BioMS Medical Announces Third Quarter 2009 Results / Toronto Stock Exchange Symbol: MS

EDMONTON, Nov. 12 /PRNewswire-FirstCall/ -- BioMS Medical Corp. (TSX: MS) today announced financial and operational results for the three and nine months ended September 30, 2009.

During the quarter, the exclusive license and collaboration agreement between BioMS Medical and Eli Lilly and Company for dirucotide was terminated with the effect that all commercial rights to dirucotide are returned to BioMS.

"During the third quarter, the Company made significant progress towards completing its termination of the dirucotide clinical trials, and in reducing expenditures," said Kevin Giese, President and CEO of BioMS Medical. "We anticipate that this process of ending the trials, which includes the collecting, and review and analysis of the trial data, should be substantially completed by the end of the year."

Financial Results

The consolidated net income of the Corporation for the three months ended September 30, 2009 was $9.9 million or $0.11 per share compared with consolidated net income of $6.3 million or $0.07 per share for the previous year. The consolidated net income of the Corporation for the nine months ended September 30, 2009 was $10.1 million or $0.11 per share compared with a consolidated net loss of ($0.8) million or ($0.01) per share for the same period in 2008.

Revenue earned from the collaboration agreement in the amount of $20.6 million for the three months and $45.6 million for the nine months ended September 30, 2009 compared to $16.1 million and $40.1 million for the three and nine months ended September 30, 2008. The revenue represents the amortization of deferred revenue from the US$87 million upfront licensing fee payment and the US$10 million development milestone payment received from Lilly from the Agreement that was terminated on September 2, 2009. Deferred revenue is recorded as revenue as the Corporation incurred the costs related to meeting its obligations under the terms of the Agreement.

Total consolidated expenses for the three months ended September 30, 2009 were $5.0 million as compared with $11.8 million in the three months September 30, 2008. Expenses related to the Corporation's direct research and development efforts accounted for $3.7 million or 75% of all expenses as compared with $10.1 million or 86% in 2008. Total consolidated expenses for the nine months ended September 30, 2009 were $30.1 million as compared with $45.4 million in the nine months September 30, 2008. Expenses related to the Corporation's direct research and development efforts accounted for $23.4 million or 78% of all expenses as compared with $32.6 million or 72% in 2008.

At September 30, 2009, cash and cash equivalents and short-term investments totaled $56.3 million as compared to $90.4 million at December 31, 2008. At September 30, 2009, the Corporation had working capital of $54.4 million as compared to $81.3 million at December 31, 2008.

Management estimates that the current working capital is sufficient for the Corporation to meet its obligations to fund the completion costs of the completed clinical trials and ongoing operations beyond 2010.

As at September 30, 2009 there were 91,008,923 Class "A" common shares of the Company issued and outstanding.

About BioMS Medical Corp. -------------------------

BioMS Medical is a biotechnology company engaged in the development and commercialization of novel therapeutic technologies. BioMS Medical's lead technology, dirucotide, is for the treatment of multiple sclerosis. For further information please visit our website at http://www.biomsmedical.com/

This press release may contain forward-looking statements, which reflect the Corporation'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, 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 and other risks detailed from time to time in the Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

