Amorfix announces first quarter fiscal 2011 results

TSX: AMF

TORONTO, Aug. 12 /CNW/ - Amorfix Life Sciences, a product development company focused on misfolded protein diseases, today announced its operational and financial results for the three months ended June 30, 2010.

"We have had an excellent first quarter highlighted by significant product development deals such as the Biogen Idec and PREVENT licensing agreements that will advance our ALS antibodies and vaccine technologies," said Dr. Robert Gundel, Chief Executive Officer of Amorfix. "We will continue to pursue additional business deals and advance our growing innovative product pipeline for the treatment of neurodegenerative disease and cancer. In addition, we are working hard to grow the A(4) assay revenue stream and focused on the development of a human Alzheimer's disease diagnostic which has the potential to revolutionize how Alzheimer's disease is diagnosed and treated."

Recent Corporate Highlights

In July 2010, Amorfix announced the completion of a licensing agreement granting Biogen Idec (NASDAQ: BIIB) exclusive worldwide rights to Amorfix's lead amyotrophic lateral sclerosis (ALS) monoclonal antibodies. The antibodies have shown efficacy in animal models of ALS and Biogen Idec will now, at its expense, complete the development and prepare for clinical trials.

Under the agreement, Biogen Idec will receive the exclusive worldwide license to develop and commercialize Amorfix's Disease Specific Epitopes (DSE(TM)) antibodies for ALS while Amorfix retains all rights for diagnostics. Amorfix received an up-front payment of US$1 million and is eligible to receive milestone payments and royalties on sales.

In June 2010, the Company and Pan-Provincial Vaccine Enterprise Inc. (PREVENT) of Saskatoon, Saskatchewan, announced that the two groups have entered into a licensing agreement granting PREVENT exclusive worldwide rights to Amorfix's lead amyotrophic lateral sclerosis (ALS) vaccines. Under the license terms, PREVENT will develop vaccine formulations, finish preclinical studies for regulatory approvals and conduct clinical testing of the vaccines at their cost. Upon successful completion of Phase I clinical trials both parties have an option to lead the commercialization process under a cost-sharing and revenue-sharing arrangement which includes royalty payments.

In June 2010, Amorfix and QED Bioscience entered into an agreement to develop high-affinity monoclonal antibodies against a number of targets for cancer. Under the agreement, QED will generate monoclonal antibodies against several DSE's on misfolded CD38 protein. The DSE's were identified by Amorfix using our proprietary ProMIS(TM) computational platform discovery technology. With our previous announcements of agreements with Epitomics and Aragen Biosciences, Amorfix now has three cancer antibody development projects underway.

In July 2010, Amorfix attended the International Conference on Alzheimer's Disease (ICAD 2010) to promote its A(4) assay and to present its paper on new findings important for preclinical research of Alzheimer's Disease (AD). Amorfix used its A(4) test to compare the rate of accumulation of aggregated Abeta in the brain tissue of various mouse models of AD from animals 1 month to 14 months of age. These new findings will provide researchers with the ability to assess drug effects at critical time points when aggregation is high or low or accelerating in mouse models of AD through the use of our A(4) testing services.

In July 2010. Amorfix and reMYND NV formed a partnership to offer the Amorfix A(4) amyloid testing service to reMYND's contract research clients. reMYND's offers an extensive portfolio of preclinical in-vivo efficacy, pharmacokinetic and safety testing of experimental Alzheimer therapies using proprietary mouse models of Alzheimer's disease.

Financial Results

For the three months ended June 30, 2010 the Company reported a net loss from operations of $1,724,745 ($0.04 per share) compared to net loss of $1,170,741 ($0.03 per share) for the three months ended June 30, 2009.

The Company recorded service revenue from the A(4) test and reagent sales of $23,773 in the current quarter.

Research and development expenses for the three months ended June 30, 2010 were $1,346,404 compared with $880,188 for the three months ended June 30, 2009. The increase was due mainly to severance costs associated with the decision to suspend commercialization of the vCJD program and higher costs on the ProMIS(TM) cancer antibody development program partially offset by lower third party costs on the vCJD and AD therapeutic programs compared to the first quarter of last year.

General and administration costs for the three months ended June 30, 2010 were $293,124 which was comparable to $290,808 in the three months ended June 30, 2009.

At June 30, 2010, the Company had working capital of $2,985,519 and 48,514,418 common shares outstanding.

Outlook

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

    
    -   Advance our ProMIS(TM) 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;
    -   Advance our novel antibodies and vaccines for the treatment of ALS
        through our partnerships with Biogen Idec and PREVENT;
    -   Grow the revenue from our A(4) amyloid testing service for cell
        culture, tissue and blood in animal models of Alzheimer's disease;
        and
    -   Complete development of a human Alzheimer's test adapting the A(4)
        test protocol to detect aggregated Abeta, the hallmark of the
        disease, in human plasma and cerebro-spinal fluid.
    

The Company is also announcing that Mr. Graham Strachan, Chair of the Board will not be standing for re-election at the Company's annual meeting and that Dr. Philippe Couillard has now assumed the role of Chair of the Board to effect a smooth transition. Dr. Couillard noted, "Mr. Strachan's excellent leadership and guidance since the inception of Amorfix in 2005 have been significant and are very much appreciated. We wish him well in his future endeavours."

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 misfolded protein diseases including ALS, cancers, and Alzheimer's Disease (AD). Amorfix utilizes its computational discovery platform, ProMIS(TM), 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 blood screening test for liver cancer. 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.

%SEDAR: 00022789E

SOURCE Amorfix Life Sciences Ltd.

For further information: 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; James Parsons, Chief Financial Officer, Amorfix Life Sciences Ltd., Tel: (416) 847-6929, Fax: (416) 847-6899, james.parsons@amorfix.com

Organization Profile

Amorfix Life Sciences Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890