San Diego, California and Vancouver, British Columbia, MAY 14, 2012 – Sophiris Bio Inc. (Sophiris, TSX: SHS), a developer of innovative products for the treatment of urological diseases, today announced financial results and achievements for the first quarter ended March 31, 2012.
“We are pleased with our progress during the quarter. On March 28th, we announced the completion of dosing of all four cohorts in our Transrectal Study of PRX302 for the treatment of benign prostatic hyperplasia (BPH) and we look forward to releasing our three month safety results from the study in the Third Quarter of this year,” said Dr. Lars Ekman, Executive Chairman and President of Sophiris. Dr. Ekman added, “We also strengthened our cash position in the Quarter by completing a follow-on financing with our largest shareholder Warburg Pincus providing meaningful additional resources to drive the continued advancement of PRX302 for the treatment of BPH.”
Key Operational and Financial Highlights
- Completion of dosing of all four cohorts of patients in our Transrectal Study of PRX302 for the treatment of BPH.
- Closed an additional CND $8.3 million investment from our largest shareholder, Warburg Pincus pursuant to its rights under the terms of the existing Investment Agreement dated September 28, 2010.
Quarter Ended March 31, 2012
The Company reported a net loss of $4.5 million ($0.03 per share) for the three months ended March 31, 2012, compared to a net loss of $2.2 million ($0.02 per share) for the three months ended March 31, 2011, representing an increase of $2.3 million. The increase in net loss was driven primarily from an increase in total expenses of $1.9 million over the same period as a result of our increased research and development activities associated with our on-going Transrectal Study and PRX302 clinical material manufacturing expenses.
Research and Development Costs
Research and development costs were $3.1 million for the three months ended March 31, 2012, versus $1.3 million for the three months ended March 31, 2011, an increase of $1.8 million. The increase in research and development expenses is primarily attributable to the ongoing Transrectal study of PRX302 and the Chemistry, Manufacturing and Controls (CMC) program for PRX302 clinical material supply.
General and Administrative Costs
General and administrative costs for the three months ended March 31, 2012, were $1.0 million, an increase of $0.1 million from the $0.9 million incurred during the three months ended March 31, 2011. The increase is due primarily due to expenses associated with our recent name change and personnel related costs partially offset by a reduction in legal and consulting expenses.
Interest income remained fairly consistent at $12,000 for the three months ended March 31, 2012 compared to $13,000 for the three months ended March 31, 2011.
During the three months ended March 31, 2012, the Company incurred interest expense related to the Company’s secured promissory note with Oxford Financial LLC of $0.5 million. The secured promissory note
was originated during July 2011 as such there is no interest expense related to this loan during the three months ended March 31, 2011.
For complete financial results, please see our filings at www.sedar.com.
Sophiris is a developer of innovative products for the treatment of urological diseases. Sophiris’ lead program, PRX302 (PORxin), achieved positive results from its Phase 2b placebo controlled trial called TRIUMPH, to treat benign prostatic hyperplasia (BPH or enlarged prostate). Sophiris has partnered with Kissei Pharmaceuticals for the development and commercialization of PRX302 in Japan. For more information, please visit www.sophirisbio.com.
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Sophiris’ current beliefs as well as assumptions made by and information currently available to Sophiris and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Sophiris in its public securities filings; actual events may differ materially from current expectations. Sophiris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information contact:
The Trout Group