Akela Pharma reports results for the three and nine months ended September 30, 2011

AUSTIN, TX, Nov. 15, 2011 /CNW Telbec/ - Akela Pharma, Inc. ("Akela"), (TSX: AKL) and PharmaForm, a leading specialty contract service provider in the area of pharmaceutical dosage form development and manufacturing, today announced its financial results for the three and nine months September 30, 2011.

Total consolidated revenues for the three months ended September 30, 2011 were $16.3 million, including $14.4 million of co-development revenue, as compared to $3.1 million, including $0.8 million of co-development revenue, for the same period during the previous year. Co-development revenues increased during the quarter from recognition of previously deferred revenues associated with terminated development agreements of the Company's development partners for the Fentanyl Taifun® program.

Total consolidated revenues for the six months ended September 30, 2011 were $25.6 million as compared to $9.6 million for the same period in 2010.

Consolidated net income for the three months ended September 30, 2011 was $13.3 million, or $0.41 per share, versus $0.1 million or nil per share, for the same period in 2010.

Consolidated net income for the nine months ended September 30, 2011 was $13.8 million, or $0.43 per share, versus a loss of $0.1 million or nil per share, for the same period in 2010.

  Three Months Ended September 30 Nine Months Ended September 30
  2011 2010 2011 2010
         
Total Comprehensive income(loss) 13,295 117 13,773 (56)
         
Basic 0.41 nil 0.43 nil
and diluted net income (loss) per share 0.4 nil 0.42 nil
         
Basic 32,390,338 31,515,338 32,390,338 31,515,338
and diluted weighted average shares 32,999,157 31,562,838 32,999,157 31,562,838

The Company had a cash balance of $0.48 million as of September 30, 2011 as compared with $0.21 million as of March 31, 2011.

About Akela Pharma Inc.

Akela Pharma is the parent company of PharmaForm, and its common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "AKL" with 32.4 million shares outstanding.

About PharmaForm

PharmaForm, a wholly-owned subsidiary of Akela Pharma, Inc, is a leading specialty contract manufacturer in the area of pharmaceutical dosage form development, specializing in controlled release and bioavailability enhancement technologies, such as hot melt extrusion, fluid bed processing, liquid filled capsules, and spray drying.  Through its diverse offerings, PharmaForm solutions help pharmaceutical and biotechnology clients reach their drug development targets, reduce development costs and accelerate time-to-market for their products.

This press release contains statements which may constitute forward-looking information under applicable Canadian securities legislation or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1955. Such forward-looking statements or information may include financial and other projections as well as statements regarding the company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect", anticipate", "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only expectations, and that the company's actual future results or performance may be materially different.

Forward-looking statements or information in this press release include, but are not limited to, statements or information concerning our ongoing drug development programs and collaborations as well as the possible receipt of future payments upon achievement of milestones.

Such forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause our actual results, events or developments to be materially different from results, events or developments expressed or implied by such forward-looking statements or information. Such factors include, among others, the possibility that risks associated with requirements for approvals by government agencies such as the FDA before products can be tested in clinical trials; the possibility that such government agency approvals will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to advance development; risks associated with the requirement that a drug candidate be found safe and effective after extensive clinical trials; our dependence on suppliers, collaborative partners and other third parties and the prospects and timing for negotiating supply agreements, corporate collaborations or licensing arrangements; our ability to attract and retain key personnel; and other factors as described in detail in our filings with the Canadian securities regulatory authorities at http:www.sedar.com.

Assumptions underlying our expectations regarding forward-looking statements or information contained in this press release include, among others, that future clinical trial results will be favorable; that our drug candidate will treat target diseases as intended; that we will raise enough capital, on reasonable terms and in a timely manner; that we will retain our key personnel; that we will obtain the necessary regulatory approvals.

In the event that any of these assumptions prove to be incorrect, or in the event that we are impacted by any of the risks identified above, we may not be able to continue in our business as planned.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with Canadian securities regulatory authorities, filed on SEDAR at http://www.sedar.com.

All forward-looking statements and information made herein are based on our current expectations as of the date hereof and we disclaim any intention or obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.

AKELA PHARMA INC.

