BioTime, Inc. (NYSE MKT: BTX), today reported financial results for the fourth quarter and year ended December 31, 2012 and highlighted its fourth quarter and recent corporate accomplishments.
Fourth Quarter and Recent Highlighted Corporate Accomplishments
- Entered into a definitive agreement with Geron Corporation in which BioTime’s subsidiary BioTime Acquisition Corporation (BAC) will acquire the patents and patent applications, biological materials, and other assets related to Geron’s human embryonic stem (hES) cell programs, including Geron’s Phase I clinical trial of oligodendrocyte progenitor cells in patients with acute spinal cord injury, as well as its Phase I/II clinical trial of its autologous cellular immunotherapy program in patients with acute myelogenous leukemia.
- Expanded the HyStem ® field-of-use license from the University of Utah to an exclusive worldwide license for all human medical applications.
- Submitted 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.
- Updated plans for OncoCyte’s initiation of a clinical study using PanC-Dx™ for breast cancer screening in 2013.
- Launched LifeMap BioReagents™ portal, Malacards database, and LifeMap Discovery™ database though LifeMap Sciences.
- Raised cash proceeds of $14.7 million over the past five months through the sale of BioTime common shares, including $1.4 million in the fourth quarter of 2012, $13.3 million in the first quarter of 2013 to date, and will raise an additional $3 million through an amended agreement with an investor which is expected to close on April 10, 2013.
“We have positioned 2013 to be a very pivotal year in the development of our product opportunities as BioTime begins human clinical trials for Renevia™, OncoCyte initiates its PanC-Dx™ clinical study, LifeMap Sciences expands its revenue generating product offerings, and we move to close our transaction with BAC and Geron,” said Michael D. West, Ph.D., BioTime's President and Chief Executive Officer. “The proceeds from our recent equity financings will support the funding of our operations and cash commitment to BAC through this year.”
Financial ResultsRevenue For the quarter ended December 31, 2012, on a consolidated basis, total revenue was $1.2 million, down $0.5 million from $1.7 million for the same period one year ago. The decrease in fourth quarter revenue is primarily attributable to lower grant revenue related to the completion of BioTime’s research grant from the California Institute for Regenerative Medicine (CIRM), and a decrease in the sale of research products, partially offset by subscription and advertising revenues from LifeMap Sciences’ online database GeneCards ®, which LifeMap Sciences began marketing in May of 2012. For the full year 2012, total revenue, on a consolidated basis, was $3.9 million, down $0.5 million from $4.4 million in 2011. The decrease in annual revenue is primarily due to the same factors that contributed to the decline in fourth quarter revenues. License revenue included subscription and advertising revenues from LifeMap Sciences’ online database GeneCards ®, and accounted for approximately $0.8 million in new revenue beginning at the end of the second quarter of 2012. Expenses Total expenses for the three months ended December 31, 2012 were $8.1 million, compared to expenses of $7.1 million for the same period of 2011. Fourth quarter operating expenses increased 14% from 2011 due to an increase in staffing, and the expansion of research and development efforts, including additional expenses in the Renevia™ clinical development program and PanC-Dx™ cancer diagnostic development program, and one-time transaction legal expenses related to Geron’s stem cell assets contribution agreement. Total expenses for the full year ended December 31, 2012 were $28.5 million, compared to $23.0 million for the full year ended December 31, 2011. The increase in expenses is primarily related to an increase in staffing, the expansion of research and development efforts, and transaction legal expenses.