Zomedica Pharmaceuticals Corp. Announces Second Quarter 2016 Financial Results
Research and development activities growing
ANN ARBOR, Mich., Aug. 23, 2016 (GLOBE NEWSWIRE) -- Zomedica Pharmaceuticals Corp. (TSX-V:ZOM) ("Zomedica" or "Company"), a veterinary pharmaceutical company, today reported unaudited condensed consolidated interim financial results for the three and six months ended June 30, 2016. Amounts, unless specified otherwise, are expressed in U.S. dollars and are presented under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS").
"We have been strategically building our team, progressing research and development, increasing business development activities and evolving as a public company," stated President and CEO Gerald Solensky, Jr. "I am proud of our achievements to date, but even more excited for what the future holds."
- On April 21, 2016, Zomedica completed its Qualifying Transaction ("Transaction") with ZoMedica Pharmaceuticals Inc. The shares of Zomedica began trading under the new symbol "ZOM" on Monday May 2, 2016 on the TSX Venture Exchange.
- On May 10, 2016, Zomedica announced that it opened its first Investigational New Animal Drug Application ("INAD") with the U.S. Food and Drug Administration Center for Veterinary Medicine ("FDA-CVM") for ZM-012, an anti-infective therapeutic for companion animals.
- On May 17, 2016, Zomedica announced the completion of a research collaboration agreement that includes an option for an exclusive worldwide animal health license with CTX Technology, Inc. for their peptide-based skin penetration platform technology.
- On July 12, 2016, Zomedica announced the filing of a U.S. provisional application for patent with the U.S. Patent and Trademark Office and opened an INAD with the FDA-CVM for a novel formulation of ZM-006, a pharmaceutical targeting a metabolic disorder in companion animals.
Summary Second Quarter 2016 Results
Zomedica recorded net loss and comprehensive loss for the three months ended June 30, 2016 of $1,064,594 or $0.01 per share, compared with a loss of $102,895 or $0.00 per share for the three months ended June 30, 2015. For the three months ended June 30, 2016, the loss was attributed to research and development ("R&D") expenses of $308,200, the general and administrative ("G&A") expenses of $276,863, listing expenses of $272,354 and professional fees of $201,623, with no revenues as Zomedica does not currently have an approved product. For the three months ended June 30, 2015, the loss was attributed to the professional fees of $41,888, the G&A expenses of $32,690 and the R&D expenses of $28,264.
Expenditures for R&D for the three months ended June 30, 2016 were $308,200 compared to $28,264 for the three months ended June 30, 2015. The majority of the current period expenses related to salaries of $228,436 as Zomedica ramped up activities in its lab including in vitro and in vivo work to support the further development of its intellectual property and preparation of opening its INAD for ZM-012 and ZM-006. The Company did not have a lab or R&D employees in the comparative period. Zomedica expects R&D expenditures throughout 2016 will be higher as activities accelerate.
G&A expenses for the three months ended June 30, 2016 were $276,863 compared to $32,690 for the three months ended June 30, 2015. The increase was primarily due to the ramping up of business, as ZoMedica was incorporated on May 14, 2015. The majority of these current period expenses related to the addition of personnel accounting for salaries of $163,357 and advertising expenses of $35,142 associated with investor and public relations costs. A share-based compensation expense of $2,058 was on account of the deemed issuance of stock options granted to directors and officers of Wise Oakwood Ventures Inc. prior to the Transaction. These options were exercised immediately after the close of the Transaction. Zomedica expects G&A expenditures throughout 2016 will be higher as compared to the same periods in 2015, due to the acceleration of activities subsequent to the closing of the Transaction and due to its listing as a Life Sciences Issuer on the TSX Venture Exchange.
Professional fees for the three months ended June 30, 2016 were $201,623 compared to $41,888 for the three months ended June 30, 2015. The current period expenses relate to the ramping up of business and the use of various consultants including lawyers and accountants in establishing the initial operations, preparing Zomedica to execute the business plan, and the closing of the Transaction and due to its listing as a Life Sciences Issuer on the TSX Venture Exchange. ZoMedica was incorporated on May 14, 2015.
Liquidity and Outstanding Share Capital
Zomedica had cash of $1,733,649 as at June 30, 2016 compared to $3,243,710 as at December 31, 2015. The decrease in cash during the three and six months ended June 30, 2016 is mainly a result of the cash flows used in operating activities as discussed below. For the three months ended June 30, 2016, cash flows used in operating activities amounted to $822,183 and $1,438,195, respectively. The largest use of cash within the operating activities was for employees' wages and benefits, and various consultants related to the Transaction and due to its listing as a Life Sciences Issuer on the TSX Venture Exchange.
As at June 30, 2016, Zomedica had an unlimited number of authorized common shares with 79,430,716 common shares issued and outstanding. As at August 23, 2016, Zomedica had 79,830,716 common shares issued and outstanding, an increase of 400,000 due to the exercise of stock options in the subsequent period.
With U.S. operations based in Ann Arbor, Michigan, Zomedica is a veterinary pharmaceutical company targeting health and wellness solutions for companion animals (canine, feline and equine) through a ground-breaking approach that focuses on the unmet needs of clinical veterinarians. Zomedica is building a diversified portfolio of products comprised of the discovery, development and commercialization of innovative drugs alongside novel drug delivery systems, devices and diagnostics. With multiple clinical veterinarians in executive management, it is Zomedica's mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: uncertainty as to whether our strategies and business plans will yield the expected benefits; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to future clinical trials, regulatory approvals, safety and efficacy of our products, the use of our product, intellectual property protection and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Zomedica Investor Relations Contact
Shameze Rampertab, CPA, CA
Zomedica Media Contact