Sophiris Bio Reports Second Quarter Financial Results

SAN DIEGO and VANCOUVER, Aug. 13, 2012 /CNW/ - Sophiris Bio Inc. (Sophiris, TSX: SHS), a urology company developing a late-stage, highly targeted treatment for benign prostatic hyperplasia (BPH or enlarged prostate), today announced financial results for the three and six months ended June 30, 2012.

Quarter Ended June 30, 2012

The Company reported a net loss of $5.7 million ($0.03 per share) for the three months ended June 30, 2012, compared to a net loss of $3.3 million ($0.03 per share) for the three months ended June 30, 2011, representing an increase of $2.4 million. The increase in net loss was driven primarily from an increase in total operating expenses of $1.8 million over the same period in 2011, as a result of our increased research and development activities of PRX302, principally our on-going Transrectal study and clinical material manufacturing expenses.

Research and Development Costs

Research and development costs were $3.7 million for the three months ended June 30, 2012, versus $1.7 million for the three months ended June 30, 2011, an increase of $2.0 million. The increase in research and development expenses is primarily attributable to PRX302, specifically the ongoing Transrectal study and clinical material manufacturing expenses.

General and Administrative Costs

General and administrative costs for the three months ended June 30, 2012, were $1.4 million, a decrease of $0.2 million from the $1.6 million incurred during the three months ended June 30, 2011. For the three months ended June 30, 2011, included as a component of our general and administrative expenses is $0.7 million of severance related costs associated with the shut-down of our Vancouver operations. When the severance related costs are excluded from our operating results for the three months ended June 30, 2011, our general and administrative expenses increased $0.5 million for the three months ended June 30, 2012 compared to the three months ended June 30, 2011, primarily as a result of an increase in personnel related costs associated with the build-out of our La Jolla general and administrative group.

Interest Income

Interest income increased approximately $20,000 in the three months ended June 30, 2012 compared to the three months ended June 30, 2011. The increase in interest income was due to the movement of our cash balances into higher yielding interest bearing accounts during the three months ended June 30, 2012.

Interest Expense

During the three months ended June 30, 2012, the Company incurred interest expense related to the Company's secured promissory note with Oxford Financial LLC of $0.5 million. The secured promissory note was originated during July 2011 and therefore there was no interest expense related to this loan during the three months ended June 30, 2011.

Six months ended June 30, 2012

The Company reported a net loss of $10.2 million ($0.07 per share) for the six months ended June 30, 2012, compared to a net loss of $5.5 million ($0.05 per share) for the six months ended June 30, 2011, representing an increase of $4.7 million. The increase in net loss was driven primarily from an increase in total operating expenses of $3.7 million over the same period in 2011, as a result of our increased research and development activities of PRX302, principally our on-going Transrectal study and clinical material manufacturing expenses.

Research and Development Costs

Research and development costs were $6.8 million for the six months ended June 30, 2012, versus $3.0 million for the six months ended June 30, 2011, an increase of $3.8 million. The increase in research and development expenses is primarily attributable to PRX302, specifically the on-going Transrectal study and clinical material manufacturing expenses.

General and Administrative Costs

General and administrative costs for the six months ended June 30, 2012, were $2.4 million, a decrease of $0.1 million from the $2.5 million incurred during the six months ended June 30, 2011. For the six months ended June 30, 2011, included as a component of our general and administrative expenses is $0.7 million of severance related costs associated with the shut-down of our Vancouver operations. When the severance related costs are excluded from our operating results for the six months ended June 30, 2011, our general and administrative expenses increased $0.6 million for the six months ended June 30, 2012 compared to the same period in 2011. This increase primarily relates to an increase in personnel related costs associated with the build-out of our La Jolla general and administrative group and costs associated with our recent name change.

Interest Income

Interest income increased approximately $19,000 in the six months ended June 30, 2012 compared to the six months ended June 30, 2011. The increase in interest income was due to the movement of our cash balances into higher yielding interest bearing accounts during the quarter ended June 30, 2012.

Interest Expense

During the six months ended June 30, 2012, the Company incurred interest expense related to the Company's secured promissory note with Oxford Financial LLC of $1.0 million. The secured promissory note was originated during July 2011 and therefore there was no interest expense related to this loan during the six months ended June 30, 2011.

For complete financial results, please see our filings at www.sedar.com.

