MISSISSAUGA, ON, Feb. 7, 2013 /PRNewswire/ - YM BioSciences Inc. (NYSE MKT: YMI) (TSX: YM), today reported operational and financial results for the second quarter of fiscal 2013, ended December 31, 2012.
During the quarter, YM announced a plan of arrangement (the "Arrangement") involving the Company, Gilead Sciences, Inc. ("Gilead") and 3268218 Nova Scotia Limited, a wholly-owned subsidiary of Gilead (the "Purchaser"). Under the Arrangement, the Purchaser will acquire all of the issued and outstanding common shares ("Common Shares") of the Company for cash consideration of U.S.$2.95 per Common Share. In addition, holders of warrants and options will each receive a cash payment equal to the difference between U.S.$2.95 and the exercise price of such warrants or options. The Supreme Court of Nova Scotia has issued a final order approving the Arrangement and assuming all other conditions precedent are satisfied or waived, it is anticipated that the Arrangement will become effective on February 8, 2013.
Summary Financial Results (CDN dollars)
The interim consolidated financial statements and comparative information for the second quarter of fiscal 2013 have been prepared in accordance with International Financial Reporting Standards ("IFRS").
Revenue for the second quarter of fiscal 2013 ending December 31, 2012 was $3.9 million compared to $0.4 million for the second quarter of fiscal 2012 ending December 31, 2011. Revenue for the first six months of fiscal 2013 was $4.2 million compared to $0.6 million for the first six months of fiscal 2012. The increase was due to the sale of nimotuzumab licenses and subsequent recognition of all remaining deferred revenue relating to nimotuzumab licenses in December 2012.
Net finance costs were $5.8 million for the second quarter of fiscal 2013 compared to net finance income of $1.5 million for the second quarter of fiscal 2012. Net finance costs were $5.5 million for the first six months of fiscal 2013 compared to net finance income of $9.0 million for the first six months of fiscal 2012. The changes in net finance income are primarily attributable to changes in the fair value adjustment for USD warrants. Under IFRS, warrants denominated in a different currency than the Company's functional currency must be classified as a financial liability and measured at fair value, with changes reflected in profit or loss. For the second quarter of fiscal 2013, the Company realized a loss of $6.6 million on the revaluation of warrants, compared to a gain of $1.9 million for the second quarter of fiscal 2012. For the first six months of fiscal 2013, the Company realized a loss of $5.0 million on the revaluation of warrants, compared to a gain of $7.3 million for the first six months of fiscal 2012.
Licensing and product development expenses were $6.1 million for the second quarter of fiscal 2013 compared with $7.3 million for the second quarter of fiscal 2012. Licensing and product development expenses were $13.3 million for the first six months of fiscal 2013 compared with $13.7 million for the first six months of fiscal 2012. Licensing and product development expenses are primarily associated with the clinical trials for CYT387.
General and administrative expenses were $3.3 million for the second quarter of fiscal 2013 compared to $1.2 million for the second quarter of fiscal 2012. General and administrative expenses were $5.3 million for the first six months of fiscal 2013 compared to $3.3 million for the first six months of fiscal 2012. The increases in both the three and six months ending December 31, 2013, are due to the additional legal and other costs relating to CYT387 and the Acquisition Agreement.
Net loss for the second quarter of fiscal 2013 was $11.3 million ($0.07 per share) compared to $6.6 million ($0.06 per share) for the same period last year. Net loss for the first six months of fiscal 2013 was $20.0 million ($0.13 per share) compared to $7.5 million ($0.06 per share) for the same period last year.
As at December 31, 2012 the Company had cash and short-term deposits totaling $121.2 million and accounts payable and accrued liabilities totaling $5.3 million compared to $132.5 million and $3.1 million respectively as at June 30, 2012.
As at December 31, 2012 the Company had 157,967,659 common shares and 7,008,751 warrants outstanding.
About YM BioSciences
YM BioSciences Inc. is a drug development company primarily focused on advancing CYT387, an orally administered inhibitor of both the JAK1 and JAK2 kinases, which have been implicated in a number of hematological and immune cell disorders including myeloproliferative neoplasms and inflammatory diseases as well as certain cancers. Positive results have been reported from a Phase I/II trial of CYT387 in 166 patients with myelofibrosis.
