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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported):
August 29, 2008
Aastrom Biosciences, Inc.
(Exact name of registrant as specified in its charter)
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Michigan
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0-22025
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94-3096597 |
(State or other jurisdiction of
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(Commission File No.)
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(I.R.S. Employer Identification |
incorporation)
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No.) |
24 Frank Lloyd Wright Drive
P.O. Box 376
Ann Arbor, Michigan 48106
(Address of principal executive offices)
Registrants telephone number, including area code:
(734) 930-5555
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition.
On August 29, 2008, we issued a press release announcing financial results and achievements
for our fourth fiscal quarter and fiscal year ended June 30, 2008. A copy of the press release is
attached hereto as Exhibit 99.1.
Pursuant to General Instruction B.2 of Form 8-K, this report and the exhibit are not deemed to
be filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall this report
and the exhibit be incorporated by reference into our filings under the Securities Act of 1933 or
the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such
future filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit No. |
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Description |
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99.1
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Press Release dated August 29, 2008 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 29, 2008
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AASTROM BIOSCIENCES, INC.
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By: |
/s/ George W. Dunbar, Jr.
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George W. Dunbar, Jr. |
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Chief Executive Officer and President |
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exv99w1
Exhibit 99.1
FOR
IMMEDIATE RELEASE
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CONTACTS:
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Kris M. Maly or Kimberli OMeara
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Kevin McGrath |
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Investor Relations Department
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Cameron & Associates (Investors) |
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Aastrom Biosciences, Inc.
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Phone: (212) 245-4577 |
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Phone: (734) 930-5777 |
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Stephen Zoegall |
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Berry & Company (Media) |
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Phone: (212) 253-8881 |
AASTROM BIOSCIENCES, INC. REPORTS FOURTH QUARTER AND
FISCAL YEAR 2008 FINANCIAL RESULTS
Ann Arbor, Michigan, August 29, 2008 Aastrom Biosciences, Inc. (Nasdaq: ASTM), a leading
regenerative medicine company, today reported financial results for the fourth quarter and fiscal
year ended June 30, 2008. The Company also reported clinical and operational achievements during
the quarter, including:
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Encouraging clinical data from the first two patients treated with Aastroms autologous
stem cell therapy for dilated cardiomyopathy (DCM), a type of severe chronic heart failure.
This milestone marked the first human application of the Companys Cardiac Repair Cell
(CRC) product to regenerate damaged heart tissue in patients with severely impaired cardiac
function. |
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Authorization by U.S. Food and Drug Administration (FDA) to initiate a 40-patient U.S.
Phase II IMPACT-DCM clinical trial to study the use of CRCs for the treatment of DCM. The
randomized, controlled, prospective, open-label study will seek to enroll 20 patients with
ischemic DCM and 20 patients with non-ischemic DCM at five clinical sites in the U.S. |
These two milestones represent a turning point for Aastrom, said George Dunbar, President and
Chief Executive Officer of Aastrom. The patients we have treated and intend to treat with our CRC
product are critically ill and currently have no options other than a heart transplant. The
clinical data we gathered from two compassionate use patients in Europe, along with FDA
authorization to initiate our cardiac program in the U.S., strongly support our decision to make
our cardiac program our top priority. In addition to advancing our cardiac program, we are
continuing to move our vascular program forward with our ongoing RESTORE-CLI clinical trial for
critical limb ischemia. We remain optimistic about both of these important clinical trials and
look forward to providing updates as we achieve clinical milestones.
Other significant clinical achievements involving our Tissue Repair Cell-based (TRC) products for
tissue regeneration during fiscal year 2008 include:
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Encouraging results from two German research groups utilizing Aastroms proprietary TRC
technology platform to manufacture autologous stem cell products were presented at the 2nd
Congress of the German Society for Stem Cell Research in Würzburg, Germany: |
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Interim results from the first 13 patients treated in a multi-arm,
Phase I/II, single-center clinical trial to evaluate the safety of Vascular Repair
Cells (VRCs) and normal bone marrow cells in the treatment of chronic diabetic foot
wounds associated with critical limb ischemia (CLI) were presented by Dr. Bernd
Stratmann of the Diabetes Center at the Heart and Diabetes Center in North
Rhine-Westphalia (Center), Bad Oeynhausen, Germany. Twelve months post-treatment,
all four patients in the interim analysis who were treated with VRCs |
-more-
Aastrom-4th Q FY2008 Financial Results
August 29, 2008
Page 2
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reported no
major amputations, no cell-related adverse events, and healing of all open wounds. |
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Early clinical data involving the first use of Aastrom Bone Repair
Cells (BRCs) to treat patients suffering from osteonecrosis of the femoral head
