BioMimetic Q3 loss narrows

Company starts enrolling for injectable product trials in Canada

Email | Print By Erin Lawley

Sam Lynch

BioMimetic Therapeutics released its third-quarter results after the market’s close Thursday and announced the start of clinical trial enrollment for its second orthopedic product.

The Franklin-based company posted a loss of $7.9 million, or 36 cents per diluted share, in the quarter ended Sept. 30, compared to a net loss of $18 million, or 97 cents per diluted share, in the year-ago quarter — numbers that included a $10.2 million impairment charge.

The Street had estimated a loss of 42 cents per share. BioMimetic shares (Ticker: BMTI) closed down 2 cents on Thursday, at $11.62 per share and remained relatively flat in after-hours trading.

Total revenue in the third quarter of 2009 was about $375,000, down from $419,000 in the third quarter of 2008. General and administrative expenses totaled $2.8 million in the third quarter, up about a quarter from the year before.

Of note during the quarter was the release of positive clinical trial results for BioMimetic’s Augment Bone Graft as a replacement for the standard-of-care treatment. Days ago, the company also announced approval from Health Canada to market the product in Canada.

BioMimetic CEO Sam Lynch said on the quarterly conference call that the company expects to make the first Augment kits available to customers in Canada within 30 days. The Canadian market for on-label use of the product is about $20 million, he said.

The company has also initiated patient enrollment in Canada for a study of its Augment Injectable Bone Graft in foot and ankle fusions. Based on discussions with the FDA, Lynch said he expects to begin U.S. enrollment in the first quarter of 2010.

At the end of the quarter, BioMimetic had $14.3 million of cash and cash equivalents and $86.3 million of investments. The company expects its year-end balance of cash, cash equivalents and investments to range from $88 million to $95 million. Loss before taxes for the year is projected at $31 million to $38 million.

Responding to what he called speculation about the company’s financing plans, Lynch said the company has “no plans to raise money in the near term.” Based on pivotal trial data and recent successes in generating liquidity in its auction-rate securities, he believes the company is in a “very solid financial position.”