Amorfix announces 2008 year end results



    TSX: AMF

    TORONTO, June 13 /CNW/ - Amorfix Life Sciences, a company focused on
treatments and diagnostics for brain wasting diseases, today announced its
operational and financial results for the year ended March 31, 2008, as well
as financial results for the fourth quarter.

    2008 Development and Corporate Highlights

    
    -   In February 2008, the UK National Institute for Biological Standards
        and Control (NIBSC) established a process to verify the performance
        of an acceptable blood test for vCJD. Based on performance of its EP-
        vCJD(TM) Blood Screening Assay in previous tests, Amorfix received
        and accepted an invitation from the British government to further
        qualify the assay using British blood samples. The NIBSC will provide
        blood samples from scrapie-infected sheep, normal human controls and
        patients with vCJD. Amorfix submitted the first blinded panel of
        sheep scrapie and normal sheep plasma samples for evaluation
        subsequent to year end.

    -   In February 2008, Amorfix received the results of a second blinded
        panel of spiked human vCJD brain and spleen prions provided by NIBSC
        which demonstrated a 10-fold improved sensitivity and improved
        reproducibility than the previous blinded panel results obtained with
        an earlier version of the assay. The Amorfix EP-vCJD(TM) Blood
        Screening Assay was able to detect with 100% accuracy spiked blood
        samples up to a 1:1,000,000 (1:100,000 of 10% homogenate) dilution of
        vCJD brain in blood.

    -   Amorfix developed a test that uses larger volumes of blood and can
        detect a 1:20,000,000 (1:2,000,000 of a 10% homogenate) dilution of
        brain in blood. This test could be used to verify the initial
        positive reaction of the screening assay and confirm the results.

    -   Demonstrated ability to detect endogenous scrapie prions in blood
        plasma from symptomatic sheep using the EP-TSE(TM) sheep scrapie
        assay on testing of a blinded panel provided by an independent third-
        party laboratory. Subsequent to year end, the company announced that
        the EP-TSE(TM) sheep scrapie assay could also detect endogenous
        prions in the blood plasma of preclinical (asymptomatic) scrapie
        infected sheep that were as young as 17 months of age.

    -   Completed the first development milestone of its Amyotrophic Lateral
        Sclerosis (ALS) program with Biogen Idec and established the proof of
        concept for both passive and active immunization approaches for the
        treatment of ALS in pilot animal studies. Amorfix subsequently
        initiated expanded preclinical animal studies using mouse models of
        ALS disease. Biogen Idec subscribed for 91,445 shares of Amorfix at a
        price of Cdn$1.76 per share for gross proceeds to Amorfix of
        US$150,000.

    -   Announced the discovery of misfolded superoxide dismutase-1 (SOD1)
        protein in the brain of Alzheimer's Disease patients which suggests
        that SOD1 is a common link between Alzheimer's and ALS. Based on
        these findings, Amorfix expanded its research and development program
        to include a therapy for Alzheimer's Disease.

    -   Amorfix's ALS technology was published in Nature Medicine in May
        2007.

    -   Achieved ISO 14385:2003 certification in preparation for the
        commercialization of its EP-vCJD(TM) Blood Screening Assay.

    -   Graduated to the TSX on July 25, 2007.
    

    "Amorfix has achieved significant progress in fiscal 2008 in the
development and validation of the vCJD assay. The UK process we entered in
February 2008 provides a clear path to access human vCJD samples for assay
validation. Using our experience gained in vCJD, Amorfix quickly developed a
sheep scrapie diagnostic assay that can detect prions in both preclinical and
clinical animals opening up a potential additional market opportunity," said
George Adams, President & Chief Executive Officer of Amorfix. "We also
advanced our therapeutic pipeline by meeting the first Biogen Idec milestone,
initiating larger preclinical studies in ALS and using our technology to
discover a link between ALS and Alzheimer's Disease that has generated a new
therapeutic program."

