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BioSyntech announces first quarter fiscal 2010 financial results

^{Published on 2009-08-14 14:45:42, Last Modified on 2009-08-14 14:45:54 - Market Wire}
 

 LAVAL, QC, Aug. 14 /CNW/ - BioSyntech, Inc. (TSX: BSY), a biotechnology company developing biotherapeutic thermogels for regenerative medicine, today announced its financial and operational results for the first quarter of fiscal 2010, ended June 30, 2009. "This has been a very successful quarter for the Company. We achieved a major milestone, releasing positive data from an interim analysis of patients in our Canadian/European pivotal trial for BST-CarGel(R), our lead product for cartilage repair," said Ms. Jeanne Bertonis, Chief Executive Officer for BioSyntech. "In addition, we completed the first stage of a financing transaction that will allow us to continue the pivotal trial, as well as plan and execute the strategic initiatives that we are developing with PricewaterhouseCoopers; final results from this trial are anticipated in the summer of calendar year 2010." Recent Highlights - Reported statistically significant results from an analysis of tissues biopsied from the knees of 22 patients who completed their 12 month follow-up in the BST-CarGel(R) randomized clinical trial. - Raised $1,400,000 in a non-brokered private placement consisting of 140,000 units of BioSyntech, each comprised of $10 principal amount of subordinated secured convertible debentures and 91 common share purchase warrants at a price of $10 per Unit. - Appointed Ms. Jeanne Bertonis to the position of Chief Executive Officer. - Appointed Ms. Antoinette Lizzi to the position of Chief Financial Officer. Financial Review For the three-month period ended June 30, 2009, revenues were $54,980, compared to revenues of $12,368 for the same period in the previous year. The increase in revenues was mainly due to one sale of instrumentation product (Mach-1) during the quarter ended June 30, 2009. Research and development ("R&D") expenses totalled $762,564 for the first quarter of fiscal 2010, compared to $1,506,754 for the comparable quarter a year ago. The decrease was mainly due to a reduction in spending for research contracts and lower expenses, mostly in remuneration and consumables, following a restructuring of the Company's activities in the fiscal year ended March 31, 2009. The Company anticipates that the research and development expenses will fluctuate as its lead product will evolve in more advanced clinical development stages. General and administrative expenses were $623,237 for the three-month period ended June 30, 2009 compared to $849,644 for the three-month period ended June 30, 2009. The overall decrease in these expenses is due to lower compensation costs following a restructuring of the Company's activities in the fiscal year ended March 31, 2009, offset by higher professional fees. The accretion in the carrying value of the convertible debenture and interest was $1,151,752 for the quarter ended June 30, 2009 compared to nil for the three-month period ended June 30, 2008. The loss for the three-month period ended June 30, 2009 amounted to $2,659,743 ($0.03 per share), compared to $2,336,244 ($0.02 per share) for the three-month period ended June 30, 2008. As of June 30, 2009, the Company had cash and cash equivalents in the amount of $1,679,882 compared to $3,803,036 at March 31, 2009. However, the Company received gross proceeds of $1,400,000 from the financing which closed on August 14, 2009. The Company's Management's Discussion and Analysis is available on the BioSyntech website at [ www.biosyntech.com ] and with the Company's regulatory filings at [ www.sedar.com ]. About BioSyntech BioSyntech is a medical device company specialized in the development, manufacturing and commercialization of advanced biotherapeutic thermogels for regenerative medicine (tissue repair) and therapeutic delivery. BioSyntech's platform technology is a family of hydrogels called BST-Gel(R), some of which are liquid at low temperature and solid at human body temperature. These gels can be injected or applied to a specific local site and offer beneficial properties for the local repair of damaged tissue such as cartilage, bone and chronic wounds and provide the benefit of avoiding invasive surgery. For additional information, visit [ www.biosyntech.com ]. Forward-Looking Statements This press release contains forward-looking statements and information which are subject to material risks and uncertainties. Such statements are not historical facts and are based on the current expectations of management. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking information. These risks include, but are not limited to, those associated with our capacity to finance our activities, the adequacy, timing, and results of our clinical trials, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company's products, the availability of government and insurance reimbursements for the Company's products, the strength of intellectual property, the success of research and development programs, reliance on subcontractors and key personnel, and other risks and uncertainties detailed from time-to-time in our filings with the Canadian securities commissions. Readers should not place undue reliance on the forward-looking information, given that (i) our actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions which were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, could prove to be inaccurate. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in the Company's annual report and other documents filed from time to time with the Canadian securities commissions which are available at [ www.sedar.com ]. These statements speak only as of the date they are made, and we assume no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.

For further information: James Smith, The Equicom Group, (416) 815-0700 x229, [ Jsmith@equicomgroup.com ]