ID Biomedical reports fiscal 2004 year end results Company achieves
record revenues of CDN$53.7 million VANCOUVER, March 16
/PRNewswire-FirstCall/ -- ID Biomedical Corporation (TSX: IDB;
NASDAQ: IDBE) announced today financial results for the year ended
December 31, 2004, which included record revenues of CDN$53.7
million. Commenting on 2004, Todd Patrick, President of ID
Biomedical said, "The 2004 fiscal year was monumental in terms of
our growth and achievements. We successfully closed the acquisition
of the Shire Pharmaceutical Group's vaccine business for US$120
million in total consideration while maintaining a strong balance
sheet, ending the year with over CDN$100 million in cash and
CDN$370 million in assets. With the recent completion of the sale
and leaseback transactions of two of the Company's facilities, we
project to end the 1st quarter of 2005 with approximately CDN$150
million in cash and cash equivalents." "In 2004, through the
acquisition of these new vaccine assets, ID Biomedical was
transformed from a research and development company to a fully
integrated vaccine business with the infrastructure required to
develop and manufacture our own products. The acquisition resulted
in our first significant revenues. Today, the Company has strategic
and operating assets with significant value and tremendous
opportunity. We believe ID Biomedical is ideally positioned to
become one of the world's key influenza vaccine players," continued
Mr. Patrick. The Company's year-end financial report will be
available on our web site and at http://www.sedar.com/. Highlights
of the Company's progress during 2004 and a general company update
will be discussed on a conference call/web cast to be held
Wednesday March 16 at 5:00pm EST. The presentation can be accessed
by dialing 604-677-8677 or at the Company's website at
http://www.idbiomedical.com/. A recording of the call will be
available until March 30th by dialing 416-640-1917 and entering the
code 21117167 followed by the number sign. CONDENSED FINANCIAL
RESULTS All amounts herein are expressed in Canadian dollars unless
otherwise noted. ID Biomedical recorded a net loss of $39.7 million
($0.94 per share) for the year ended December 31, 2004 compared to
a net loss of $31.8 million ($0.89 per share) for the year ended
December 31, 2003. The results from operations include the
activities of the acquired vaccine business from Shire for the
period of September 10, 2004 through December 31, 2004. For the
year ended December 31, 2004, the Company's revenue totaled $53.7
million compared to $6.8 million for the year ended December 31,
2003. Included in revenue are product sales from our two marketed
products FLUVIRAL(R) and NEISVAC-C. Also included in revenue is
research and development contract revenue, deferred licensing
revenue and other revenue. Product sales revenue in the amount of
$36.1 million was recorded for the year ended December 31, 2004
compared to $0 for the year ended December 31, 2003. This revenue
primarily relates to the sales of the Company's two marketed
vaccines to the Canadian government. Product sales increased as a
result of the Shire acquisition. Research and development contract
revenue in the amount of $13.4 million was recorded for the year
ended December 31, 2004 compared to $4.1 million for the year ended
December 31, 2003. Research and development contract revenue
includes revenue recognized as a result of the Shire Funding
Facility to support the development of the non-flu vaccine
candidates acquired from Shire. Revenue recognized from the Shire
Funding Facility totaled $6.8 million for the year ended December
31, 2004. The Company determined that these amounts are appropriate
to recognize as revenue since the amount and date of repayment of
these advances are not known and there is no requirement to repay
any advances if the early stage, non-flu vaccine candidates
acquired from Shire are not successful. Other research and
development contract revenue totaling $6.6 million in 2004 and $4.1
million in 2003 is a result of agreements executed during 2003 with
Dynport Vaccine Company for the development of an antigen for a
injectable subunit plague vaccine. Previously deferred licensing
revenue in the amount of $2.7 million was recognized for the year
ended December 31, 2004, compared to $2.7 million for the year
ending December 31, 2003. Based on the Company's current licensing
agreements, amortization of deferred licensing revenue is expected
to continue at the present amount through October 2006. The
amortization of deferred licensing revenue does not result in
additional cash to the Company. Other revenue, consisting primarily
of the pandemic readiness fees under an agreement with the
Government of Canada and other fees to store and distribute
vaccines under an agreement with the Quebec Ministry of Health,
totaled $1.5 million for the year ended December 31, 2004 compared
to $0 for the year ended December 31, 2003. Other revenue increased
as a result of the Shire Acquisition. Cost of product sales
includes the expenses related to the production and distribution of
FLUVIRAL(R), the distribution of NEISVAC-C, and other product
related costs. Cost of product sales was $21.4 million for the year
ended December 31, 2004. Prior to the acquisition of Shire, the
Company did not have products sales. Research and development
expenses increased $17.0 million or 54%, to $48.5 million for the
year ended December 31, 2004 compared to the year ended December
31, 2003. The increase in research and development expenses in
2004, compared to the same period in 2003 is a result of the Shire
acquisition, the cost of advancing our lead products in clinical
development, and the funding of our research and early stage
development programs. Included in research and development expenses
is stock-based compensation expense totaling $1.9 million and $1.2
million for the year ended December 31, 2004 and 2003 respectively.
