Zomedica Pharmaceuticals Corp. Announces Third Quarter 2016 Financial Results
Focus continues on building research and development pipeline
ANN ARBOR, Mich., Nov. 22, 2016 (GLOBE NEWSWIRE) -- Zomedica Pharmaceuticals Corp. (TSX-V:ZOM) ("Zomedica" or "Company"), a veterinary pharmaceutical company, today reported condensed unaudited interim consolidated financial results for the three and nine months ended September 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 continue to build our unique companion animal health business," stated President and CEO Gerald Solensky Jr. "This quarter represents our first full quarter subsequent to the completion of our Qualifying Transaction resulting in our listing as a Life Sciences Issuer on the TSX Venture Exchange."
- 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.
- On August 25, 2016, Zomedica announced the closing of the first tranche of its non-brokered private placement offering, issuing 3,342,480 common shares for gross proceeds of approximately CDN$5,013,720 or $3,875,500.
- On September 19, 2016, Zomedica announced it was approved for graduation to Tier 1 issuer status from Tier 2 issuer status by the TSX Venture Exchange.
- On October 4, 2016, Zomedica announced the appointment of two animal health industry veterans, Jane Eagleson and Tom Robitaille, to its Board of Directors.
Summary Third Quarter 2016 Results
Zomedica recorded net loss and comprehensive loss for the three months ended September 30, 2016 of $1,042,235 or $0.01 per share, compared with a loss of $715,778 or $0.02 per share for the three months ended September 30, 2015. For the three months ended September 30, 2016, the loss was attributed to research and development ("R&D") expenses of $411,104, the general and administrative ("G&A") expenses of $396,644 and professional fees of $212,684, with no revenues as Zomedica does not currently have an approved product. For the three months ended September 30, 2015, the loss was attributed to the professional fees of $457,182, the R&D expenses of $135,948 and the G&A expenses of $120,583.
Expenditures for R&D for the three months ended September 30, 2016 were $411,104 compared to $135,948 for the three months ended September 30, 2015. The majority of the current period expenses related to contracted outsourced activities of $205,532 and salaries of $136,155 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 compared to the same periods in 2015, due to the ongoing preparation of clinical work to support the opened INADs as well as additional veterinary pharmaceutical candidates and technologies.
G&A expenses for the three months ended September 30, 2016 were $396,644 compared to $120,579 for the three months ended September 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 $229,874 due to the addition of employees in business development and accounting. Other expenses included marketing and investor relations of $60,168 as this was the first full quarter of Zomedica as a public company. 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 September 30, 2016 were $212,684 compared to $457,182 for the three months ended September 30, 2015. The decrease was primarily due to the current period transitioning of the business away from utilizing various consultants and hiring full-time employees, as Zomedica executes the business plan.
Liquidity and Outstanding Share Capital
Zomedica had cash of $3,863,900 as at September 30, 2016 compared to $3,243,710 as at December 31, 2015. The increase in cash during the three and nine months ended September 30, 2016 is mainly a result of the cash flows provided by financing activities, partially offset by cash flows used in operating activities as discussed below. For the three and nine months ended September 30, 2016, cash flows used in operating activities amounted to $1,621,927 and $3,080,122, respectively. The largest use of cash within the operating activities in the current periods was for a deposit of $801,973 related to the full payment of a 62 month lease for an additional leased office space in Ann Arbor. Other major expenses include employees' wages and benefits, and various consultants related to the Qualifying Transaction completed on April 21, 2016 and due to its listing as a Life Sciences Issuer on the TSX Venture Exchange. There were no employees during the prior periods. Zomedica did not have an approved product and therefore did not have revenues.
As at September 30, 2016, Zomedica had an unlimited number of authorized common shares with 83,173,196 common shares issued and outstanding. As at November 22, 2016, Zomedica had 83,173,196 common shares issued and outstanding.
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.
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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.
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