    Financial Results

    For the three months ended March 31, 2008 the Company reported a net loss
from operations of $1,920,439 ($0.05 per share) compared to net loss of
$1,829,533 ($0.05 per share) for the three months ended March 31, 2007.
    For the year ended March 31, 2008 the Company reported a net loss from
operations of $7,189,981 ($0.17 per share) compared to a net loss of
$4,233,754 ($0.13 per share) for the year ended March 31, 2007.
    Research and development (R&D) expenses for the three months ended 
March 31, 2008 were $1,680,454 compared with $1,429,122 for the three months
ended March 31, 2007. The increase was due mainly to additional R&D personnel
hired in 2008, partially offset by lower stock-based compensation expenses.
    R&D expenses for the year ended March 31, 2008 were $6,240,108 compared
with $3,407,098 for the corresponding period in 2007. The increase was due
mainly to increased R&D staffing, higher expenditures related to scale-up and
commercialization of the EP-vCJD(TM) Blood Screening Assay, development of the
EP-TSE(TM) sheep scrapie assay, and progress on the ALS therapeutic and AD
diagnostic programs.
    General and administrative expenses for the three months ended 
March 31, 2008 were $283,435 compared with $457,195 for the corresponding
period in 2007. The decrease was due mainly to lower stock-based compensation
expenses partially offset by higher personnel costs and professional fees.
    General and administrative expenses for the year ended March 31, 2008
were $1,259,197 compared with $1,021,478 for the corresponding period in 2007.
The increase resulted mainly from additional staffing to support R&D
activities, and legal and filing fees associated with graduating to the TSX
exchange in July 2007.
    At March 31, 2008, the Company had working capital of $8,119,896 and
41,678,380 common shares outstanding.

    Outlook

    
    The Company's fiscal 2009 diagnostic priorities are to:

    -   complete the NIBSC process to verify the performance of the
        EP-vCJD(TM) Blood Screening Assay which would lead to
        commercialization of the test;

    -   continue development and complete the assessment of the market
        opportunity for the EP-TSE(TM) sheep scrapie assay and engage a
        partner to assist in commercializing the test; and

    -   complete development of its Alzheimer's diagnostic test and validate
        its utility using AD blood.

    The Company's 2009 therapeutic priorities are to:

    -   complete the remaining two milestones under the Biogen Idec agreement
        and

    -   initiate preclinical studies for Alzheimer's Disease targeting
        misfolded SOD1.
    

    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 theranostics company developing
therapeutic products and diagnostic devices targeting brain-wasting diseases
including ALS, Alzheimer's Disease, Parkinson's Disease and variant
Creutzfeldt-Jakob Disease (vCJD). Amorfix's proprietary Epitope Protection(TM)
(EP) technology enables it to specifically identify very low levels of
aggregated misfolded proteins (AMP) in a sample of normal protein. Aggregated
misfolded proteins are a common element of many brain wasting diseases and the
ability to identify AMPs and understand their structure and mechanism of
folding are the first steps to developing new treatments for these devastating
diseases. Amorfix's lead programs are a diagnostic blood screening test for
vCJD and a therapy for ALS.

    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.

    
    Amorfix Life Sciences Ltd.
    (a development stage company)
    Balance Sheets
    As at March 31
                                                         2008           2007
                                                            $              $

    Assets

    Current assets
    Cash and cash equivalents                       2,212,776      1,660,594
    Marketable securities                           6,467,490     12,192,600
    Amounts receivable                                198,026        229,692
    Tax credits receivable                            400,082        283,527
    Prepaid expenses and deposits                     136,855        132,312
                                                 ----------------------------

    Total current assets                            9,415,229     14,498,725

    Property and equipment, net                       575,053        204,732
    Technology rights, net                                  -         30,873
                                                 ----------------------------

                                                    9,990,282     14,734,330
                                                 ----------------------------
                                                 ----------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities        1,295,333        663,482
                                                 ----------------------------

    Total current liabilities                       1,295,333        663,482
                                                 ----------------------------

    Shareholders' Equity

    Common shares                                  19,194,840     18,028,305
    Warrants and options                            2,815,838      2,404,259
    Contributed surplus                               187,777          4,056
    Accumulated other comprehensive income              2,247              -
    Deficit                                       (13,505,753)    (6,365,772)
                                                 ----------------------------