were presented by Ulrich Nöth, M.D. of the Orthopaedic Institute,
König-Ludwig-Haus, University of Würzburg, Germany. Dr. Nöth reported all four
patients tolerated the procedure well, had a reduction in hip pain with no signs of
disease progression, as determined by MRI and X-ray, and were back to work within
six months after treatment. In addition, no cell-related adverse events were
reported and none of these patients have required hip replacement surgery. |
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Positive final results from a U.S. Phase I/II clinical trial designed to collect safety
and efficacy data utilizing BRCs in the treatment of severe non-union fractures were
presented by Matthew L. Jimenez, M.D., of the Illinois Bone & Joint Institute, during a
podium presentation at the Orthopaedic Trauma Association annual meeting in Boston, MA: |
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Healing in 30 of 33 patients (a 91% healing rate) with non-union tibia,
humerus or femur fractures that had failed to heal after one or more prior medical
procedures (average 1.75) one year post-BRC treatment |
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100% of the patients who have healed were fully weight-bearing, have
regained range of motion and are no longer impaired by their injuries |
Anticipated clinical milestones for the next 12 months and beyond include the following:
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Initiate patient treatments in U.S. Phase II IMPACT-DCM trial (Sept. 2008) |
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Complete patient enrollment in IMPACT-DCM trial (4Q2009) |
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Approval to initiate cardiac clinical trial activity in the EU (2H2009) |
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Complete enrollment of first 30 patients into U.S. Phase IIb RESTORE-CLI trial (4Q2008) |
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Analyze RESTORE-CLI trial interim data 12 months after 30th patient treatment (2H2009) |
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Initiate spinal cord injury clinical activity |
Fiscal Year 2008 Fourth Quarter and Year Ended June 30, 2008 Results
Total revenues for the quarter and twelve months ended June 30, 2008, consisting of minimal product
sales, consisting of manufacturing supplies to academic collaborators in the U.S. and cell-based
products to EU-based physicians, and grant funding, were $149,000 and $522,000, respectively,
compared to $165,000 and $685,000 for the same periods in fiscal year 2007.
-more-
Aastrom-4th Q FY2008 Financial Results
August 29, 2008
Page 3
Total costs and expenses for the quarter and twelve months ended June 30, 2008 increased to
$5,142,000 and $21,741,000, respectively, from $5,388,000 and $20,154,000 for the same periods in
fiscal year 2007.
Research and development expenses for the quarter and twelve months ended June 30, 2008 were
$3,449,000 and $15,249,000, respectively, compared to $3,480,000 and $11,443,000 for the same
periods in fiscal year 2007. These changes reflect the continued expansion of our research and
development activities to support regulatory submissions, on-going and planned tissue regeneration
clinical trials in the U.S. and EU. In May 2008, we reprioritized our clinical development
programs to focus primarily on cardiovascular applications including dilated cardiomyopathy and
critical limb ischemia. We have discontinued further patient enrollment into our Phase III ON-CORE
(osteonecrosis) bone regeneration trial. We do not anticipate initiating new clinical bone
activity, reactivating the Phase III ON-CORE trial or initiating formal clinical trials in the
neural area without additional financial resources. While the decision to reprioritize was driven
by economic factors, the clinical programs were prioritized based on anticipated time to market and
the relative clinical and market potential. Research and development expenses for the twelve
months ended June 30, 2008 also include a non-cash charge of $515,000 compared to $702,000 for the
same period in fiscal year 2007, relating to share-based compensation expense.
Selling, general and administrative expenses decreased for the quarter and twelve months ended June
30, 2008 to $1,668,000 and $6,436,000, respectively, from $1,896,000 and $8,682,000 for the same
periods in fiscal year 2007. These decreases reflect lower salaries and benefits as a result of
management and employee changes; decreases in relocation and recruitment expenses; reduced
supplemental compensation relating to the 2007 management performance bonuses; and the elimination
of the management performance bonus plan and the associated costs for 2008. Selling, general and
administrative expenses for the twelve months ended June 30, 2008 included a non-cash charge of
$1,088,000 compared to $2,104,000 for the same period in fiscal year 2007, relating to share-based
compensation expense.
Interest income for the quarter and twelve months ended June 30, 2008 was $153,000 and $1,170,000,
respectively, compared to $394,000 and $1,875,000 for the same periods in fiscal year 2007. The
fluctuations in interest income are due primarily to corresponding changes in the level of cash,
cash equivalents and short-term investments during the periods.
Net loss for the quarter ended June 30, 2008 was $4,863,000, or $0.04 per share, compared to a net
loss of $4,829,000, or $0.04 per share for the same period in fiscal year 2007. Net loss for the
twelve months ended June 30, 2008, was $20,133,000, or $.16 per share, compared to $17,594,000 or
$0.15 per share for the same period in fiscal year 2007. The increases in net losses are primarily
the result of increased research and development expenses offset on a per share basis by an
increase in the weighted average number of common shares outstanding.
At June 30, 2008, the Company had $22.5 million in cash, cash equivalents and short-term
investments as compared to $28.3 million at June 30, 2007. The global economy and capital markets
have been challenging for the small cap biotech sector for the past year. This situation makes the
timing and potential for future equity financings uncertain. As a result, we have reduced costs
and expenses in an attempt to achieve an estimated average cash utilization of approximately $1.2
million per month for the fiscal year ending June 30, 2009, through a combination of development
and clinical program reprioritizations and adjustments focusing on our cardiac regeneration
program, along with reductions in overhead and staff.
