YM BioSciences Reports Operational and Financial Results for the Second Quarter of Fiscal 2013

MISSISSAUGA, ON, Feb. 7, 2013 /CNW/ - 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,
				2012			2012
Assets
Current assets:
	Cash and cash equivalents		$	83,588,628		$	87,140,020
	Short-term deposits			37,628,393			45,310,288
	Accounts receivable			342,394			252,884
	Prepaid expenses			84,984			257,780
	Total current assets			121,644,399			132,960,972
Non-current assets:
	Property and equipment			49,096			62,118
	Intangible assets			375,674			2,629,682
	Total non-current assets			424,770			2,691,800
Total assets			$	122,069,169		$	135,652,772
Liabilities and Equity
Current liabilities:
	Accounts payable		$	1,124,770		$	803,421
	Accrued liabilities			4,164,545			2,262,972
	Share purchase warrants			11,593,961			7,221,040
	Deferred revenue			-			381,270
	Total current liabilities			16,883,276			10,668,703
Non-current liabilities:
	Deferred revenue			-			1,556,853
	Total non-current liabilities			-			1,556,853
Equity:
	Share capital			341,491,581			340,173,078
	Contributed surplus			17,015,594			16,712,315
	Deficit			(253,321,282)			(233,458,177)
	Total equity			105,185,893			123,427,216
Subsequent events
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,
		2012		2011				2012	2011
Revenue:
	Out-licensing	$	1,866,563	$	380,117		$	2,176,708	$ 630,845
	Sale of Nimotuzumab licenses		1,989,800		-			1,989,800	-
			3,856,363		380,117			4,166,508	630,845
Expenses:
	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
			9,336,890		8,415,364			18,562,436	17,063,359
Loss before the undernoted			(5,480,527)		(8,035,247)			(14,395,928)	(16,432,514)
Finance income			784,671		2,058,174			567,365	8,980,046
Finance costs			(6,617,681)		(580,705)			(6,034,542)	-
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)
					Share capital			Contributed
			Number		Amount			surplus		Deficit			Total
Balance, June 30, 2012			157,546,793		$	340,173,078		$ 16,712,315		$	(233,458,177)		$	123,427,216
Capital transactions
Net loss for the period			-			-		-			(19,863,105)			(19,863,105)
Transactions affecting owners of the
	Company, recognized directly in equity:
		Share-based compensation	-			-		369,479			-			369,479
		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
					Share capital			Contributed
			Number		Amount			surplus		Deficit			Total
Balance, June 30, 2011			116,681,948		$	264,548,643	$	15,144,062		$	(213,141,438)		$	66,551,267
Capital transactions
Net loss for the period			-			-		-			(7,452,468)			(7,452,468)
Transactions affecting owners of the
	Company, recognized directly in equity:
		Share-based compensation	-			-		1,507,684			-			1,507,684
		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,
			2012			2011
Cash provided by (used in):
Operating activities:
	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
		Interest earned		(567,365)			(309,168)
		Gain on disposal of property and equipment		(10,636)			-
		Unrealized (gain)loss on cash and cash equivalents		(233,885)			(1,406,658)
		Share-based compensation		369,479			1,507,684
		Change in fair value of share purchase warrants		4,963,984			(7,264,221)
	Changes in non-cash working capital balances:
		Short-term deposits		(275,927)			(305,277)
		Accounts receivable		(89,510)			(78,535)
		Prepaid expenses		172,796			240,064
		Accounts payable		321,349			(181,892)
		Accrued liabilities		1,901,573			(482,473)
		Deferred revenue		(1,938,123)			(297,036)
	Net cash used in operating activities			(12,974,267)			(13,742,838)
Investing activities:
	Proceeds from sale of short-term deposits			35,457,822			35,806,437
	Purchase of short-term deposits			(27,500,000)			(34,300,000)
	Interest earned			567,365			309,168
	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
Financing activities:
	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.

Enquiries:
James Smith
VP Corporate Affairs
YM BioSciences Inc.
Tel. [phone]
[email protected]