“During the quarter we prepared to initiate our two randomized Phase II trials for nimotuzumab, which concentrate on two forms of cancer typically treated with radiation-containing regimens. These trials are the cornerstone of YM’s registration program for this drug, driven by prior data indicating nimotuzumab’s potential to maximize the benefits of radiotherapy while avoiding the toxic side-effects of the other EGFR-targeting drugs,” said David Allan, chairman and chief executive officer of YM BioSciences. “In addition to YM’s internal clinical strategy, we continue to benefit from the network of cooperative relationships for the development of nimotuzumab which is undertaking a broad, late-stage, clinical program for this drug.”
Financial Results
Total revenue for the first six months of fiscal 2009, ended December 31, 2008 was CAD3.9 million against CAD3.7 million for the first six months of fiscal 2008, ended December 31, 2007. The increase in revenue is due to the receipt of a USCAD500 thousand milestone payment from one of the company’s licensees.
General and administrative expenses were CAD1.2 million for the second quarter of fiscal 2009 against CAD2.1 million for the second quarter of fiscal 2008. General and administrative expenses were CAD2.3 million for the first six months of fiscal 2009 against CAD4.1 million for the first six months of fiscal 2008.
Licensing and product development expenses were CAD4.4 million for the second quarter of fiscal 2009 against CAD4.2 million for the second quarter of fiscal 2008. Licensing and product development expenses were CAD8.3 million for the first six months of fiscal 2009 against CAD7.8 million for the first six months of fiscal 2008.
Costs associated with development activities for nimotuzumab increased by CAD1.2 million to CAD2.2 million and by CAD1.3 million to CAD3.3 million for the three and six months ended December 31, 2008 respectively, compared to the same periods in the prior year. The increase in expenses is related to preparation for the two new clinical trials and final payments for the trial in colorectal cancer.
Costs associated with development activities for AeroLEF(TM) decreased by CAD0.2 million to CAD0.6 million for the three month period ended December 31, 2008 compared to the same period in the prior year. For the six month period ended December 31, 2008 costs were CAD1.1 million, similar to the same period in the prior year.
Net loss for the first six months of fiscal 2009 was CAD6.3 million (CAD0.11 per share) compared to CAD8.1 million (CAD0.15 per share) for the same period last year.
As at December 31, 2008 the company had cash and cash equivalents and short-term deposits totaling CAD50.1 million and payables and accrued liabilities totaling CAD2.1 million compared to CAD58.1 million and CAD2.0 million respectively at June 30, 2008.
As at December 31, 2008 the company had 58,216,309 common shares outstanding, of which 2,380,953 common shares are held in escrow to be released contingent upon the completion of certain milestones.