ANN ARBOR, Mich., May 11, 2017 (GLOBE NEWSWIRE) -- Zomedica Pharmaceuticals Corp. (TSX-V:ZOM) (“Zomedica” or “Company”), a veterinary pharmaceutical and health care solutions company, today reported condensed unaudited interim consolidated financial results for the three months ended March 31, 2017. Amounts, unless specified otherwise, are expressed in U.S. dollars and presented under International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”).
“During the first quarter of 2017 we announced our fourth therapeutic product candidate and our first canine cancer diagnostic candidate, adding depth to our product pipeline,” stated Chairman and CEO Gerald Solensky Jr. “We will aggressively advance the product pipeline in order to bring ongoing value to our shareholders.”
- On January 5, 2017, Zomedica announced a research collaboration agreement with Celsee Diagnostics, Inc. to test the feasibility of Celsee’s liquid biopsy technology for veterinary application as a canine cancer diagnostic.
- On January 17, 2017, Zomedica named Best Start-up 2016 for its product pipeline, equity funding, TSXV listing, and strategic personnel additions in 2016 by Animal Pharm, a provider of online services for animal health business intelligence, as part of their annual awards program.
- On January 30, 2017, Zomedica announced that it opened its fourth Investigational New Animal Drug (“INAD”) application with the FDA-CVM for ZM-011.
- On January 30, 2017, Zomedica disclosed that ZM-006 is a transdermal gel delivering its active pharmaceutical ingredient methimazole.
- On January 31, 2017, Zomedica launched its Voice of the Vet™ customer engagement program to leverage insights from the veterinary community to influence development of companion animal health solutions.
- On February 23, 2017, Zomedica announced that Robert W. DiMarzo joined the company as Executive Vice President of Global Strategy. Mr. DiMarzo brings more than 25 years of animal health leadership experience with industry leaders such as Pfizer Animal Health, now Zoetis.
- On April 10, 2017, Zomedica announced the closing of the second and final tranche of a previously announced non-brokered private placement offering, issuing 2,902,682 common shares at a price of CDN$1.50 for aggregate gross proceeds of approximately CDN$4,354,025 or $3,250,000.
- On April 24, 2017, Zomedica announced that it has filed a registration statement with the U.S. Securities and Exchange Commission on Form S-1 relating to the resale or other disposition by selling shareholders of up to 76,625,742 of its common shares and will seek approval for listing on the NYSE MKT.
Summary First Quarter 2017 Results
Zomedica recorded net loss and comprehensive loss for the three months ended March 31, 2017 of $1,832,736 or $0.02 per share, compared to a loss of $931,642 or $0.01 per share for the three months ended March 31, 2016.
For the three months ended March 31, 2017, the loss was attributed to general and administrative (“G&A”) expenses of $827,025, research and development (“R&D”) expenses of $616,449 and professional fees of $38,536, with no revenues as Zomedica does not currently have an approved product. For the three months ended March 31, 2016, the loss was attributed to R&D expenses of $222,712, G&A expenses of $452,521 and professional fees of $244,837.
G&A expenses for the three months ended March 31, 2017 were $827,025 compared to $452,521 for the three months ended March 31, 2016. The increase was primarily due to the ramping up of business, as ZoMedica Pharmaceuticals Inc. was incorporated on May 14, 2015. The majority of these current period expenses related to the addition of personnel accounting for salaries of $556,863, which included share-based compensation expense of $161,591 primarily as a result of the granting of options to purchase an aggregate of 535,000 shares of common shares in February 2017 that all vested immediately upon the date of grant. Other expenses included travel and accommodation of $78,342 and rent of $43,621. Zomedica expects G&A expenditures in 2017 and future periods will be higher as activity levels increase.
Expenditures for R&D for the three months ended March 31, 2017 were $616,449 compared to $221,712 for the three months ended March 31, 2016. The increase was primarily due to the ramping up of R&D activities related to the establishment of labs, the hiring of full-time employees, new product candidates development, and contracted outsourcing activities. The increases were primarily due to contracted outsourced activities of $247,845, salaries of $170,912, and consulting fees of $92,444 relating to an increased level of lab activities, including in vitro and in vivo work, to support the further development of its product candidates ZM-012, ZM-006, ZM-007 and ZM-011, as well as research testing the feasibility of the liquid biopsy technology for veterinary application as a canine cancer diagnostic.
The Company expects R&D expenditures in 2017 will be significantly higher than in 2016, due to the initiation of pilot and pivotal studies to support the opened INADs, as well as work related to additional veterinary pharmaceutical candidates, diagnostic developments and technologies.
Professional fees for the three months ended March 31 2017 were $381,536 compared to $244,837 for the three months ended March 31, 2016. The increase was primarily due to expenses in connection with the preparation of Form S-1 relating to the resale or other disposition by selling shareholder, and initiating the approval process for listing on the NYSE MKT.
Liquidity and Outstanding Share Capital
Zomedica had cash of $1,767,035 as at March 31, 2017 compared to $3,226,680 as at December 31, 2016. The decrease in cash during the three months ended March 31, 2017 is mainly a result of the cash flows used in operating activities, partially offset by cash flows from financing activities as discussed below. For the three months ended March 31, 2017, cash flows used in operating activities amounted to $1,553,802. The largest use of cash within the operating activities in the current period was employees’ wages and benefits, and various consultants related to the preparation of Form S-1 relating to the resale or other disposition by selling shareholders.
As at March 31, 2017, Zomedica had an unlimited number of authorized common shares with 84,418,182 common shares issued and outstanding. As at May 11, 2017, Zomedica had 87,327,924 common shares issued and outstanding, an increase of 2,909,742 from March 31, 2017 due to the completion of the final tranche of Zomedica’s equity financing in April 2017 and the exercise of stock options in May 2017.
With U.S. operations based in Ann Arbor, Michigan, Zomedica is a veterinary pharmaceutical and health care solutions company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica is developing a diversified portfolio to include innovative drugs, drug-delivery technologies, diagnostics, and devices. 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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