Zomedica Pharmaceuticals Corp. Announces Third Quarter 2016 Financial Results

ANN ARBOR, Mich., Nov. 22, 2016 (GLOBE NEWSWIRE) -- Zomedica Pharmaceuticals Corp. (TSX-V:ZOM) ("Zomedica" or "Company"), a veterinary pharmaceutical company, today reported condensed unaudited interim consolidated financial results for the three and nine months ended September 30, 2016. Amounts, unless specified otherwise, are expressed in U.S. dollars and are presented under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS").

"We continue to build our unique companion animal health business," stated President and CEO Gerald Solensky Jr. "This quarter represents our first full quarter subsequent to the completion of our Qualifying Transaction resulting in our listing as a Life Sciences Issuer on the TSX Venture Exchange."

Corporate Highlights
  • On July 12, 2016, Zomedica announced the filing of a U.S. provisional application for patent with the U.S. Patent and Trademark Office and opened an INAD with the FDA-CVM for a novel formulation of ZM-006, a pharmaceutical targeting a metabolic disorder in companion animals.
  • On August 25, 2016, Zomedica announced the closing of the first tranche of its non-brokered private placement offering, issuing 3,342,480 common shares for gross proceeds of approximately CDN$5,013,720 or $3,875,500.
  • On September 19, 2016, Zomedica announced it was approved for graduation to Tier 1 issuer status from Tier 2 issuer status by the TSX Venture Exchange.
  • On October 4, 2016, Zomedica announced the appointment of two animal health industry veterans, Jane Eagleson and Tom Robitaille, to its Board of Directors.

Summary Third Quarter 2016 ResultsZomedica recorded net loss and comprehensive loss for the three months ended September 30, 2016 of $1,042,235 or $0.01 per share, compared with a loss of $715,778 or $0.02 per share for the three months ended September 30, 2015. For the three months ended September 30, 2016, the loss was attributed to research and development ("R&D") expenses of $411,104, the general and administrative ("G&A") expenses of $396,644 and professional fees of $212,684, with no revenues as Zomedica does not currently have an approved product. For the three months ended September 30, 2015, the loss was attributed to the professional fees of $457,182, the R&D expenses of $135,948 and the G&A expenses of $120,583.

Expenditures for R&D for the three months ended September 30, 2016 were $411,104 compared to $135,948 for the three months ended September 30, 2015. The majority of the current period expenses related to contracted outsourced activities of $205,532 and salaries of $136,155 as Zomedica ramped up activities in its lab including in vitro and in vivo work to support the further development of its intellectual property and preparation of opening its INAD for ZM-012 and ZM-006. The Company did not have a lab or R&D employees in the comparative period. Zomedica expects R&D expenditures throughout 2016 will be higher as compared to the same periods in 2015, due to the ongoing preparation of clinical work to support the opened INADs as well as additional veterinary pharmaceutical candidates and technologies.               G&A expenses for the three months ended September 30, 2016 were $396,644 compared to $120,579 for the three months ended September 30, 2015. The increase was primarily due to the ramping up of business, as ZoMedica was incorporated on May 14, 2015. The majority of these current period expenses related to the addition of personnel accounting for salaries of $229,874 due to the addition of employees in business development and accounting. Other expenses included marketing and investor relations of $60,168 as this was the first full quarter of Zomedica as a public company. Zomedica expects G&A expenditures throughout 2016 will be higher as compared to the same periods in 2015, due to the acceleration of activities subsequent to the closing of the Transaction and due to its listing as a Life Sciences Issuer on the TSX Venture Exchange.