Amorfix announces 2007 year end results



    TSX Venture: AMF

    TORONTO, June 11 /CNW/ - Amorfix Life Sciences (TSX-V:AMF), a company
focused on diagnostics and treatments for brain wasting diseases, today
announced its operational and financial results for the year ended March 31,
2007, as well as financial results for the fourth quarter.

    
    2007 Development Highlights

    -   Successfully completed blinded panels of human blood samples, spiked
        with vCJD prions, provided by the UK government.
    -   Successfully completed the transfer of a research-based vCJD assay to
        a commercial scale 96 well high throughput platform enabling a
        significant increase in the number of tests performed daily.
    -   Expanded the Company's technology platform by obtaining the exclusive
        worldwide rights to additional novel targets on superoxide
        dismutase-1 (SOD1), which is a protein known to misfold and aggregate
        in Amyotrophic Lateral Sclerosis (ALS).
    -   Announced a research and investment collaboration agreement with
        Biogen Idec which includes an option for Biogen Idec to license the
        exclusive worldwide rights to Amorfix's technology to develop and
        commercialize therapeutic products directed against ALS.
    -   Published a report in Nature Medicine, subsequent to year end,
        related to Amorfix's ALS technology which demonstrates, in animal
        models, that the misfolded SOD1 protein was found in motor neurons
        prior to disease symptoms and correlates to the progression of ALS.
    -   Achieved a significant technical milestone by demonstrating that
        Epitope Protection(TM) technology is able to detect protected sites
        within A-beta amyloid aggregates which are formed in Alzheimer's
        disease.
    -   Adapted its Epitope Protection(TM) technology platform to detect
        sheep scrapie brain prions spiked into plasma.
    -   Named as a "Technology Pioneer" by the World Economic Forum.
    -   Raised gross proceeds of approximately $10,000,000 by issuing
        7,694,000 units at a price of $1.30 per unit through a private
        placement.
    

    "Over the past twelve months we have demonstrated significant progress
across our diagnostic and therapeutic product pipeline. Our results from the
blinded spiked human vCJD panel were verified by the UK government and we
successfully completed the transfer of our vCJD assay to a commercial
platform. We anticipate that our vCJD diagnostic test kits will be available
for research purposes in the coming weeks and we intend to launch the vCJD
test for commercial purposes in the first three months of 2008," said George
Adams, President & Chief Executive Officer of Amorfix. "We also advanced our
therapeutic pipeline through the partnership with Biogen Idec and our work
related to ALS that was recently published in Nature Medicine. The majority of
the proceeds from the recent $10 million private placement will be used to
continue to advance our therapeutic development programs in misfolded proteins
including ALS and an additional central nervous system target, and to advance
our Alzheimer's disease diagnostic."

    Financial Results

    For the three months ended March 31, 2007 the Company reported a net loss
from operations of $1,829,533 ($0.05 per share) compared to net loss of
$598,677 ($0.02 per share) for the three months ended March 31, 2006.
    For the year ended March 31, 2007 the Company reported a net loss from
operations of $4,233,754 ($0.13 per share) compared to a net loss of
$1,967,014 ($0.10 per share) for the year ended March 31, 2006.
    Research and development expenses for the three months ended March 31,
2007 were $1,429,122 compared with $472,550 for the three months ended
March 31, 2006. The difference was attributable mainly to expenses for a
larger research and development team on expanded projects in 2007 versus 2006.
Stock-based compensation expense was also higher.
    Research and development expenses for the year ended March 31, 2007 were
$3,407,098 compared with $1,100,745 for the corresponding period in 2006. The
difference was primarily due to higher research and development staffing in
2007 and higher vCJD program costs incurred to produce a high throughput
version of the vCJD assay. Expenses also increased on the initiation of the
Alzheimer's diagnostic and ALS therapeutic programs in 2007. Stock-based
compensation expense was also higher.
    General and administrative expenses for the three months ended March 31,
2007 were $457,195 compared with $138,999 for the corresponding period in
2006. The majority of the increase was due to stock-based compensation
expenses.
    General and administrative expenses for the year ended March 31, 2007
were $1,021,478 compared with $411,840 for the corresponding period in 2006.
The increase was due mainly to stock-based compensation expenses and higher
legal and advisory expenses.
    At March 31, 2007, the Company had working capital of $13,835,243
compared to $5,214,438 at March 31, 2006. The increase in working capital
resulted from a private placement of 7,694,000 common share units at $1.30 per
unit for net proceeds of $9,178,884 in March 2007.
    As at March 31, 2007 the Company had 40,456,749 common shares
outstanding.