This press release may contain forward-looking statements, which reflect YM's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, YM's ability to obtain other approvals in connection with the proposed arrangement; uncertainties as to the timing of the arrangement; the satisfaction of the conditions precedent to the completion of the arrangement; changing market conditions; the successful and timely completion of clinical studies; the establishment of corporate alliances; the impact of competitive products and pricing; new product development; uncertainties related to the regulatory approval process or the ability to obtain drug product in sufficient quantity or at standards acceptable to health regulatory authorities to complete clinical trials or to meet commercial demand; and other risks detailed from time to time in YM's ongoing quarterly and annual reporting. Except as required by applicable securities laws, YM undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
|YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian dollars, unless otherwise noted) (Unaudited)|
|December 31,||June 30,|
|Cash and cash equivalents||$||83,588,628||$||87,140,020|
|Total current assets||121,644,399||132,960,972|
|Property and equipment||49,096||62,118|
|Total non-current assets||424,770||2,691,800|
|Liabilities and Equity|
|Share purchase warrants||11,593,961||7,221,040|
|Total current liabilities||16,883,276||10,668,703|
|Total non-current liabilities||-||1,556,853|
|Total liabilities and equity||$||122,069,169||$||135,652,772|
Approved by the Board and authorized for issue on February 6, 2013:
Tryon M. Williams, Director Dr. Nick Glover, Director
|YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars, unless otherwise noted) (Unaudited)|
|Three months ended||Six months ended|
|December 31,||December 31,|
|Sale of Nimotuzumab licenses||1,989,800||-||1,989,800||-|
|Licensing and product development||6,081,713||7,260,481||13,285,560||13,748,328|
|General and administrative||3,255,177||1,154,883||5,276,876||3,315,031|
|Loss before the undernoted||(5,480,527)||(8,035,247)||(14,395,928)||(16,432,514)|
|Net loss and comprehensive loss for the period||$||(11,313,537)||$||(6,557,778)||$||(19,863,105)||$(7,452,468)|
|Basic and diluted loss per common share||$||(0.07)||$||(0.06)||$||(0.13)||$ (0.06)|
|YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Changes in Equity (Expressed in Canadian dollars, unless otherwise noted) (Unaudited)|
|Balance, June 30, 2012||157,546,793||$||340,173,078||$ 16,712,315||$||(233,458,177)||$||123,427,216|
|Net loss for the period||-||-||-||(19,863,105)||(19,863,105)|
|Transactions affecting owners of the|
|Company, recognized directly in equity:|
|Shares issued on exerciseof options||63,199||163,170||(66,200)||-||96,970|
|Shares issued on exercise of warrants||357,667||564,270||-||-||564,270|
|Fair value of warrants exercised||-||591,063||-||591,063|
|Total transactions affecting owners of the Company||420,866||1,318,503||303,279||-||1,621,782|
|Balance, December 31, 2012||157,967,659||$||341,491,581||$||17,015,594||$||(253,321,282)||$||105,185,893|
|Balance, June 30, 2011||116,681,948||$||264,548,643||$||15,144,062||$||(213,141,438)||$||66,551,267|
|Net loss for the period||-||-||-||(7,452,468)||(7,452,468)|
|Transactions affecting owners of the|
|Company, recognized directly in equity:|
|Shares issued on exercise of options||29,500||38,008||(15,558)||-||22,450|
|Total transactions affecting owners of the Company||29,500||38,008||1,492,126||-||1,530,134|
|Balance, December 31, 2011||116,711,448||$||264,586,651||$||16,636,188||$||(220,593,906)||$||60,628,933|
|YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian dollars, unless otherwise noted) (Unaudited)|
|Six months ended December 31,|
|Cash provided by (used in):|
|Net loss for the period||$||(19,863,105)||$||(7,452,468)|
|Items not involving cash:|
|Depreciation of property and equipment||21,095||33,134|
|Amortization of intangible assets||2,254,008||2,254,008|
|Gain on disposal of property and equipment||(10,636)||-|
|Unrealized (gain)loss on cash and cash equivalents||(233,885)||(1,406,658)|
|Change in fair value of share purchase warrants||4,963,984||(7,264,221)|
|Changes in non-cash working capital balances:|
|Net cash used in operating activities||(12,974,267)||(13,742,838)|
|Proceeds from sale of short-term deposits||35,457,822||35,806,437|
|Purchase of short-term deposits||(27,500,000)||(34,300,000)|
|Additions to property and equipment||(18,537)||(10,220)|
|Proceeds from sale of property and equipment||21,100||-|
|Net cash provided by investing activities||8,527,750||1,805,385|
|Issuance of common shares on exercise of options||96,970||22,450|
|Issuance of common shares on exercise of warrants||564,270||-|
|Net cash provided by financing activities||661,240||22,450|
|Decrease in cash and cash equivalents||(3,785,277)||(11,915,003)|
|Impact of foreign exchange rates on cash||233,885||1,406,658|
|Cash and cash equivalents, beginning of period||87,140,020||32,046,630|
|Cash and cash equivalents, end of period||$||83,588,628||$||21,538,285|
SOURCE YM BioSciences Inc.