BioTime, Inc. (NYSE Amex:BTIM) today reported financial results for the
fourth quarter and fiscal year ended December 31, 2009 and provided an
update on recent corporate developments.
“Recently, results from the first
independent study evaluating the use of Hextend in hemodynamically
unstable trauma patients demonstrated that initial resuscitation with
Hextend was associated with no obvious coagulopathy and reduced
mortality compared to fluid resuscitation without Hextend. The results
verify our long-held belief about the clinical benefits of Hextend”
For the three months ended December 31, 2009 total quarterly revenue
(including royalty income, revenue recognition of deferred license fees,
and grant income) was $749,341, up 163% from $285,280 for the same
period one year ago. The net income for the quarter ended December 31,
2009 was $1.4 million, or $0.04 per share compared to a net loss of $1.6
million or $0.06 per share for the quarter ended December 31, 2008. The
net income for the quarter ended December 31, 2009 includes the reversal
of the previously recorded liability for stock appreciation rights in
the amount of $2.1 million, resulting from the fourth quarter expiration
of the stock appreciation rights.
“Our team has recently achieved several significant milestones and is
positioned to generate substantial revenue growth in 2010,” said Michael
West, Ph.D., President and CEO. “We have made our first shipment of
BioTime’s progenitor cell lines and growth media to our partner
Millipore and they are now available for order by researchers through
Millipore’s stem cell homepage, www.millipore.com/stemcells.
Millipore, which is already a leading supplier of stem cell research
reagents, is marketing the product line through their direct sales
force. In addition, during the first quarter of 2010 our subsidiary,
BioTime Asia, received initial orders from four hospital-based stem cell
research centers in China for BioTime’s stem cell products for research
and development purposes,” continued Dr. West.
During the fourth quarter, BioTime recognized $280,041 in royalty
revenue from the sale of Hextend®, BioTime’s proprietary
physiologically balanced blood plasma volume expander for treating low
blood volume, a condition often caused from blood loss during surgery or
trauma. This compares to royalty revenue from the sale of Hextend of
$212,009 during the three months ended December 31, 2008. Royalties of
$19,887 from sales of Hextend by CJ were included in license fees during
the fourth quarter of 2008. The increase in royalties is attributable to
an increase in sales to hospitals by Hospira. For the full year ended
December 31, 2009, BioTime received $1.1 million in royalties from
Hextend as compared with royalties of $1.2 million for the full year
ended December 31, 2008. The decrease is primarily due to a decrease in
sales of Hextend to the United States Armed Forces, which was offset
somewhat by an increase in sales to hospitals. Purchases by the Armed
Forces generally take the form of intermittent, large volume orders, and
cannot be predicted with certainty.
During the first quarter of 2010, we received royalties of $293,373 on
sales of Hextend by Hospira and CJ that occurred during the fourth
quarter of 2009. Royalties for the quarter increased 33% from royalties
of $219,895 received during the same period last year. The increase is
generally due to an increase in sales to the military by Hospira and to
an increase in overall sales by CJ, offset somewhat by a decrease in
sales to hospitals by Hospira. These royalties will be reflected in our
financial statements for the first quarter of 2010.
BioTime’s total revenue for the 12 months ended December 31, 2009 was
$1.9 million as compared to $1.5 million for the year ago period. The
net loss for the year was $5.1 million or $0.18 per share, versus $3.8
million, or $0.16 per share. The increase in net loss for the year is
largely attributable to increased research and development costs as we
expanded our stem cell research program, and interest on borrowings
under our Revolving Line of Credit, which has since been paid off.
“Hextend continues to build on its market position as the standard
plasma volume expander at a number of prominent teaching hospitals and
leading medical centers, and is part of the Tactical Combat Casualty
Care protocol,” continued Dr. West. “Recently, results from the first
independent study evaluating the use of Hextend in hemodynamically
unstable trauma patients demonstrated that initial resuscitation with
Hextend was associated with no obvious coagulopathy and reduced
mortality compared to fluid resuscitation without Hextend. The results
verify our long-held belief about the clinical benefits of Hextend,”
added Dr. West.