                                                    8,694,949     14,070,848
                                                 ----------------------------

                                                    9,990,282     14,734,330
                                                 ----------------------------
                                                 ----------------------------



    Amorfix Life Sciences Ltd.
    (a development stage company)
    Statements of Operations and Comprehensive Loss
                                                                 Period from
                                                                  January 23,
                                                                        2004
                                    Year ended     Year ended     (inception)
                                      March 31,      March 31,   to March 31,
                                          2008           2007           2008
                                             $              $              $

    Revenue
    Interest earned                    477,615        253,701        767,823
                                  -------------------------------------------

    Expenses
    Research and development         6,240,108      3,407,098     10,814,976
    General and administrative       1,259,197      1,021,478      2,740,494
    Amortization of property
     and equipment                     122,418         48,439        182,100
    Amortization of technology
     rights                             45,873         10,440         56,313
                                  -------------------------------------------

                                     7,667,596      4,487,455     13,793,883
                                  -------------------------------------------

    Loss before the undernoted      (7,189,981)    (4,233,754)   (13,026,060)

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

    Loss for the period             (7,189,981)    (4,233,754)   (13,505,753)
                                  -------------------------------------------

                                  -------------------------------------------
    Other comprehensive income
    Unrealized gain on available-
     for-sale marketable
     securities                         52,247
                                  -------------
    Comprehensive loss
     for the period                 (7,137,734)
                                  -------------
                                  -------------

    Basic and diluted loss
     per common share                    (0.17)         (0.13)
                                  ----------------------------
                                  ----------------------------

    Weighted average number of
     common shares outstanding      41,297,742     31,757,381
                                  ----------------------------
                                  ----------------------------



    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,
                                          2008           2007           2008
                                             $              $              $
    Cash provided by (used in)

    Operating activities
    Loss for the period             (7,189,981)    (4,233,754)   (13,505,753)
    Amortization of property
     and equipment                     122,418         48,439        182,100
    Amortization of technology
     rights                             45,873         10,440         56,313
    Stock-based compensation           916,983        862,586      1,928,538
    Other non-cash expenses                  -         50,000        235,115
    Changes in non-cash working
     capital                           542,419       (133,340)       469,908
                                  -------------------------------------------

                                    (5,562,288)    (3,395,629)   (10,633,779)
                                  -------------------------------------------

    Investing activities
    Purchase of marketable
     securities                     (1,608,840)   (13,715,070)   (21,673,910)
    Sale of marketable securities    7,386,197      6,724,405     15,208,667
    Purchase of property
     and equipment                    (492,739)      (168,082)      (757,153)
    Purchase of technology rights      (15,000)       (41,313)       (56,313)
                                  -------------------------------------------

                                     5,269,618     (7,200,060)    (7,278,709)
                                  -------------------------------------------

    Financing activities
    Issuance of common shares,
     net of cash issue costs           160,944        422,213      4,383,129
    Issuance of common share units,
     net of cash issue costs                 -      9,228,884     11,973,069
    Issuance of common shares on
     exercise of agent options
     and warrants                      568,408      2,126,524      2,980,920
    Issuance of common shares on
     exercise of options               115,500        364,868        521,368
    Other financing activities               -              -        266,778
                                  -------------------------------------------

                                       844,852     12,142,489     20,125,264
                                  -------------------------------------------

    Net increase (decrease) in cash    552,182      1,546,800      2,212,776

    Cash - Beginning of period       1,660,594        113,794              -
                                  -------------------------------------------

    Cash - End of period             2,212,776      1,660,594      2,212,776
                                  -------------------------------------------
                                  -------------------------------------------
    


    %SEDAR: 00022789E




For further information:

For further information: Dr. George Adams, President & Chief Executive
Officer, Amorfix Life Sciences Ltd., Tel: (416) 847-6959, Fax: (416) 847-6899,
george.adams@amorfix.com; James Parsons, Chief Financial Officer, Amorfix Life
Sciences Ltd., Tel: (416) 847-6929, Fax: (416) 847-6899,
james.parsons@amorfix.com

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Amorfix Life Sciences Ltd.

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