Full Press Release Details
Announces Second Quarter 2013 Financial Results and Recent Corporate
ALAMEDA, Calif.--(BUSINESS WIRE)--August 9, 2013--BioTime, Inc. (NYSE
MKT: BTX), a biotechnology company that develops and markets products in
the field of regenerative medicine, today reported financial results for
the second quarter ended June 30, 2013 and highlighted recent corporate
Second Quarter and Recent Corporate Accomplishments
BioTime's shareholders approved the proposals related to the planned
acquisition of stem cell related assets from Geron Corporation by
BioTime's subsidiary Asterias Biotherapeutics, Inc. Although there are
several additional conditions that are required by the Asset
Contribution Agreement, BioTime believes that it can fulfill those
requirements and expects to close the transaction by the end of the
third quarter of 2013.
BioTime raised $9.1 million of equity capital in June 2013 through the
sale of common shares and warrants to certain investors.
BioTime expanded the size of its Board of Directors to nine and
appointed Henry L. Nordhoff to the Board. Mr. Nordhoff retired as
Chairman of the Board of Gen-Probe Incorporated, a clinical diagnostic
and blood screening company, at the end of 2011, after serving as its
Chairman since September 2002. Mr. Nordhoff brings to our Board a long
record of experience and success in the pharmaceutical and biotech
industries and provides our Board with valuable operational expertise
and leadership skills during a period of significant growth.
BioTime elected Franklin M. Berger to the BioTime Board of Directors.
Mr. Berger is an experienced director of publicly-traded biotechnology
companies, and currently serves on the boards of Seattle Genetics,
Inc. and other companies. He is also a consultant to biotechnology
industry participants, including major biopharmaceutical firms,
mid-capitalization biotechnology companies, specialist asset managers
and venture capital companies, providing business development,
strategic advisory, financing, partnering, and royalty acquisition
BioTime's Senior Vice President and Chief Operating Officer, Robert W.
Peabody, reassumed the additional role as Chief Financial Officer
commencing May 10, 2013. Mr. Peabody, 59, has served as our Senior
Vice-President and Chief Operating Officer since 2007 and also served
on an interim basis as our Chief Financial Officer from September 2010
BioTime entered into a worldwide license agreement with the University
of California, Los Angeles ("UCLA") for novel technology related to
the treatment of stroke. The licensed technology developed at UCLA
uses one of BioTime's HyStem hydrogels
to deliver locally released growth factors to improve recovery from
stroke. BioTime will sponsor on-going pre-clinical work at UCLA to
advance the understanding of this technology and develop data in
support for the potential filing of an IND for human clinical trials.
BioTime submitted a protocol to European regulatory authorities for
initiation of human clinical trials of Renevia as a medical
device for the delivery of adipose stem cells for reconstructive
surgery. The initiation of human clinical studies is expected this
year subject to approval of the protocol.
BioTime subsidiary LifeMap Sciences, Inc. entered into a value-added
reseller agreement with Appistry, Inc., a company that provides
big-data computing that supports life-science and medical analytics at
hospitals and medical research centers and organizations. Appistry
will market reports that include LifeMap Sciences' GeneCards
and MalaCards genetic information to clinicians and researchers
under a revenue share arrangement with LifeMap Sciences, based on
sales of such reports.
BioTime subsidiary Cell Cure Neurosciences Ltd. was awarded a grant of
5.34 million Shekels, approximately $1.5 million, for 2013 from
Israel's Office of the Chief Scientist (OCS) to help finance the
development of OpRegen , a cell-based
therapeutic product being developed by Cell Cure Neurosciences for the
treatment of age-related macular degeneration.
"We are continuing to make progress towards our goal to become the
leader in the field of regenerative medicine. We have the right team in
place to capitalize on the opportunities in the field, and we will be
one step closer to having the premier asset portfolio in regenerative
medicine when our subsidiary Asterias Biotherapeutics, Inc. completes
the acquisition of Geron's stem cell assets by the end of the third
quarter this year," said Dr. Michael West, BioTime's Chief Executive
Officer. "We are also making continuing progress in developing our
current revenues from Internet services and research product sales as
well as in moving our near term diagnostic and therapeutic product
opportunities toward clinical trials that are expected to begin later
this year. In addition, we continued to raise capital to fund our
efforts to provide adequate capital so that we can continue our work in
this critical field of medicine."
Net loss attributable to BioTime for the second quarter of 2013 was $7.5
million or $0.14 per share, compared to a net loss of $5.5 million or
$0.11 per share for the same period of 2012. For the six months ended
June 30, 2013, net loss attributable to BioTime was $15.3 million, or
$0.29 per share, compared to $10.4 million, or $0.21 per share for the
same period of 2012. Contributing to the increased expenses
year-over-year was approximately $1 million in organization, legal, and
start-up costs associated with its new subsidiary Asterias
Biotherapeutics, Inc. ("Asterias"). The other subsidiaries combined for
approximately $4 million of other operating losses, with the balance of
the operating loss of approximately $3 million residing in BioTime.
Historically BioTime's subsidiaries have raised capital, received
grants, and generated revenues independently of BioTime to help fund
their operations, and we expect the subsidiaries to continue to pursue
such financing strategies in the future.
Total net revenue, including license fees (which also include online
database subscription and advertising revenues), royalties from sales of Hextend ,
research product sales, and grant income, on a consolidated basis, was
$1.0 million and $1.5 million, respectively, for the three and six
months ended June 30, 2013, compared to $0.9 million and $1.6 million,
respectively, for the same periods in 2012. The increase in revenues
during the three months is primarily attributable to the increase in
subscription and advertising revenues at LifeMap Sciences. The decrease