Aastrom's cash reaches $43 million, R&D expenses increase in Q4

By Lisa Kerner

Charlotte, N.C., Sept. 13 - Aastrom Biosciences, Inc. said it had $43.0 million in cash, cash equivalents and short-term investments at June 30, up from $32.4 million at June 30, 2005.

Aastrom's continued expansion of research and development activities, plus additional staffing and facility development, increased R&D expenses for the fourth quarter ended June 30 to $2.7 million from $1.9 million for the fourth quarter of fiscal 2005. For the fiscal year ended June 30, R&D expenses increased to $9.5 million from $7.2 million for fiscal 2005.

Total revenues for the fourth quarter, consisting of product sales and grant funding, were $328,000, compared with $96,000 for the same period in fiscal 2005.

The company reported total revenues for fiscal 2006 of $863,000, compared with $909,000 for the prior-year period.

Net loss for the fourth quarter grew to $4.3 million, or $0.03 per share, from a net loss of $3.4 million, or $0.03 per share, for the same period in 2005.

Aastrom had a net loss for the year of $16.5 million, compared with $11.8 million for fiscal 2005.

The company noted that its operations to date have been financed through sales of its equity securities, totaling about $184 million, followed by grant funding and collaborative payments, according to a 10-K filing with the Securities and Exchange Commission.

For the fiscal year ending June 30, 2007, Aastrom anticipates capital expenditures of about $1.3 million, primarily for facility construction.

While cash use is expected to average $1.8 million per month during fiscal 2007, the company said it should have sufficient funds from cash and interest to operate for the year.

Aastrom said in the 10-K that it intends to pursue additional funding through research and development agreements or grants, distribution and marketing agreements and through public or private debt or equity financing transactions.

In addition, the Ann Arbor, Mich.-based pharmaceutical company said it completed the accrual and treatment phase for all 36 patients enrolled in the U.S. phase 1/2 multi-center long bone fracture clinical trial, received a German human pharmaceuticals manufacturing license for its TRC-based cell products and executed the sale of roughly 15.9 million shares of Aastrom common stock for gross proceeds of $25.5 million during the fourth quarter.

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