    Outlook

    Amorfix has established two platforms for future development and
shareholder value - diagnostics and therapeutics. The Company's fiscal 2008
diagnostic priorities are the commercialization of its proprietary Epitope
Protection(TM) diagnostic test for vCJD and the continued development of its
Alzheimer's diagnostic test. The Company's therapeutic priorities are focused
on the ALS research collaboration with Biogen Idec and the initiation of a
second therapeutic program. Upcoming milestone events expected in fiscal 2008
include:

    
    -   Completion of the first of three development milestones related to
        its ALS program with Biogen Idec.
    -   Announce a second therapeutic program targeting a central nervous
        system disease.
    -   Achieve ISO certification in preparation for the commercialization of
        its vCJD diagnostic test.
    -   Obtain a self declared CE mark designation for its vCJD diagnostic
        test.
    -   Commercial launch of its vCJD diagnostic test.
    -   Achieve femtogram sensitivity for its Alzheimer's diagnostic test and
        testing of human blood samples.
    

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

    About Amorfix

    Amorfix is an emerging theranostics company focused on the diagnosis and
treatment of brain-wasting diseases, where aggregated misfolded proteins
(AMPs) are prevalent. These include "prions", the infectious agents of the
Transmissible Spongiform Encephalopathies (TSE), such as BSE and variant CJD,
as well as degenerative diseases such as Alzheimer's Disease, ALS and
Parkinson's Disease. Amorfix is focused on discovering and commercializing
technologies to become the world leader on AMP diseases. The company will use
this knowledge to develop diagnostic kits, treatments and vaccines for AMP
diseases.

    The TSX Venture Exchange 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.


    
    Amorfix Life Sciences Ltd.
    (a development stage company)
    Balance Sheets
    As at March 31, 2007 and 2006

                                                          2007          2006
                                                             $             $
    Assets

    Current assets
    Cash and cash equivalents                        1,660,594       113,794
    Marketable securities                           12,192,600     5,251,935
    Amounts receivable                                 229,692        80,386
    Tax credits receivable                             283,527             -
    Prepaid expenses                                   132,312        16,201
                                                   --------------------------

    Total current assets                            14,498,725     5,462,316

    Property and equipment, net                        204,732        85,089
    Technology rights, net                              30,873             -
                                                   --------------------------

                                                    14,734,330     5,547,405
                                                   --------------------------
                                                   --------------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities           663,482       247,878
                                                   --------------------------

    Total current liabilities                          663,482       247,878
                                                   --------------------------

    Shareholders' Equity

    Common shares                                   18,028,305     6,692,671
    Warrants and options                             2,404,259       738,874
    Contributed surplus                                  4,056             -
    Deficit                                         (6,365,772)   (2,132,018)
                                                   --------------------------

                                                    14,070,848     5,299,527
                                                   --------------------------

                                                    14,734,330     5,547,405
                                                   --------------------------
                                                   --------------------------


    Amorfix Life Sciences Ltd.
    (a development stage company)
    Statements of Operations
                                                                 Period from
                                                                  January 23,
                                                                        2004
                                      Year ended    Year ended    (inception)
                                        March 31,     March 31,  to March 31,
                                            2007          2006          2007
                                               $             $             $

    Revenue
    Interest earned                      253,701        36,507       290,208
                                     ----------------------------------------

    Expenses
    Research and development           3,407,098     1,100,745     4,574,868
    General and administrative         1,021,478       411,840     1,531,297
    Amortization of property and
     equipment                            48,439        11,243        59,682
    Amortization of technology rights     10,440             -        10,440
                                     ----------------------------------------