-more-
Aastrom-4th Q FY2008 Financial Results
August 29, 2008
Page 4
Aastrom Conference Call Information
George W. Dunbar, President, Chief Executive Officer and Chief Financial Officer, Elmar R.
Burchardt, M.D., Ph.D., Vice President, Medical Affairs, and Julie Caudill, Controller of Aastrom
Biosciences, Inc., will host a conference call to review and discuss the fourth quarter and fiscal
year ended 2008 financial results at 11:00 a.m. (EDT) today, August 29, 2008. Interested parties
should call toll-free (877) 407-9205, or from outside the U.S. (201) 689-8054, fifteen minutes
before the start of the call to register and identify themselves as registrants of the Aastrom
Conference Call. Any registered caller on the toll-free line may ask to be placed in the queue
for the Question & Answer session. The call will be simulcast on the web at
http://www.investorcalendar.com/IC/CEPage.asp?ID=133137. A podcast of the call may be downloaded
from the web at the internet address above. If you are unable to participate during the live call,
the webcast will be available for replay at
http://www.investorcalendar.com/ for 60 days. Through
September 12, 2008, an audio replay of the call will be available by dialing toll-free (877)
660-6853, or from outside the U.S. (201) 612-7415; when prompted on the phone line, the Account #
is: 286 and the Conference ID# is: 293771.
About Aastrom Biosciences, Inc.
Aastrom is a leader in the development of autologous cell products for the repair or regeneration
of human tissue. The Companys proprietary Tissue Repair Cell (TRC) technology involves the use of
a patients own cells to manufacture products to treat a range of chronic diseases and serious
injuries. Aastroms TRC-based products contain increased numbers of stem and early progenitor
cells, produced from a small amount of bone marrow collected from the patient. The TRC technology
platform has positioned Aastrom to advance multiple products into clinical development. Ongoing
development activities are focused on applications of the technology to cardiac and vascular
regeneration. The Company currently has a cardiovascular regeneration product in Phase II
development for the treatment of dilated cardiomyopathy (DCM) (called the IMPACT-DCM trial) and
critical limb ischemia (called the RESTORE-CLI trial).
For more
information, visit Aastroms website at www.aastrom.com. (astmf)
This document contains forward-looking statements, including without limitation, statements
concerning clinical trial plans and expectations, clinical activity timing, intended product
development and commercialization objectives, adequacy of existing capital to support operations
for a specified time, future capital needs, and potential advantages and application of Tissue
Repair Cell (TRC) Technology, all of which involve certain risks and uncertainties. These
statements are often, but are not always, made through the use of words or phrases such as
anticipates, intends, estimates, plans, expects, we believe, we intend, and similar
words or phrases, or future or conditional verbs such as will, would, should, potential,
could, may, or similar expressions. Actual results may differ significantly from the
expectations contained in the forward-looking statements. Among the factors that may result in
differences are the inherent uncertainties associated with clinical trial and product development
activities, regulatory approval requirements, competitive developments, and the availability of
resources and the allocation of resources among different potential uses. These and other
significant factors are discussed in greater detail in Aastroms Annual Report on Form 10-K and
other filings with the Securities and Exchange Commission.
Financial Table Follows
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AASTROM BIOSCIENCES, INC.
(in thousands, except per share amounts)
CONSOLIDATED STATEMENT OF OPERATIONS DATA:
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Quarter ended June 30, |
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Year ended June 30, |
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2007 |
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2008 |
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2007 |
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2008 |
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(Unaudited) |
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REVENUES: |
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Total revenue |
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$ |
165 |
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$ |
149 |
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$ |
685 |
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$ |
522 |
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COSTS AND EXPENSES: |
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Cost of product sales and rentals |
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12 |
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25 |
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29 |
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56 |
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Research and development |
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3,480 |
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3,449 |
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11,443 |
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15,249 |
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Selling, general and administrative |
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1,896 |
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1,668 |
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8,682 |
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6,436 |
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Total costs and expenses |
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5,388 |
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5,142 |
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20,154 |
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21,741 |
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OTHER INCOME |
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394 |
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130 |
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1,875 |
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1,086 |
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NET LOSS |
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$ |
(4,829 |
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$ |
(4,863 |
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$ |
(17,594 |
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$ |
(20,133 |
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NET LOSS PER SHARE |
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(Basic and Diluted) |
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$ |
(.04 |
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$ |
(.04 |
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$ |
(.15 |
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$ |
(.16 |
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Weighted average number of common shares outstanding |
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119,766 |
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132,761 |
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119,523 |
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129,120 |
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CONSOLIDATED BALANCE SHEET DATA:
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June 30, 2008 |
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ASSETS: |
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Cash and cash equivalents |
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$ |
16,492 |
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Short-term investments |
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5,970 |
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Receivables, net |
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18 |
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Other current assets |
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1,583 |
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Property, net |
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2,154 |
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Total assets |
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$ |
26,217 |
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LIABILITIES AND SHAREHOLDERS EQUITY: |
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Current liabilities |
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$ |
2,100 |
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Long-term debt |
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783 |
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Shareholders equity |
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23,334 |
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Total liabilities and shareholders equity |
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$ |
26,217 |
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