and administrative expenses for the year ended December 31, 2011 is $0.7 million of severance related costs associated with the shut-down of the Company's Vancouver operations. Excluding these severance related costs, the Company's general and administrative expenses increased $1.8 million for the year ended December 31, 2012 as compared to the year ended December 31, 2011. This increase primarily relates to an increase of approximately $0.6 million in personnel related costs associated with the build-out of the Company's San Diego general and administrative group, an increase in professional fees of approximately $0.5 million and an increase of approximately $0.6 million in market research expenses.
Interest Income
The Company earned interest income of $0.1 million during the year ended December 31, 2012 compared to approximately $55,000 for the year ended December 31, 2011. Interest income earned during a particular period or between periods is a function of interest rate available as well as average cash balances invested in interest bearing securities.
Interest Expense
During the year ended December 31, 2012, the Company incurred interest expense related to the Oxford loan of approximately $2.0 million of which $0.6 million was related to the accretion of the debt discount, as compared to interest expense of $0.9 million during the year ended December 31, 2011, of which $0.3 million was related to the accretion of the debt discount. Cash paid for interest was $1.4 million for the year ended December 31, 2012 as compared to $0.5 million for the year ended December 31, 2011. The Oxford loan was originated during July 2011. As such, there was an increase in interest expense related to this loan during the year ended December 31, 2012. In future periods this expense will decline over the term of the loan as the principal is reduced.
Liquidity
As of December 31, 2012, the Company's cash and cash equivalents totaled $9.7 million compared to $23.4 million as of December 31, 2011. The decrease in cash and cash equivalents is primarily the result of cash utilization to fund operations during the year-ended 2012 offset by the receipt of CND $8.3 million from Warburg Pincus under their Investment Agreement. The Company expects that its current cash and cash equivalents will be sufficient to fund its operations into the third quarter of 2013.
Change in Auditors
The Company also announces that, in connection with the relocation of the head office of the Company to San Diego, California it has changed its auditor from PricewaterhouseCoopers LLP (Canada) ("PwC Canada") to PricewaterhouseCoopers LLP (U.S.) ("PwC U.S."). PwC Canada has resigned effective as of January 10, 2013 and PwC U.S. has been appointed as auditor of the Company effective as of the same date. PwC U.S. provided the audit report on the Company's financial statements for the year ended December 31, 2012. The change in auditor has been approved by the Company's Audit Committee and Board of Directors.
For complete financial results, please see the Company's filings at www.sedar.com.
About Sophiris
Sophiris Bio Inc. is a biopharmaceutical company developing a treatment for benign prostatic hyperplasia (BPH or enlarged prostate), which it believes is an unsatisfied market with significant market potential. PRX302, the Company's lead candidate for BPH, is designed to be as efficacious as pharmaceuticals, less invasive than the surgical interventions, and without the sexual side effects experienced with existing treatments. Sophiris is planning to begin the first of two pivotal clinical trials of PRX302 in the first half of 2013. For more information, please visit www.sophirisbio.com.
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Sophiris' current beliefs as well as assumptions made by and information currently available to Sophiris and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Sophiris in its public securities filings; actual events may differ materially from current expectations. Sophiris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Sophiris Bio Inc.
Consolidated Statements of Operations, Comprehensive Loss and Deficit
(Stated in United States Dollars)
For the
For the three months For the year
three months ended ended For the year
ended December December 31, ended
December 31, 31, December 31,
2012 2011 2012 2011
$ $ $ $
Expenses
Research and 4,119,227 13,523,050
development 3,329,180 8,659,806
General and 1,043,867 5,685,160
administrative 1,343,167 4,635,180
4,672,347 5,163,094 19,208,210 13,294,986
Other income
(expense)
Interest 5,275 108,642
income 15,367 55,306
Interest (524,344) (1,958,490)
expense (438,496) (946,201)
Loss on
disposal of - (869)
assets (869) (11,648)
Foreign (6,260) (105,068)
exchange loss (227,391) (13,128)
(651,389) (525,329) (1,955,785) (915,671)
Net loss for (5,688,423) (21,163,995)
the period (5,323,736) (14,210,657)
Other
comprehensive
income
Currency
translation 217,118 131,263
adjustments 23,415 13,923
Total
comprehensive (5,471,305) (21,032,732)
loss for the
period (5,300,321) (14,196,734)
Deficit -
Beginning of (46,824,930) (52,513,353)
the period (68,353,612) (38,302,696)
Deficit - End
of the period (73,677,348) (52,513,353) (73,677,348) (52,513,353)
Basic and
diluted loss (0.05) (0.13)
per share (0.03) (0.12)
Weighted
average number
of outstanding
shares-
Basic and 163,793,203 122,805,885 158,784,096
diluted 121,960,122
Sophiris Bio Inc.
