ProMetic Life Sciences Inc.

ProMetic Life Sciences Inc.

August 14, 2008 17:58 ET

Prometic Reports Business Highlights and Second Quarter Financial Results

- Maintaining positive EBITDA target for Protein Technologies Division - Significant cost reductions resulting in cash savings in second half 2008 and in 2009 - Increasing use of Prion Capture technology - Ongoing partnering activities for plasma proteins and PBI-1402

MONTREAL, QUEBEC--(Marketwire - Aug. 14, 2008) - ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic") today reported business highlights and financial results for the second quarter of 2008. All amounts are in Canadian dollars unless otherwise indicated.

"ProMetic maintains its 2008 revenue guidance for its Protein Technologies division with EBITDA being positive in 2008 and greater than $15 M for 2009. We expect a strong second half of 2008 pursuant to the delivery on orders in-hand, execution on agreements, the imminent signing of additional agreements as disclosed earlier this month, as well as a decrease in certain non-recurring payments and targeted cost-reduction measures," comments Mr. Pierre Laurin, ProMetic's President and Chief Executive Officer.

"A positive trend is seen, when in the second quarter alone, well over $5 M worth of orders for ProMetic's products and services were secured with delivery scheduled over the third and fourth quarters of 2008. These orders result directly from the increased demand by existing clients for ProMetic's products as well as the adoption of these products by new clients," added Mr. Laurin.

Mr. Laurin continued: "Additionally, we anticipate a reduction of approximately $4 M in expenditures for the second half of 2008. This includes decreases in research expenses relating to projects having reached commercial stage and certain non-recurring payments. Costs savings are expected to exceed $8 M in 2009".

"The combination of revenue growth and costs savings will have a significant impact on our financial position as early as the second half of 2008," Mr. Laurin concluded.


Protein Technologies

- Proprietary Affinity products -

- Earlier this month ProMetic announced that it had reached an understanding with a fully integrated, U.S.-based, biotechnology company for the development and global commercialization of several biopharmaceutical products. In addition to licensing, development and milestone fees as well as on-going royalties on sales of products, the definitive agreements will provide for an initial strategic investment in ProMetic of $7 million at a share price of $0.47. This transaction is anticipated to provide a significant funding commitment towards the development and commercialization of the products, which will contribute to ProMetic's revenue growth as early as 2008;

- 10 biopharmaceutical products / devices relying on ProMetic technology have received regulatory approval for sale by the U.S. Food and Drug Administration and/or the European Medicines Agency, creating a growing and recurring revenue stream for ProMetic. The adoption of ProMetic technologies are on the rise with a growing number of biopharmaceutical companies including proprietary affinity products as part of their manufacturing process.

- Prion Capture products -

- Octapharma is the first plasma fractionation company to implement Pathogen Removal and Diagnostics Technologies' ("PRDT") Prion Capture resin for the manufacture of a plasma product, Octaplas®. This represents immediate revenue in 2008 for ProMetic and long-term recurring revenues.

- In July Octapharma announced that it had seen the renewal of the marketing authorization for five years of its Octaplas® product by the Health Authorities in Belgium, Finland, Ireland, Luxembourg, Netherlands, Sweden and the United Kingdom;

- P-Capt® Prion Capture filter phased-in adoption is proceeding as planned in Ireland, Scotland and in the rest of the UK, with revenue for ProMetic in 2008;

- In April ProMetic signed a Letter of Intent to acquire the American Red Cross' ("ARC") common stock holding in PRDT, the joint venture established by ProMetic and ARC in 2002 to develop and commercialize products to diagnose and reduce pathogens in blood, blood derivatives, biopharmaceuticals and other biological products.

- Plasma Proteins -

- Presently executing on the transfer technology portions of the agreements with Kedrion S.p.A., the Wuhan Institute for Biological Products and the Blue Blood Biotech Corporation;

- Additional discussions are leading to imminently anticipated plasma protein agreements.