Research and development tax credits and grants include amounts
received or receivable from Technology Partnerships Canada,
National Institutes of Health ("NIH") and provincial government
investment tax credits. Research and development tax credits and
grants was $2.8 million for the year ended December 31, 2004
compared to $2.3 million for the year ended December 31, 2003.
There were $0.9 million in TPC grants recognized for the year ended
December 31, 2004 compared to $1.8 million for the year ended
December 31, 2003. NIH grants totaled $0.8 million for the year
ended December 31, 2004. There were no NIH grants during 2003.
Provincial government investment tax credits totaled $1.2 million
for the year ended December 31, 2004 as compared to $0.6 million
for the year ending December 31, 2003. Selling, general and
administrative expenses increased $8.8 million, or 125% to $15.8
million for the year ended December 31, 2004 compared to the year
ended December 31, 2003. This increase is primarily the result of
the selling and administrative organizations acquired in the Shire
acquisition. Included in the selling, general and administrative
expenses is stock-based compensation expense totaling $2.6 million
and $0.5 million for the years ended December 31, 2004 and 2003
respectively. Depreciation and amortization expense relates to
facilities and equipment and medical technology and other assets.
Depreciation and amortization expense increased $4.7 million, or
113% to $8.8 million for the year ended December 31, 2004 compared
to the year ended December 31, 2003. These increases are directly
related to the value of the assets acquired in the Shire
acquisition. Investment and other income is comprised of interest
income and foreign exchange gains and losses. Investment and other
income decreased $1.8 million resulting in an expense of $0.3
million for the year ended December 31, 2004 compared to income of
$1.5 million for the year ended December 31, 2003. The Company
recorded a foreign exchange loss of $3.0 million for the year ended
December 31, 2004 as compared to a $0.1 million loss for the year
ended December 31, 2003. This foreign exchange loss is directly
related to the Company's investment in US dollars prior to
completion of the Shire acquisition to satisfy the US$60 million
obligation (US$30 million paid at closing on September 9, 2004 and
US$30 million held in escrow and payable on the first anniversary
of closing) of the acquisition. Interest income increased $1.0
million to $2.6 million for the year ended December 31, 2004
compared to the year ended December 31, 2003. These increases in
interest income are a result of increased levels of cash and short
term investments resulting from the Company's 2003 financing
activities. Interest expense increased $1.1 million to $1.2 million
for the year ended December 31, 2004 compared to the year ended
December 31, 2003. The increase in interest expense is a direct
result of the flu advances, received under the Shire Funding
Facility. Consolidated Statements of Operations and Deficit Years
ended December 31, 2004, 2003 and 2002 (expressed in Canadian
dollars)
-------------------------------------------------------------------------
2004 2003 2002 -------------- -------------- --------------
Restated(x) Restated(x) Revenue: Product sales $ 36,073,378 $ - $ -
Research and development contracts 2,749,682 2,697,210 10,884,527
Licensing 13,375,895 4,141,450 - Other 1,462,584 --------------
-------------- -------------- 53,661,539 6,838,660 10,884,527
Expenses and other: Cost of product sales 21,436,661 - - Research
and development 48,543,002 31,568,420 15,214,726 Research and
development tax credits and grants (2,841,078) (2,315,539)
(2,814,555) Selling, general and administrative 15,808,950
7,019,722 5,236,108 Depreciation and amortization 8,806,710
4,139,061 3,884,912 -------------- -------------- --------------
91,754,245 40,411,664 21,521,191 -------------- --------------
-------------- (38,092,706) (33,573,004) (10,636,664) Other income
(expenses): Investment and other income (323,675) 1,489,572 551,663
Interest expense (1,159,883) (36,750) (155,784) Gain on sale of
short-term investment - 1,684,979 - Loss on disposal of medical
technology and other assets (26,744) (1,317,503) Loss on write-down
of short-term investment (3,754,808) -------------- --------------
-------------- (1,510,302) 1,820,298 (3,358,929) --------------
-------------- -------------- Loss before income taxes (39,603,008)
(31,752,706) (13,995,593) Income taxes 103,531 20,330 793,844
-------------- -------------- -------------- Loss for the year
(39,706,539) (31,773,036) (14,789,437) --------------
-------------- -------------- -------------- --------------
-------------- Basic and diluted loss per common share $ (0.94) $
(0.89) $ (0.47) -------------- -------------- --------------
-------------- -------------- -------------- Weighted average
number of common shares outstanding 42,136,010 35,740,070
31,398,139 -------------- -------------- --------------
-------------- -------------- -------------- (x) Restated to
reflect stock based compensation and patent expense Consolidated
Balance Sheets December 31, 2004 and 2003 (expressed in Canadian
dollars)
-------------------------------------------------------------------------
December 31, December 31, 2004 2003 -------------- --------------
Restated(x) Assets Cash and cash equivalents $105,068,973