About Sophiris

Sophiris Bio Inc. is a urology company developing a late-stage, highly targeted treatment for benign prostatic hyperplasia (BPH or enlarged prostate), an unsatisfied market with blockbuster 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 seen with existing treatments. Sophiris is planning to begin a pivotal trial by the end of 2012. Sophiris is advised by world-leading urologists, backed by experienced investors, and led by a team that has achieved more than twenty drug approvals including several blockbusters. 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.
Condensed Consolidated Statement of Operations, Comprehensive Loss and Deficit
(Stated in United States Dollars - Unaudited)

	For the three months ended June 30,			For the six months ended June 30,
	2012	2011		2012	2011
	$	$		$	$
Expenses
Research and development	3,691,683	1,660,606		6,782,857	2,996,975
General and administrative	1,355,881	1,602,126		2,361,706	2,490,543
	5,047,564	3,262,732		9,144,563	5,487,518
Other income (expense)
Interest income	36,312	16,643		48,662	29,793
Interest expense	(519,175)	-		(1,037,778)	-
Foreign exchange loss	(158,051)	(67,425)		(83,809)	(90,255)
	(640,914)	(50,782)		(1,072,925)	(60,462)
Net loss for the period	(5,688,478)	(3,313,514)		(10,217,488)	(5,547,980)
Other comprehensive income
Currency translation differences	(257,296)	43,424		(103,354)	304,397
Total comprehensive loss for the period	(5,945,774)	(3,270,090)		(10,320,842)	(5,243,583)
Deficit - Beginning of the period	(57,042,363)	(40,537,162)		(52,513,353)	(38,302,696)
Deficit - End of the period	(62,730,841)	(43,850,676)		(62,730,841)	(43,850,676)
Basic and diluted loss per share	(0.03)	(0.03)		(0.07)	(0.05)
Weighted average number of outstanding shares-
Basic and diluted	163,793,203	121,541,859		153,719,943	121,441,172

 

Sophiris Bio Inc.
Condensed Consolidated Statement of Financial Position
(Stated in United States Dollars - Unaudited)

								June 30,		December 31,
								2012		2011
								$		$
	Assets
	Current assets
		Cash and cash equivalents						22,152,519		23,410,478
		Other receivables						117,383		238,906
		Prepaid expenses						100,841		284,770
								22,370,743		23,934,154
	Non-current assets
		Property and equipment						200,379		219,740
		Intangible assets						217,861		316,099
		Other long term assets						35,194		29,495
	Total assets							22,824,177		24,499,488
	Liabilities
	Current liabilities
		Accounts payable and accrued liabilities						3,234,279		3,101,548
		Current portion of secured promissory notes						5,622,171		14,456,768
								8,856,450		17,558,316
	Long-term secured promissory notes							8,718,455		-
	Shareholders' equity
		Common shares						54,490,667		48,073,120
		Common share purchase warrants						7,794,477		5,926,762
		Contributed surplus						7,779,542		7,435,862
		Currency translation differences						(2,084,573)		(1,981,219)
		Deficit						(62,730,841)		(52,513,353)
		Total shareholders' equity						5,249,272		6,941,172
	Total liabilities and shareholders' equity							22,824,177		24,499,488

 

Sophiris Bio Inc.
Condensed Consolidated Statement of Cash Flows
(Stated in United States Dollars - Unaudited)

		For the six months ended June 30,
		2012	2011
		$	$
Cash flows used in operating activities
Net loss for the period		(10,217,488)	(5,547,980)
Adjustments to reconcile net loss to net cash used in  operating activities
	Stock-based compensation	343,680	536,545
	Accretion expense	328,796	-
	Depreciation of property and equipment	40,082	9,119
	Amortization of intangible assets	99,120	102,050
	Unrealized foreign exchange (gain) loss	(301,436)	464,151
	Interest expense	708,982	-
	Interest income	(48,662)	(29,794)
Change in non-cash working capital:
	Other receivables	154,463	99,445
	Prepaid expenses	184,056	(373,691)
	Other long-term assets	(5,784)	(27,010)
	Accounts payable and accrued liabilities	133,185	(670,956)
	Accrued interest	(3,524)	-
Net cash flows used in operating activities		(8,584,530)	(5,438,121)
Cash flows used in investing activities
Interest received		17,681	29,794
Purchase of property and equipment		(20,718)	(159,140)
Net cash flows used in investing activities		(3,037)	(129,346)
Cash flows from financing activities
Issuance of common shares from private placement
	- net of issurance costs paid	8,285,262	-
Issuance of common shares on exercise of warrants		-	77,895
Issuance of common shares on exercise of stock options		-	302,481
Principal payments on secured promissory notes		(444,940)	-
Interest paid		(712,504)	-
Net cash flows from financing activities		7,127,818	380,376
Effect of exchange rate changes on cash
	and cash equivalents	201,790	(138,250)
Net decrease in cash and cash equivalents		(1,257,959)	(5,325,341)
Cash and cash equivalents - Beginning of the period		23,410,478	12,381,237
Cash and cash equivalents - End of the period		22,152,519	7,055,896

 

 

SOURCE: Sophiris Bio, Inc.

Lauren Glaser
Investor Relations
The Trout Group
646-378-2972
[email protected]  

James Beesley
Investor Relations
Sequoia Partners
778-389-7715
[email protected] 

Michael Moore
Investor Relations
Equicom Group
619-467-7067
[email protected]