BioMS Medical Corp. Interim Consolidated Balance Sheets (Unaudited) ------------------------------------------------------------------------- (expressed in thousands of Canadian dollars) September 30, December 31, 2009 2008 $ $ (Unaudited) Assets Current assets Cash and cash equivalents 53,622 87,826 Short-term investments 2,659 2,614 Goods and services tax recoverable 341 299 Prepaid clinical trial costs 2,482 2,227 Recoverable from collaboration 2,083 267 Other current assets 120 54 --------------------------- 61,307 93,287 Prepaid clinical trial costs - 790 Licensing costs - 5,910 Property and equipment 395 517 --------------------------- 61,702 100,504 --------------------------- --------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities 6,667 12,015 Deferred revenue - 45,605 --------------------------- 6,667 57,620 --------------------------- Shareholders' Equity Share capital 175,714 175,714 Contributed surplus 10,937 8,839 Accumulated deficit (131,616) (141,669) --------------------------- 55,035 42,884 --------------------------- 61,702 100,504 --------------------------- --------------------------- BioMS Medical Corp. Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited) ------------------------------------------------------------------------- (expressed in thousands of Canadian dollars and shares, except per share amounts) Nine-month period ended Three-month period ended September 30, September 30, 2009 2008 2009 2008 $ $ $ $ --------------------------- --------------------------- Revenue earned from collaboration partner 45,605 40,097 20,615 16,096 Less: Research and development expenses (23,317) (32,574) (3,670) (10,092) --------------------------- --------------------------- 22,288 7,523 16,945 6,004 General and administrative expenses (5,885) (11,641) (1,275) (1,252) Amortization of licensing costs (736) (1,103) - (368) Amortization of property and equipment (127) (82) (42) (38) --------------------------- --------------------------- Income (loss) from operations 15,540 (5,303) 15,628 4,346 --------------------------- --------------------------- Other income (expense) Investment income 306 1,877 40 554 Impairment of licensing costs (5,174) (5,174) Foreign exchange (loss) gain (619) 2,652 (546) 1,413 --------------------------- --------------------------- (5,487) 4,529 (5,680) 1,967 --------------------------- --------------------------- Net income (loss) and comprehensive income (loss) 10,053 (774) 9,948 6,313 --------------------------- --------------------------- --------------------------- --------------------------- Basic and diluted net income (loss) per common share 0.11 (0.01) 0.11 0.07 --------------------------- --------------------------- --------------------------- --------------------------- Basic weighted average number of common shares outstanding 91,009 91,261 91,009 91,112 --------------------------- --------------------------- --------------------------- --------------------------- Diluted weighted average number of common shares outstanding 91,009 91,261 91,009 91,919 --------------------------- --------------------------- --------------------------- --------------------------- BioMS Medical Corp Interim Consolidated Statements of Cash Flows (Unaudited) ------------------------------------------------------------------------- (expressed in thousands of Canadian dollars) Nine-month period ended Three-month period ended September 30, September 30, --------------------------- --------------------------- 2009 2008 2009 2008 $ $ $ $ Cash provided by (used in) Operating activities Net income (loss) 10,053 (774) 9,948 6,313 Items not involving cash Stock-based compensation 2,098 2,175 - 7 Amortization of licensing costs 736 1,103 - 368 Amortization of property and equipment 127 81 42 38 Impairment of licensing costs 5,174 - 5,174 - Loss on disposal of property and equipment - 7 - - --------------------------- --------------------------- 18,188 2,592 15,164 6,726 Net change in non-cash working capital items (53,517) 57,762 (26,026) (4,998) --------------------------- --------------------------- (35,329) 60,354 (10,862) 1,728 --------------------------- --------------------------- Investing activities Purchase of property and equipment (7) (269) - (241) Net purchase of short-term investments (45) (66) (7) (2,271) Licensing costs - - - - --------------------------- --------------------------- (52) (335) (7) (2,512) --------------------------- --------------------------- Financing activities Proceeds from issuance of share capital - 91 - - Repurchase of share capital - (1,229) - (241) Share issue costs - - - - --------------------------- --------------------------- - (1,138) - (241) --------------------------- --------------------------- Foreign exchange gain (loss) on cash and cash equivalents held in foreign currency 1,177 1,920 (373) 1,456 --------------------------- --------------------------- (Decrease) increase in cash and cash equivalents (34,204) 60,801 (11,242) 431 Cash and cash equivalents - Beginning of period 87,826 35,428 64,864 95,798 --------------------------- --------------------------- Cash and cash equivalents - End of period 53,622 96,229 53,622 96,229 --------------------------- --------------------------- --------------------------- --------------------------- Cash and cash equivalents consists of Bank accounts 1,337 1,385 1,337 1,385 Interest bearing deposits and securities 52,285 94,844 52,285 94,844 --------------------------- --------------------------- 53,622 96,229 53,622 96,229 --------------------------- --------------------------- --------------------------- ---------------------------

BioMS Medical Corp.

CONTACT: Tony Hesby, Ryan Giese, Amanda Stadel, BioMS Medical Corp.,
[phone], [phone] Fax, E-mail: [e-mail], Internet:
http://www.biomsmedical.com/; James Smith, Investor Relations, [phone]
ext. 229, [phone] Fax, E-mail: [e-mail]