BiolineRX Ltd. (TASE:BLRX) swung to profit and quadrupled its revenue for the third quarter, on income from its deal with Cypress Bioscience Inc. (Nasdaq: CYPB), which has an out-license to complete clinical trials and regulatory procedures for one of the Israeli company's drugs.
BiolineRX's revenue rose to NIS 113.2 million for the third quarter of 2010 from NIS 26.1 million for the corresponding quarter of 2009. Cash flow from operations was NIS 67.5 million for the third quarter compared with a negative cash flow of NIS 17.1 million for the corresponding quarter.
Operating profit was NIS 76.8 million for the third quarter compared with an operating loss of NIS 17.1 million for the corresponding quarter, and the company posted a net profit of NIS 73.1 million (NIS 0.59 per share) compared with a net loss of NIS 17.2 million.
BiolineRX CEO Dr. Kinneret Savitsky said, "We're pleased by the third quarter results, which summarize a period of very intensive and successful work at the company over the past year. These results strengthen our business model and the company's substantial progress, as is reflected in our net profit, which is not routine for a biotechnology company.
"At the same time, our science team continues to review projects and to constantly seek new studies for development with great business potential for the company and its shareholders."
During the third quarter, BiolineRX completed commercialization of its innovative drug BL-1020 for the treatment of schizophrenia, after obtaining permission from the Ministry of Industry, Trade and Labor for the licensing deal with Cypress. BiolineRX received a $30 million first payment on the deal.
BiolineRX is preparing for an offering of shares on Nasdaq, and published a prospectus to raise $35 million. The company will use the proceeds to further develop molecules undergoing clinical trials and of other molecules in the preclinical trial stage.
BiolineRX's share price rose 2.1% by mid-afternoon to NIS 3.19, giving a market cap of NIS 390 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2010
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