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BELLUS Health reports results for third quarter of fiscal 2009

^{Published on 2009-11-10 16:02:07 - Market Wire}
 

 - For the three-month period ended September 30, 2009, BELLUS Health reported a net loss of $5,840,000 ($0.04 per share), compared to a net loss of $11,175,000 ($0.22 per share) for the corresponding period the previous year. For the nine-month period ended September 30, 2009, the net loss amounted to $2,867,000 ($0.02 per share), compared to a net loss of $36,959,000 ($0.75 per share) for the same period last year. - The decrease in the current periods compared to the same periods the previous year is mainly due to a reduction in research and development activities and related workforce, as well as to other additional measures implemented by the Company to reduce its burn rate. - In addition, results for the nine-month period ended September 30, 2009, include a gain on extinguishment of debt in the amount of $17,020,000 resulting from amendments to the terms of BELLUS Health's 2006 and 2007 convertible notes, following the previously announced refinancing of the Company in April 2009. - Results for the nine-month period ended September 30, 2009, also include a net credit for vacant space in the amount of $2,196,000 in relation to the vacant portion of the Company's premises. - As at September 30, 2009, the Company had available cash and cash equivalents of $17,217,000, compared to $10,595,000 at December 31, 2008. The increase is primarily due the completion of the CDN$9.7 million rights offering in September 2009 and the CDN$20.5 million convertible notes financing in April 2009. - On September 10, 2009, the Company successfully completed a CDN$9,687,233 rights offering and issued a total of 52,363,419 common shares at a price of CDN$0.185 per share (the Subscription Price). Under the rights offering, rights were exercised to subscribe for 9,120,177 common shares at the Subscription Price for proceeds of CDN$1,687,233. At the same time, in accordance with the terms of the stand-by purchase agreements entered into by BELLUS Health with Vitus Investments III Private Limited (Vitus), a corporation whose shares are beneficially owned by Mr. Carlo Bellini, and Victoria Square Ventures Inc. (VSVI), a subsidiary of Power Corporation of Canada, each of Vitus and VSVI subscribed for 21,621,621 common shares of BELLUS Health at the Subscription Price for an aggregate of CDN$8,000,000. 

 BELLUS Health Inc. Consolidated Financial Information(1) (in thousands of US dollars, except per share data) Three-month period Nine-month period ended September 30 ended September 30 ------------------------------------------------------------------------- Consolidated Statements of Operations 2009 2008 2009 2008 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Gross sales $ 76 $ 206 $ 272 $ 206 Discounts, returns and cooperative promotional incentives 23 (53) (278) (53) ------------------------------------------------------------------------- Net sales 99 153 (6) 153 Collaboration agreement - - - 205 Reimbursable costs - - - 69 ------------------------------------------------------------------------- 99 153 (6) 427 ------------------------------------------------------------------------- Expenses: Research and development 2,156 5,208 8,635 21,111 Research tax credits and grants (160) (264) (617) (1,128) ------------------------------------------------------------------------- 1,996 4,944 8,018 19,983 General and administrative 1,382 3,200 5,739 9,149 Marketing and selling 845 1,424 3,283 3,459 Reimbursable costs - - - 69 Stock-based compensation 762 439 1,938 2,298 Depreciation of equipement 178 219 519 652 Net credit for vacant space - - (2,196) - ------------------------------------------------------------------------- 5,163 10,226 17,301 35,610 ------------------------------------------------------------------------- Loss before undernoted items (5,064) (10,073) (17,307) (35,183) Interest income 29 145 72 856 Interest and bank charges (80) (109) (232) (181) Accretion expense (1,312) (1,243) (3,663) (3,675) Change in fair value of embedded derivatives (8) 45 8 145 Gain on extinguishment of debt - - 17,020 - Change in fair value of New ABCP Notes 317 - 500 (375) Foreign exchange (loss) gain (15) (216) (318) 644 Other income 293 276 1,053 810 ------------------------------------------------------------------------- Net loss and comprehensive loss (5,840) $(11,175) (2,867) $(36,959) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic net loss per share $ (0.04) $ (0.22) $ (0.02) $ (0.75) Diluted net loss per share $ (0.04) $ (0.22) $ (0.16) $ (0.75) ------------------------------------------------------------------------- ------------------------------------------------------------------------- At At September 30 December 31 Consolidated Balance Sheets 2009 2008 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (unaudited) (audited) Cash and cash equivalents $ 17,217 $ 10,595 Other current assets 4,036 3,667 ------------------------------------------------------------------------- Total current assets 21,253 14,262 Equipment 2,661 3,124 Other long-term assets 7,736 9,030 ------------------------------------------------------------------------- Total assets $ 31,650 $ 26,416 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current liabilities $ 11,785 $ 9,257 Long-term deferred gain and liabilities 33,275 63,211 Shareholders' deficiency (13,410) (46,052) ------------------------------------------------------------------------- Total liabilities and shareholders' deficiency $ 31,650 $ 26,416 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1)Condensed from the Company's unaudited consolidated financial statements.