$156,217,160 Other current assets 44,611,681 3,858,846
-------------- -------------- 149,680,654 160,076,006 Long-term
receivable 468,278 - Facilities and equipment 186,110,643 8,050,339
Investment 413,644 413,644 Medical technology and other assets
33,358,944 24,768,114 Goodwill 771,314 771,314 --------------
-------------- $370,803,477 $194,079,417 --------------
-------------- -------------- -------------- Liabilities and
Shareholders' Equity Current liabilities: 95,978,227 11,063,804
Deferred licensing revenue 11,101,339 3,460,206 Long-term debt
37,043,350 - Obligations under capital leases 18,444 52,209
Shareholders' equity 226,662,117 179,503,198 --------------
-------------- $370,803,477 $194,079,417 --------------
-------------- -------------- -------------- (x) Restated to
reflect stock based compensation and patent expense Consolidated
Statements of Cash Flows Years ended December 31, 2004, 2003 and
2002 (expressed in Canadian dollars)
-------------------------------------------------------------------------
2004 2003 2002 -------------- -------------- --------------
Restated(x) Restated(x) Cash provided by (used in) operations: Loss
for the period $(39,706,539) $(31,773,036) $(14,789,437) Items not
affecting cash: 10,297,205 5,447,989 7,814,042 Net changes in
non-cash working capital balances 25,806,742 3,144,442 (632,678)
-------------- -------------- -------------- Cash used in operating
activities (3,602,592) (23,180,605) (7,608,073) Cash used in
investing activities (81,262,717) 8,118,417 (900,199) Cash provided
by financing activities 40,846,633 158,638,415 3,583,753
-------------- -------------- -------------- Increase (decrease) in
cash and cash equivalents (44,018,676) 143,576,227 (4,924,519) Cash
and cash equivalents, beginning of period 149,087,649 5,511,422
10,435,941 -------------- -------------- -------------- Cash and
cash equivalents, end of period $105,068,973 $149,087,649 $
5,511,422 -------------- -------------- --------------
-------------- -------------- -------------- (x) Restated to
reflect stock based compensation and patent expense About ID
Biomedical ID Biomedical is an integrated biotechnology company
dedicated to the development of innovative vaccine products. It
operates in research, development, manufacturing, sales and
marketing from its facilities in Canada and in the United States.
ID Biomedical is dedicated to becoming a premier vaccine company
with significant marketed products worldwide and an extensive
pipeline in both clinical and preclinical development. ID
Biomedical has a leading position in the Canadian influenza vaccine
market. It received a ten-year mandate from the Government of
Canada in 2001 to assure a state of readiness in the case of an
influenza pandemic and provide influenza vaccine for all Canadians
in such an event. It also currently supplies approximately 75% of
the Canadian government's influenza vaccine purchases. For further
information on ID Biomedical, please visit the Company's website at
http://www.idbiomedical.com/. (x) NeisVac-C is a trademark of
Baxter International Inc. and is used under license. The
information in this news release contains so-called
"forward-looking" statements. These include statements regarding ID
Biomedical's expectations and plans relating to the integration of
the vaccine business acquired from Shire, statements about ID
Biomedical's expectations, beliefs, intentions or strategies for
the future, which may be indicated by words or phrases such as
"anticipate", "expect", "intend", "plan", "will", "we believe", "ID
Biomedical believes", "management believes", and similar language.
All forward-looking statements are based on ID Biomedical's current
expectations and are subject to risks and uncertainties and to
assumptions made. Important factors that could cause actual results
to differ materially from those expressed or implied by such
forward-looking statements include: (i) the company's ability to
successfully integrate the Shire vaccine business; (ii) the
company's ability to successfully complete preclinical and clinical
development of its products; (iii) the company's ability to
manufacture its products; (iv) the seasonality of the flu-vaccine
business and related fluctuations in the company's revenues from
quarter to quarter; (v) decisions, and the timing of decisions,
made by the health regulatory agencies regarding approval of its
products for human testing; (vi) the company's ability to enter
into distribution agreements for its products, and to complete and
maintain corporate alliances relating to the development and
commercialization of its technology and products; (vii) market
acceptance of its technologies and products; and (viii) the
competitive environment and impact of technological change and
other risks detailed in the company's filings with the Securities
and Exchange Commission. ID Biomedical bases its forward-looking
statements on information currently available to it, and assumes no
obligation to update them. For further information, please contact:
Investor Relations/Media Dean Linden Michele Roy (604) 431-9314
(450) 978-6313 DATASOURCE: ID Biomedical Corporation CONTACT:
Investor Relations/Media: Dean Linden, (604) 431-9314, ; Michele
Roy, (450) 978-6313, ; To request a free copy of this
organization's annual report, please go to http://www.newswire.ca/
and click on reports@cnw.
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