Full Press Release Details
Announces Fourth Quarter and Fiscal Year End 2013 Financial Results and
Recent Corporate Accomplishments
ALAMEDA, Calif.--(BUSINESS WIRE)--March 17, 2014--BioTime, Inc. (NYSE
MKT: BTX), today reported financial results for the fourth quarter and
year ended December 31, 2013 and highlighted its fourth quarter and
recent corporate accomplishments.
Fourth Quarter and Recent Highlighted Corporate Accomplishments
BioTime's subsidiary Asterias Biotherapeutics, Inc. completed the
acquisition of stem cell assets from Geron Corporation, including
patents and other intellectual property, biological materials,
reagents and equipment for the development of new therapeutic products
for regenerative medicine.
BioTime conducted a clinical safety study of Renevia , a
biocompatible, implantable hyaluronan and collagen-based matrix for
cell delivery in human clinical applications, at The Stem Center in
Palma de Mallorca, Spain. Examinations of the subjects after they
received Renevia injections showed that Renevia
was well tolerated by all subjects with no serious adverse events or
subject withdrawals.
BioTime commenced the development of two new products based on our HyStem
technology platform. The new products are unique
formulations utilizing some of the same cGMP components used in Renevia .
The first of these new products is ReGlyde , a cross-linked
thiol-modified hyaluronan hydrogel for the management and protection
of tendon injuries following surgical repair of the digital flexor or
extensor tendons of the hand. The second new product, Premvia ,
is a HyStem hydrogel formulation of
cross-linked thiol-modified hyaluronan and thiol-modified gelatin for
the management of wounds including partial and full-thickness wounds,
ulcers, tunneled/undermined wounds, surgical wounds, and burns.
BioTime's subsidiary OncoCyte Corporation entered into a Sponsored
Research Agreement and a Material Transfer Agreement with The Wistar
Institute to collaboratively develop lung cancer diagnostic products.
OncoCyte scientists will analyze blood samples obtained from patients
in a Wistar clinical study to determine levels of tumor-associated
proteins found in the blood samples. The data obtained from the
samples received from Wistar's ongoing multi-center study may allow
OncoCyte to more rapidly develop a diagnostic test for lung cancer to
be marketed in the U.S. and other countries.
BioTime consolidated its research products business into a new ESI BIO
division and a new ESI BIO branding program. The ESI BIO brand and
US-based operating division will now be BioTime's primary developer,
manufacturer and distributor of a growing portfolio of stem cell based
For the quarter ended December 31, 2013, on a consolidated basis, total
revenue was $1.9 million, up $0.7 million from $1.2 million for the same
period one year ago. The increase in fourth quarter revenue is primarily
attributable to the accelerated amortization of the license fees from
our license agreement with Summit which was terminated in 2013.
For the full year 2013, total revenue, on a consolidated basis, was $4.4
million, up $0.5 million from $3.9 million in 2012. The increase in
annual revenue is primarily due to the same factors that contributed to
the increase in fourth quarter revenues. License revenue included
subscription and advertising revenues from LifeMap Sciences' online
database GeneCards and accounted for
approximately $1.3 million and $0.8 million of total revenue as of
December 31, 2013 and 2012, respectively.
Operating expenses for the three months ended December 31, 2013 were
$13.5 million, compared to expenses of $8.1 million for the same period
of 2012. The increase in operating expenses is primarily attributable to
an increase in staffing, and the expansion of research and development
efforts, including additional expenses in the Renevia clinical
safety trial program, the development of OpRegen by
BioTime's subsidiary Cell Cure Neurosciences, Ltd for the treatment of
dry age related macular degeneration, and the increased staffing
and operations of Asterias in connection with the Geron stem cell asset
acquisition. In addition, during the fourth quarter, Asterias recognized
$17.5 million of non-cash in-process research and development (IPR&D)
expense in connection with the consummation of its acquisition of assets
from Geron. IPR&D represents the value allocated by management to
incomplete research and development projects which Asterias acquired
from Geron and intends to continue. In accordance with applicable
accounting rules, that value was expensed rather than capitalized for
future amortization because the acquisition was accounted for an
acquisition of assets rather than an acquisition of a business.
Operating expenses for the full year ended December 31, 2013 were $42.2
million, compared to $28.5 million for the full year ended December 31,
2012. The increase in operating expenses is primarily related to an
increase in staffing, the expansion of research and development efforts,
and transaction legal expenses. In addition, BioTime recognized $17.5
million of non-cash IPR&D expense in connection with Asterias'
acquisition of Geron's stem cell assets, as discussed above.
Net loss attributable to BioTime for the three months ended December 31,
2013 was $19.6 million or $0.35 per share, compared to a net loss of
$6.0 million or $0.12 per share for the same period in 2012. Net loss
attributable to BioTime for the full year ended December 31, 2013 was
$43.9 million or $0.81 per share, compared to a net loss of $21.4
million or $0.44 per share for the full year ended December 31, 2012.
Net loss for both the three months and the full year ended December 31,
2013 includes the $17.5 million of non-cash IPR&D expense described
above and $3.3 deferred income tax benefit. Net losses attributable to
BioTime include losses from BioTime majority owned subsidiaries based
upon BioTime's percentage ownership of those subsidiaries.
Balance Sheet and Subsequent Financing Events
Cash and cash equivalents, on a consolidated basis, totaled $5.5 million
as of December 31, 2013, compared with $4.3 million as of December 31,
Since January 1, 2014, BioTime and certain of its subsidiaries raised
approximately $8.6 million of additional equity capital through the sale
of BioTime common shares in "at-the-market" transactions through Cantor
Fitzgerald & Co. ("Cantor"), as sales agent. In addition, on March 4,
2014, BioTime raised $3.5 million of equity capital through the sale of