<0> BioTime, Inc.Peter Garcia, 510-521-3390, ext. 367Chief Financial OfficerorJudith Segall510-521-3390, ext. 301 </0>
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, 2012 and highlighted recent corporate accomplishments.
Net loss attributable to BioTime, Inc. for the second quarter of 2012 was $5.5 million or $0.11 per share, compared to a net loss of $4.3 million or $0.09 per share for the same period of 2011. For the six months ended June 30, 2012, net loss attributable to BioTime was $10.4 million, or $0.21 per share, compared to $7.6 million, or $0.16 per share for the same period of 2011.
Total revenue, on a consolidated basis, was approximately $1.0 million and $1.7 million for the second quarter and year-to-date period ended June 30, 2012, respectively, compared to $0.8 million and $1.6 million for the same periods of 2011. The increase in revenue year-over-year is primarily attributable to grant income from Israel’s Office of the Chief Scientist for our subsidiary Cell Cure Neurosciences Ltd. and a partial period of license revenue from subscription and advertising revenue for as a result of the acquisition of XenneX, Inc. by BioTime’s subsidiary LifeMap Sciences, Inc. in the second quarter of 2012.
Total operating expenses for the second quarter of 2012 were $7.0 million, compared to $5.7 million for the comparable period in 2011. Research and development expenses for the second quarter of 2012 were $4.6 million, compared to $3.3 million for the comparable 2011 period. General and administrative expenses for the second quarter of 2012 were $2.4 million, which were the same as the comparable 2011 period.
Total operating expenses for the first six months of 2012 were $13.6 million, compared to $10.6 million for the comparable period in 2011. Research and development expenses for the first six months of 2012 were $8.8 million, compared to $6.3 million for the comparable 2011 period. General and administrative expenses for the first six months of 2012 were $4.8 million, compared to $4.3 million for the comparable 2011 period.
The increase in research and development expenses for the three and six month periods ending June 30, 2012, compared to the same periods in 2011, is primarily due to increased headcount-related expenses, patent-related legal fees, and increased efforts in the clinical development program and diagnostic development program. General and administrative expenses for the second quarter of 2012 were flat compared to the same period in 2011. The increase in general and administrative expenses for the six months ended June 30, 2012, compared to the same period in 2011, is primarily due to increased headcount-related expenses, including non-cash stock compensation expense.
Net cash used in operating activities was $4.0 million for the three months ended June 30, 2012 compared to $2.8 million for the three months ended June 30, 2011, reflecting additional expenses related to increased headcount and research and development programs in BioTime’s subsidiaries year over year. Net cash used in operating activities for the six months ended June 30, 2012 was $9.7 million for the six months ended June 30, 2012 compared to $6.2 million for the six months ended June 30, 2011.
The $4.0 million of net cash used in operating activities in the second quarter of 2012 was $1.7 million less than the $5.7 million used in the first quarter of 2012, which was due to a significant number of one-time license fees, employee bonuses, and other expenses which occurred in the first quarter of 2012.
Cash and cash equivalents, on a consolidated basis, totaled $12.7 million as of June 30, 2012, compared with $22.2 million as of December 31, 2011.
A BioTime subsidiary, OncoCyte Corporation, currently holds 1,286,174 in BioTime common shares. The common shares are accounted for as Treasury Stock on a consolidated basis, but this investment account, currently valued at approximately $5 million, is available to fund the operations of OncoCyte.
In July 2012, an investment of approximately $2 million was made in BioTime’s subsidiary LifeMap Sciences, Inc. through a share exchange agreement.
BioTime, headquartered in Alameda, California, is a biotechnology company focused on regenerative medicine and blood plasma volume expanders. Its broad platform of stem cell technologies is enhanced through subsidiaries focused on specific fields of application. BioTime develops and markets research products in the field of stem cells and regenerative medicine, including a wide array of proprietary ™ cell lines, hydrogels, culture media, and differentiation kits. BioTime is developing ™ (formerly known as -), a biocompatible, implantable hyaluronan and collagen-based matrix for cell delivery in human clinical applications. BioTime's therapeutic product development strategy is pursued through subsidiaries that focus on specific organ systems and related diseases for which there is a high unmet medical need. BioTime's majority owned subsidiary Cell Cure Neurosciences Ltd. is developing therapeutic products derived from stem cells for the treatment of retinal and neural degenerative diseases. BioTime's subsidiary OrthoCyte Corporation is developing therapeutic applications of stem cells to treat orthopedic diseases and injuries. Another subsidiary, OncoCyte Corporation, focuses on the diagnostic and therapeutic applications of stem cell technology in cancer, including the diagnostic product ™ currently being developed for the detection of cancer in blood samples. ReCyte Therapeutics, Inc. is developing applications of BioTime's proprietary induced pluripotent stem cell technology to reverse the developmental aging of human cells to treat cardiovascular and blood cell diseases. BioTime's subsidiary, LifeMap Sciences, Inc., markets , the leading human gene database, and is developing an integrated database suite to complement that will also include the ™ database of embryonic development, stem cell research and regenerative medicine, and , the human disease database. LifeMap will also market BioTime research products. BioTime's lead product, Hextend, is a blood plasma volume expander manufactured and distributed in the U.S. by Hospira, Inc. and in South Korea by CJ CheilJedang Corporation under exclusive licensing agreements. Additional information about BioTime can be found on the web at .
Statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development, and potential opportunities for BioTime and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the business of BioTime and its subsidiaries, particularly those mentioned in the cautionary statements found in BioTime's Securities and Exchange Commission filings. BioTime disclaims any intent or obligation to update these forward-looking statements.
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