                                       4,487,455     1,523,828     6,176,287
                                     ----------------------------------------

    Loss before the undernoted        (4,233,754)   (1,487,321)   (5,886,079)

    Costs related to reverse
     takeover of Luxor                         -       479,693       479,693
                                     ----------------------------------------

    Loss for the period               (4,233,754)   (1,967,014)   (6,365,772)
                                     ----------------------------------------
                                     ----------------------------------------

    Basic and diluted loss per share       (0.13)        (0.10)
                                     --------------------------
                                     --------------------------

    Weighted average number of
     common shares outstanding        31,757,381    19,306,005
                                     --------------------------
                                     --------------------------



    Amorfix Life Sciences Ltd.
    (a development stage company)
    Statements of Cash Flows
                                                                 Period from
                                                                  January 23,
                                                                        2004
                                      Year ended    Year ended    (inception)
                                        March 31,     March 31,  to March 31,
                                            2007          2006          2007
                                               $             $             $
    Cash provided by (used in)

    Operating activities
    Loss for the period               (4,233,754)   (1,967,014)   (6,365,772)
    Amortization of property and
     equipment                            48,439        11,243        59,682
    Amortization of technology rights     10,440             -        10,440
    Stock-based compensation             862,586       148,969     1,011,555
    Unrealized loss on marketable
     securities                           50,000             -        50,000
    Non-cash interest expense                  -         1,923         2,673
    Non-cash costs related to reverse
     takeover of Luxor                         -       232,442       232,442
    Changes in non-cash working
     capital                            (133,340)       28,734       (72,511)
                                     ----------------------------------------

                                      (3,395,629)   (1,543,703)   (5,071,491)
                                     ----------------------------------------

    Investing activities
    Purchase of marketable
     securities                      (13,715,070)   (6,350,000)  (20,065,070)
    Sale of marketable securities      6,724,405     1,098,065     7,822,470
    Purchase of property and
     equipment                          (168,082)      (96,332)     (264,414)
    Purchase of technology rights        (41,313)            -       (41,313)
                                     ----------------------------------------

                                      (7,200,060)   (5,348,267)  (12,548,327)
                                     ----------------------------------------

    Financing activities
    Issuance of common shares, net
     of cash issue costs                 422,213     3,141,967     4,222,185
    Issuance of common share units,
     net of cash issue costs           9,228,884     2,744,185    11,973,069
    Issuance of common shares on
     exercise of warrants              2,126,524       285,988     2,412,512
    Issuance of common shares on
     exercise of options                 364,868        41,000       405,868
    Cash acquired on reverse takeover
     of Luxor                                  -       141,778       141,778
    Issuance of promissory note                -       100,000       125,000
                                     ----------------------------------------

                                      12,142,489     6,454,918    19,280,412
                                     ----------------------------------------

    Net increase (decrease) in cash
     and cash equivalents during
     the period                        1,546,800      (437,052)    1,660,594

    Cash and cash equivalents
     - Beginning of period               113,794       550,846             -
                                     ----------------------------------------

    Cash and cash equivalents
     - End of period                   1,660,594       113,794     1,660,594
                                     ----------------------------------------
                                     ----------------------------------------

    Supplemental cash flow information
    Common shares, warrants and
     options issued on reverse
     takeover                                  -       346,459       346,204
    Common share purchase warrants
     issued as agents' compensation      172,346       176,858       349,204
    Promissory note plus accrued
     interest eliminated on
     amalgamation                              -       127,673       127,673
    Non-cash amalgamation costs
     applied to common shares                  -       141,778       141,778
    

    %SEDAR: 00022789E




For further information:

For further information: Dr. George Adams, President & Chief Executive
Officer, Amorfix Life Sciences Ltd., Tel: (416) 482-3813, Fax: (416) 482-3811,
george.adams@amorfix.com; James Parsons, Chief Financial Officer, Amorfix Life
Sciences Ltd., Tel: (416) 482-3814, Fax: (416) 482-3811,
james.parsons@amorfix.com

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Amorfix Life Sciences Ltd.

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