Biopure Corp. (BPUR, Financial) filed Quarterly Report for the period ended 2009-04-30.
Biopure Corp. is a leading developer manufacturer and marketer of oxygentherapeutics. The oxygen therapeutics are pharmaceuticals administeredintravenously into the circulatory system to increase oxygen delivery to the body's tissues. The company has developed and manufactured two hemoglobin-based oxygen therapeutic products -- Hemopure for human use and Oxyglobin for veterinary use. Biopure Corp. has a market cap of $11.12 million; its shares were traded at around $0.28 with and P/S ratio of 3.55.
Cost of revenues includes costs of both Oxyglobin and Hemopure. Cost of revenues was $1.0 million for the first six months of fiscal 2009, compared to $4.6 million for the same period in 2008. Hemopure cost of revenues was $3.0 million lower for the first six months of fiscal 2009 than for the first six months of fiscal 2008 because of the suspension of manufacturing and reduction of manufacturing personnel described above. This suspension in operations caused a reclassification of the underlying costs, yielding a reduction in cost of goods sold with a correlating increase in research and development expense.
Research and development costs decreased from $3.2 million for the first six months of fiscal 2008 to $1.3 million for the first six months of fiscal 2009 because of a severe curtailment of operations in the first quarter of 2009. Sales and marketing expenses decreased from $728,000 for the first six months of fiscal 2008 to $150,000 for the first six months of fiscal 2009, also because of reduced activity. The sales personnel in South Africa were terminated in November 2008.
General and administrative expenses were $3.2 million for the first six months of fiscal 2009 compared to $3.9 million for the same period in 2008 because of staff reductions and related reductions in expenses.
Cost of revenues includes costs of both Oxyglobin and Hemopure. Cost of revenues was $9,000 for the three months ended April 30, 2009, compared to $1.0 million for the same period in 2008. There were no cost of revenues for Oxyglobin in the quarter ended April 30, 2009, because substantially all of the Companys Oxyglobin inventory was sold to the Companys U.S. distributor in the first quarter of 2009. Hemopure cost of revenues was $1.2 million lower for the three months ended April 30, 2009 than for the same period in 2008 because of the suspension of manufacturing and reduction of manufacturing personnel described above and lower sales in 2009.
Research and development costs decreased from $1.8 million for the three months ended April 30, 2008 to $208,000 for the three months ended April 30, 2009 because of lack of personnel and activity. Sales and marketing expenses decreased from $448,000 for the three months ended April 30, 2008 to $54,000 for the three months ended April 30, 2009 also due to reduced activity and the termination in November 2008 of the sales staff in South Africa.
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Biopure Corp. is a leading developer manufacturer and marketer of oxygentherapeutics. The oxygen therapeutics are pharmaceuticals administeredintravenously into the circulatory system to increase oxygen delivery to the body's tissues. The company has developed and manufactured two hemoglobin-based oxygen therapeutic products -- Hemopure for human use and Oxyglobin for veterinary use. Biopure Corp. has a market cap of $11.12 million; its shares were traded at around $0.28 with and P/S ratio of 3.55.
Highlight of Business Operations:
At April 30, 2009, the Company had $245,000 in cash and cash equivalents. During the first fiscal quarter of 2009, the Company drastically reduced operations, a process that began in the second quarter of fiscal 2008. In January 2009, the Company sold substantially all of its existing inventory of Oxyglobin to the Companys U.S. distributor, an affiliate of the Companys European distributor, for sale in Europe and the United States. The proceeds of that sale were $796,000. In March 2009, the Company also sold its manufacturing facility in Pennsylvania and entered into a lease of the facility from the purchaser. The consideration was for $1.2 million in cash and approximately $230,000 in rent abatements. The Company has leased the facility, and, as additional consideration from the purchaser, the initial term of the lease is at a rent the Company believes to be below market. The initial term of the lease is three years; during this term the rental is approximately $6,000 per month. The Company has the option to renew for five additional terms of five years each at increasing rates.Cost of revenues includes costs of both Oxyglobin and Hemopure. Cost of revenues was $1.0 million for the first six months of fiscal 2009, compared to $4.6 million for the same period in 2008. Hemopure cost of revenues was $3.0 million lower for the first six months of fiscal 2009 than for the first six months of fiscal 2008 because of the suspension of manufacturing and reduction of manufacturing personnel described above. This suspension in operations caused a reclassification of the underlying costs, yielding a reduction in cost of goods sold with a correlating increase in research and development expense.
Research and development costs decreased from $3.2 million for the first six months of fiscal 2008 to $1.3 million for the first six months of fiscal 2009 because of a severe curtailment of operations in the first quarter of 2009. Sales and marketing expenses decreased from $728,000 for the first six months of fiscal 2008 to $150,000 for the first six months of fiscal 2009, also because of reduced activity. The sales personnel in South Africa were terminated in November 2008.
General and administrative expenses were $3.2 million for the first six months of fiscal 2009 compared to $3.9 million for the same period in 2008 because of staff reductions and related reductions in expenses.
Cost of revenues includes costs of both Oxyglobin and Hemopure. Cost of revenues was $9,000 for the three months ended April 30, 2009, compared to $1.0 million for the same period in 2008. There were no cost of revenues for Oxyglobin in the quarter ended April 30, 2009, because substantially all of the Companys Oxyglobin inventory was sold to the Companys U.S. distributor in the first quarter of 2009. Hemopure cost of revenues was $1.2 million lower for the three months ended April 30, 2009 than for the same period in 2008 because of the suspension of manufacturing and reduction of manufacturing personnel described above and lower sales in 2009.
Research and development costs decreased from $1.8 million for the three months ended April 30, 2008 to $208,000 for the three months ended April 30, 2009 because of lack of personnel and activity. Sales and marketing expenses decreased from $448,000 for the three months ended April 30, 2008 to $54,000 for the three months ended April 30, 2009 also due to reduced activity and the termination in November 2008 of the sales staff in South Africa.
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