Consolidated Statements of Financial Position
(Stated in United States Dollars)
Restated
December 31, December 31,
2012 2011
$ $
Assets
Current assets
Cash and cash equivalents 9,720,941 23,410,478
Other receivables 71,408 238,906
Deferred financing costs 936,759 -
Prepaid expenses 447,053 284,770
11,176,161 23,934,154
Non-current assets
Property and equipment 162,762 219,740
Intangible assets - 316,099
Other long term assets 44,313 29,495
Total assets 11,383,236 24,499,488
Liabilities
Current liabilities
Accounts payable and accrued liabilities 4,612,650 3,101,548
Current portion of secured promissory
notes 5,894,566 14,456,768
10,507,216 17,558,316
Long-term secured promissory notes 6,006,360 -
Shareholders' equity
Common shares 54,490,667 48,073,120
Common share purchase warrants 7,794,478 5,926,762
Contributed surplus 6,307,944 5,631,987
Currency translation adjustments (46,081) (177,344)
Deficit (73,677,348) (52,513,353)
Total shareholders' (deficit) equity (5,130,340) 6,941,172
Total liabilities and shareholders' equity 11,383,236 24,499,488
Sophiris Bio Inc.
Consolidated Statements of Cash Flows
(Stated in United States Dollars)
For the year ended For the year ended
December 31, December 31,
2012 2011
$ $
Cash flows used in operating
activities
Net loss for the period (21,163,995) (14,210,657)
Items not affecting cash:
Stock-based compensation 675,957 915,432
Accretion expense 633,692 285,159
Depreciation of property and
equipment 81,810 44,328
Amortization of intangible
assets 149,222 201,605
Impairment loss 175,766 -
Loss on disposal of assets 869 11,648
Unrealized foreign exchange
gain (147,924) (23,631)
Interest expense 1,324,798 661,042
Interest income (108,643) (55,306)
Change in non-cash working
capital:
Other receivables 171,985 72,459
Prepaid expenses (161,992) (272,750)
Other long term assets (14,659) (29,665)
Accounts payable and accrued
liabilities 1,512,543 1,085,245
Deferred financing costs (935,869) -
Net cash flows used in
operating activities (17,806,440) (11,315,091)
Cash flows provided by (used
in) investing activities
Interest received 108,643 55,306
Purchase of property and
equipment (25,671) (265,467)
Proceeds from the disposal of
equipment - 11,424
Net cash flows provided by
(used in) investing activities 82,972 (198,737)
Cash flows provided by
financing activities
Cash received on issuance of
promissory notes - 14,645,048
Issuance of common shares from
private placement - -
- net of issurance costs
paid 8,285,262 8,136,666
Issuance of common shares on
exercise of warrants - 77,895
Issuance of common shares on
exercise of stock options - 302,481
Principal payments on notes
payable (3,189,538) -
Interest paid (1,350,049) (542,292)
Net cash flows provided by
financing activities 3,745,675 22,619,798
Effect of exchange rate changes
on cash
and cash equivalents 288,256 (76,729)
Net (decrease) increase in cash
and cash equivalents (13,689,537) 11,029,241
Cash and cash equivalents -
Beginning of the period 23,410,478 12,381,237
Cash and cash equivalents - End
of the period 9,720,941 23,410,478
SOURCE Sophiris Bio, Inc.