AMORFIX ANNOUNCES THIRD QUARTER FISCAL 2011 RESULTS AND $0.51 MILLION PRIVATE PLACEMENT

TSX: AMF

TORONTO, Feb. 14 /CNW/ - Amorfix Life Sciences, a product development company focused on the development of diagnostics and therapeutics for misfolded protein diseases, today announced its operational and financial results for the three and nine months ended December 31, 2010 and an offering of up to $.51M in common shares on a non-brokered private placement basis.

"We have made significant progress on both our cancer antibody program and the development of a human diagnostic test for Alzheimer's disease (AD) while reducing our cash burn, said Dr. Robert Gundel, Chief Executive Officer of Amorfix.   "With our partner, Epitomics, we have developed high affinity antibodies to prion protein disease specific epitopes (DSEs), an important first step in developing antibodies that are much more specific and therefore have the potential to be more effective with less harmful side effects  than traditional products used for the treatment of cancer.  We have promising results for our Alzheimer's program, with the detection of a signal from aggregated beta amyloid in the spinal fluid of AD patients. This is a significant first step towards our goal of developing and commercializing an assay that will accurately identify patients with AD. AD is a disease that currently affects more than 5 million people in North America; a number that is expected to grow dramatically as the population ages.  While there is still work to do, this represents an important milestone towards the development of a valuable asset for our company.  A new diagnostic tool could enable the early detection and subsequent treatment of AD, while being a major adjunct to clinical research in the field."    

Recent Corporate Highlights

On November 23, 2010, the Company, with its partner Epitomics, announced that high affinity antibodies to prion protein DSEs have been produced, which bind preferentially to several primary cancer cells and tumor cell lines, but not normal cells.  The Company is now in the process of fully characterizing the binding properties and biological activity of these antibodies.  The Company expects to initiate animal model proof of concept studies for the PrP antibodies in the second quarter of this year. 

Building on this success with Epitomics the Company entered into further agreements with Epitomics to develop high affinity monoclonal antibodies against specific DSEs on misfolded Fas receptor , misfolded CD38, and several other undisclosed targets.    The Company's other partners, Aragen and QED, will also continue to work on improving the antibodies they are developing with their technology.

On January 07, 2011, the Company announced that it has detected a signal from aggregated Abeta in human CSF as an important milestone in the development of the human AD diagnostic.  The samples tested were collected from AD patients and compared with samples obtained from aged-matched control subjects.  The Company is now working to further optimize this signal and improve the level of sensitivity and specificity required for commercialization. 

Under the terms of the non-brokered private placement, the company will issue up to 1,500,000 common shares of the Company at a price of $0.34 per common share for gross proceeds of $510,000.

The Company intends to use the net proceeds of the private placement for general corporate purposes.  All the securities issued in connection with the private placement will be subject to a four month hold period.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act.  This press releases shall not constitute an offer ot sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Financial Results

The net loss for the three months ended December 31, 2010 was $795,415 compared to $1,149,932 for the three months ended December 31, 2009.  For the nine months ended December 31, 2010, the net loss was $2,545,888 compared to $3,607,578 for the nine months ended December 31, 2009.

For the three and nine months ended December 31, 2010 revenue for services and sales was $10,048 and $94,947, respectively as compared to $44,911 in both comparative periods.  Substantially all of this revenue was for its A4 test which the Company began marketing in the third quarter of fiscal 2010. For the nine months ended December 31, 2010, revenue from license fees was $1,030,600 compared to $nil for the comparable period.  The Company entered into a license agreement with Biogen Idec in July 2010 and received a US$1,000,000 non-refundable fee.   

Research and development expenditures for the three months ended December 31, 2010 were $584,873 compared to $935,439 for the three months ended December 31, 2009. Research and development expenditures decreased for the three months ended December 31, 2010 due mainly to reduced staffing levels and reduced program expenditures associated with the decision to suspend commercialization of the Company's vCJD and AD therapeutic programs,  offset by higher expenses for both the AD diagnostic and ProMIS™ cancer antibody development programs. Research and development expenditures for the nine months ended December 31, 2010 were $2,581,361 compared to $2,794,672 for the nine months ended December 31, 2009.   Research and development expenses decreased for the nine months ended December 31, 2010 due to lower program expenditures, associated with the suspension of the vCJD program and AD therapeutic programs, offset by higher expenditures related to both its ProMIS™ and AD diagnostic programs.

General and administrative costs for the three months ended December 31, 2010 were $206,122 compared to $247,093 in the comparable prior year period and for the nine months ended December 31, 2009 were $946,823 compared to $844,660 in the comparable period last year. The decrease for the three months ended December 31, 2010 resulted mainly from lower stock-based compensation.  The increase for the nine months ended December 31, 2010 resulted mainly from severance costs and higher consulting fees, partially offset by lower stock-based compensation.

At December 31, 2010, the Company had working capital of $2,480,115 and 48,699,987 common shares outstanding.

Outlook

The Company's Fiscal 2011 and Fiscal 2012 research priorities continue to be:

  • Advance our novel antibodies and vaccines for the treatment of ALS through our partnerships with Biogen Idec and PREVENT;
  • Complete development of a human Alzheimer's test adapting the A4 test protocol to detect aggregated Abeta, the hallmark of the disease, in human CSF and plasma
  • Grow the revenue from our A4 amyloid testing service for cell culture, tissue, CSF and blood in animal models of Alzheimer's disease; and
  • Advance our ProMIS™ antibody program targeting disease specific epitopes for both therapeutics and companion diagnostics for cancer and other misfolded protein diseases to a lead compound for late-stage preclinical development;

Additional information about the Company, including the MD&A and financial results may be found on SEDAR at www.sedar.com.

About Amorfix

Amorfix Life Sciences Ltd. (TSX:AMF) is a product development company developing therapeutic products and diagnostic devices targeting misfolded protein diseases including ALS, cancers, and Alzheimer's Disease (AD). Amorfix utilizes its computational discovery platform, ProMIS™, to predict novel Disease Specific Epitopes ("DSE") on the molecular surface of misfolded proteins. Amorfix's lead programs include therapeutics and companion diagnostics for cancers and antibodies and vaccines to DSEs in ALS and AD. Amorfix's proprietary technology enables it to specifically identify very low levels of misfolded proteins in a sample. The Company's diagnostic programs include an ultrasensitive method for the detection of aggregated beta-Amyloid in brain tissue and blood from animal models of AD, months prior to observable amyloid formation, and a human screening test for Alzheimer's. For more information about Amorfix, visit www.amorfix.com.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release may contain certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Amorfix Life Sciences Ltd.

For further information:

Dr. Robert Gundel
President and Chief Executive Officer
Amorfix Life Sciences Ltd.
Tel: (416) 847-6957
Fax: (416) 847-6899
bob.gundel@amorfix.com
Janet Clennett
Acting Chief Financial Officer
Amorfix Life Sciences Ltd.
Tel: (416) 847-6926
Fax: (416) 847-6899
janet.clennett@amorfix.com

Profil de l'entreprise

Amorfix Life Sciences Ltd.

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