Condensed Consolidated Statements of Financial Position
(Unaudited)

September 30, 2011 and December 31, 2010
(in thousands of US dollars, except share and per share data)

      As at
September 30,
2011
  As at
December 31,
2010
Assets          
Current assets:         
  Cash $ 476 $ 474
  Accounts receivable   1,075    1,590
  Prepaid expenses and other current assets   224   302
      1,775   2,366
Property and equipment   2,423   3,085
Intangible assets   39   74
Other assets   196   67
           
    $ 4,433 $ 5,592
Liabilities and Shareholders' Deficiency        
Current liabilities:        
  Accounts payable and accrued liabilities $ 6,757 $ 5,709
  Deferred revenue   270   3,527
  Income Tax Payable       266
  Current portion of long-term debt   163   1,037
      7,190   10,539
           
Deferred revenue   -   12,979
Long-term debt   7,522   6,443
Income taxes   259   -
Shareholders' deficiency:        
  Common shares  (unlimited authorized,  32,390,338 common shares issued
and outstanding with no par value at September 30, 2011 and December 31, 2010, respectively)
  67,739   67,739
  Additional paid-in capital   8,499   8,441
  Deficit   (86,776)   (100,549)
  Total shareholders' deficiency   (10,538)   (24,369)
 Commitments, contingencies and guarantees         
    $ 4,433 $ 5,592

See accompanying notes to audited consolidated financial statements.

AKELA PHARMA INC.
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
(Unaudited)

Three and nine months periods ended September 30, 2011 and 2010
(in thousands of US dollars, except share and per share data)

                   
 
 
Three Months Ended
September 30,
 
  Nine Months Ended
September 30,
    2011   2010     2011   2010
                   
Revenues $ 16,317 $ 3,984   $ 23,587 $ 9,635
                   
Expenses:                  
  Direct costs   2,345   1,307     4,930   4,138
  Selling, general & administrative   691   1,231     3,084   4,292
  Research and development   65   21     198   279
  Stock-based compensation   11   5     58   18
  Depreciation of property equipment   220   405     663   1,138
  Amortization of intangible assets   11   -     35   -
  Interest on long-term debt   84   103     210   283
  Unrealized loss on securities held for trading    -   2         78
  Foreign exchange (gain) loss   (405)   793     636   (348)
  Gain(loss) on expiration and valuation of warrants as debt   -   -         (187)
  Total expenses   3,022   3,867     9,814   9,691
                   
Income (loss) before under noted items   13,295   117     13,773   (56)
                   
Income (loss) before income taxes   13,295   117     13,773   (56)
                   
Total Comprehensive income (loss)   13,295   117     13,773   (56)
                   
Basic   0.41   0.00     0.43   (0.00)
and diluted net income (loss) per share   0.40   0.00   $ 0.42 $ (0.00)
                   
Basic   32,390,338   31,515,338     32,390,338   31,515,338
and diluted weighted average number of shares outstanding   32,999,157   31,562,838     32,999,157   31,562,838

See accompanying notes to audited consolidated financial statements.

AKELA PHARMA INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Nine months periods ended September 30, 2011 and 2011
(in thousands of US dollars, except share and per share data)

   
  Nine months ended September 30,
  2011 2010
Cash flows from operating activities:        
  Net income/(loss) and comprehensive income(loss) $ 13,773 $ (56)
  Adjustments for:        
    Amortization and write-off of property and equipment
662
1,138
    Amortization of intangible assets   35   -
    Stock-based compensation   58   18
    Unrealized (gain) loss on securities held for trading   -   78
    Unrealized foreign exchange loss   205   (332)
  Net changes in operating assets   -   -
    and liabilities (note 13)   (14,731)   (148)
    2   698
Cash flows from financing activities:        
  Restricted cash   -   938
  Proceeds from issuance of shares   -   -
  Repayment of convertible debentures   -   -
  Share issue costs   -   -
  Proceeds from issuance of long-term debt   -   750
  Addition to deferred financing fees   -   -
  Repayment of long-term debt       (1,523)
         
Cash flows from investing activities:        
  Acquisition of property and equipment       (40)
Net increase (decrease) in cash and cash equivalents   2   823
         
Cash and cash equivalents, beginning of period   474   107
Cash and cash equivalents, end of period $ - $ 930
Cash and cash equivalents are composed of:        
  Cash   476   930
         
  $ 476 $ 930

Supplemental cash flow disclosure (note 13)

See accompanying notes to unaudited consolidated financial statements.

 

SOURCE AKELA PHARMA INC.

For further information:

Akela Pharma Inc.

Gregory M. McKee
President and Chief Executive Officer
Tel: 512-834-0449

Profil de l'entreprise

AKELA PHARMA INC.

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PharmaForm

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