"The scale-up for projected adoption of the P-Capt® filter, the increasing demand for our Prion Capture products as well as the growing number and size of orders for bioseparation materials are some of the key elements giving momentum to this evolution and growth," commented Dr Steve Burton, Chief Executive Officer for ProMetic BioSciences Ltd, ProMetic's UK division.


- PBI-1402 -

- On-going partnering discussions supported by pre-clinical data in anemia associated with renal disease. Strong clinical data in chemotherapy-induced anemia and further evidence of PBI-1402 and novel analogues' mechanism of action that further differentiates them from EPO's mechanism of action;

- ProMetic's strong proprietary platform with patents on PBI-1402 granted in key markets along with additional patents for new proprietary compounds targeting the non-EPO receptor, further enhances the value of the PBI-1402 opportunity;

- Clinical results for PBI-1402 will be submitted for peer review in upcoming scientific forums.

Second Quarter 2008 Financial Results

The following information should be read in conjunction with the financial statements for the second quarter 2008 as well as the Management Discussion and Analysis for the same period.


Total revenues, which were only derived from the protein technology unit, for the second quarter of 2008 were $1.1 million compared with $3.0 million for the second quarter of 2007. For the first six months of 2008, revenues were $2.8 million compared to $6.1 million for the same period last year.

Historically, revenues arising from resin supply to partners have been unevenly distributed from quarter to quarter. As the Company's technology is being adopted by various pharmaceutical companies, quarterly revenues will continue to vary. This makes quarterly revenue comparison very difficult; therefore, revenues should be analyzed and compared using longer periods.

The first half of 2007 revenues were higher than those for the same period of 2008 due to the fact that $4.1 million of revenues for that period related to a single large-scale use of ProMetic Affinity Ligand Adsorbent. We anticipate similar uneven distribution of revenues over the forthcoming quarters.

Management fully anticipates that, as the protein technologies business continues to extend the commercialisation of its technology, significant, sustainable revenues and cash will be generated. Details of these will be announced in public statements at the appropriate time.

Net results

The Company incurred a net loss of $5.6 million, or $0.02 per share (basic and diluted), for the quarter ended June 30, 2008 compared with a net loss of $4.8 million, or $0.02 per share (basic and diluted), for the same period in 2007. The increase in net loss was primarily due to lower revenues in this quarter.

For the first six months of 2008, the net loss totalled $11.4 million, or $0.04 per share (basic and diluted), compared to a net loss of $9.5 million, or $0.04 per share (basic and diluted). The increase in net loss is due to lower revenues as well as increased interest charges.

Cash Flows

Cash flows used in operating activities amounted to $10.8 million for the first six months ended June 30, 2008, compared with $14.0 million for the same period in 2007. For the second quarter of 2008 and 2007, it totalled $6.9 million and $7.3 million respectively. The decrease in cash outflows for operating activities for the second quarter and the first six months was mainly attributed to the increase of our accounts receivable related to important contracts.

Included in the cash outflows for the business in the first half of 2008 are sums amounting to $3.5M. These payments relate to the servicing of certain debt obligations, some of which are reaching the end of their contractual life. As a result, the level of these payments will reduce into second half of 2008 and beyond.

Cash inflows from financing activities amounted to $9.1 million for the quarter ended June 30, 2008 compared with cash outflows of $0.5 million for the same period in 2007.

Additionally, ProMetic has filed today a Supplement (the "Supplement") to a short form base shelf prospectus of ProMetic that was previously filed on November 3, 2006. The Supplement qualifies the distribution of up to 3,750,381 Common Shares of the Corporation ("Common Shares") at a price per Common Share of $0.34. This will allow for an exchange of common shares for services rendered by long-term stakeholders of the Company.

ProMetic's MD&A, 2008 Second Quarter Financial Statements and Supplement have been filed on Sedar ( The MD&A and Second Quarter Financial Statements are now available on its web site at

About ProMetic Life Sciences Inc.

ProMetic Life Sciences Inc. ("ProMetic") ( is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand™ technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.

Forward Looking Statements

This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 21 of ProMetic's Annual Information Form for the year ended December 31, 2007, under the heading "Risk Factors". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations.

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