Amorfix announces fiscal 2009 first quarter results



    TSX: AMF

    TORONTO, Aug. 7 /CNW/ - Amorfix Life Sciences, a company focused on
treatments and diagnostics for brain wasting diseases, today announced its
operational and financial results for the three months ended June 30, 2008.

    
    Q1-2009 Development and Corporate Highlights

    -   Amorfix has entered the UK National Institute for Biological
        Standards and Control (NIBSC) process to verify the performance of an
        acceptable blood test for vCJD. 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 and is waiting for
        confirmation to progress to test a large number of normal human
        plasma samples to demonstrate the specificity of Amorfix's
        EP-vCJD(TM) Blood Screening Assay.

    -   Amorfix attended the EU Commission's In Vitro Diagnostic Technical
        Group meeting in Brussels, Belgium on June 12, 2008 as a
        representative of the European Diagnostic Manufacturer's Association
        (EDMA). The meeting was attended by representatives of many of the EU
        member country Competent Authorities to address regulatory issues
        including establishing a Common Technical Specification (CTS) for an
        in vitro diagnostic test for vCJD.

    -   Using our EP-TSE(TM) sheep scrapie assay and testing a third-party
        supplied blinded panel, endogenous scrapie prions were detected in
        blood plasma from asymptomatic sheep as young as 17 months of age.
        Scrapie, a disease in sheep similar to mad cow disease, is infectious
        and has resisted years of attempts to eradicate the disease amongst
        the 1 billion sheep in the world. Detection of infected sheep 2 to 3
        years prior to symptoms will allow effective removal of infected
        animals before they have the ability to infect other sheep in the
        flock. A simple blood test could be used for surveillance as well as
        eradication and would lead to the identification of infected animals
        earlier.

    -   Amorfix's Alzheimer's disease diagnostic test has achieved its target
        sensitivity and the company is now testing patient samples of blood
        plasma and cerebral spinal fluid. The test is designed to detect
        aggregated Abeta proteins, the characteristic feature of Alzheimer's
        disease.

    -   The ALS therapeutics program in collaboration with Biogen Idec
        (NASDAQ:   BIIB) is progressing on schedule with completion of antibody
        infusion studies expected in September with data and final analysis
        of results expected in the fourth quarter of 2008.

    -   Subsequent to the quarter end, announced the receipt of a Canadian
        Institutes of Health Research (CIHR) grant of $227,500 to support
        preclinical studies to evaluate Amorfix's Disease Specific Epitope
        (DSE) antibodies and vaccines for the treatment of Alzheimer's
        Disease.

    -   Amorfix presented at the Rodman & Renshaw 5th Annual Global
        Healthcare Conference in Monte Carlo, Monaco an important conference
        to connect to life science investors from Europe and North America.
    

    "Amorfix continues to make progress in the validation and regulatory
process for the vCJD assay. We are fully engaged with the UK and EU
authorities and have confidence we will continue to move ahead in both
processes." said George Adams, President & Chief Executive Officer of Amorfix.
"With our Alzheimer's disease assay achieving its target sensitivity, we are
beginning to test patient samples to look for aggregated A-beta protein as a
positive indicator of disease."

    Financial Results

    For the three months ended June 30, 2008 the Company reported a net loss
from operations of $1,606,184 ($0.04 per share) compared to net loss of
$1,784,856 ($0.04 per share) for the three months ended June 30, 2007.
    Research and development (R&D) expenses for the three months ended
June 30, 2008 were $1,367,167 compared with $1,532,424 for the three months
ended June 30, 2007. The decrease was due mainly to lower vCJD program
external commercialization expenses compared to the three months ended
June 30, 2007, partially offset by salary costs for personnel hired during
fiscal 2008 to develop the sheep scrapie assay, to support commercialization
of the EP-vCJDTM test, and to carry out the ALS research program in
conjunction with Biogen.
    General and administrative expenses for the three months ended June 30,
2008 were $263,624 compared with $361,751 for the corresponding period in
2007. The decrease was due mainly to lower stock-based compensation expense.
    At June 30, 2008, the Company had working capital of $6,690,481 and
41,678,380 common shares outstanding.

    
    Outlook

    The Company's fiscal 2009 diagnostic priorities are to:

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

    -   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

    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.

    Financial results included below :

    
    Amorfix Life Sciences Ltd.
    (a development stage company)
    Balance Sheets

                                                       June 30,     March 31,
                                                          2008          2008
                                                             $             $
                                                    (unaudited)

    Assets

    Current assets
    Cash and cash equivalents                          594,168     2,212,776
    Marketable securities                            6,308,088     6,467,490
    Amounts receivable                                 209,176       198,026
    Tax credits receivable                             475,082       400,082
    Prepaid expenses and deposits                       81,295       136,855
                                                   --------------------------

    Total current assets                             7,667,809     9,415,229

    Property and equipment, net                        612,745       575,053
                                                   --------------------------

                                                     8,280,554     9,990,282
                                                   --------------------------
                                                   --------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities           977,328     1,295,333
                                                   --------------------------

    Total current liabilities                          977,328     1,295,333
                                                   --------------------------

    Shareholders' Equity

    Common shares                                   19,194,840    19,194,840
    Warrants and options                             3,012,075     2,815,838
    Contributed surplus                                212,627       187,777
    Accumulated other comprehensive income (loss)       (4,379)        2,247
    Deficit                                        (15,111,937)  (13,505,753)
                                                   --------------------------

                                                     7,303,226     8,694,949
                                                   --------------------------

                                                     8,280,554     9,990,282
                                                   --------------------------
                                                   --------------------------


    Amorfix Life Sciences Ltd.
    (a development stage company)
    Statements of Operations and Comprehensive Loss
    (Unaudited)

                                                                 Period from
                                                                  January 23,
                                    Three months  Three months          2004
                                           ended         ended    (inception)
                                         June 30,      June 30,   To June 30,
                                            2008          2007          2008
                                               $             $             $

    Revenue
    Interest earned                       75,853       135,117       843,676
                                     ----------------------------------------

    Expenses
    Research and development           1,367,167     1,532,424    12,182,143
    General and administrative           263,624       361,751     3,004,118
    Amortization of property and
     equipment                            51,246        18,079       233,346
    Amortization of technology rights          -         7,719        56,313
                                     ----------------------------------------

                                       1,682,037     1,919,973    15,475,920
                                     ----------------------------------------

    Loss before the undernoted        (1,606,184)   (1,784,856)  (14,632,244)

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

    Loss for the period               (1,606,184)   (1,784,856)  (15,111,937)
                                     ----------------------------------------
                                     ----------------------------------------

    Other comprehensive income (loss)
    Unrealized loss on available-for-
     sale marketable securities           (6,626)      (33,657)
                                     --------------------------
    Comprehensive loss for the
     period                           (1,612,810)   (1,818,513)
                                     --------------------------
                                     --------------------------

    Basic and diluted loss per
     common share                          (0.04)        (0.04)
                                     --------------------------
                                     --------------------------

    Weighted average number of
     common shares outstanding        41,678,380    40,881,750
                                     --------------------------
                                     --------------------------




    Amorfix Life Sciences Ltd.
    (a development stage company)
    Statements of Cash Flows
    (Unaudited)
                                                                 Period from
                                                                  January 23,
                                    Three months  Three months          2004
                                           ended         ended    (inception)
                                         June 30,      June 30,   To June 30,
                                            2008          2007          2008
                                               $             $             $
    Cash provided by (used in)

    Operating activities
    Loss for the period               (1,606,184)   (1,784,856)  (15,111,937)
    Amortization of property and
     equipment                            51,246        18,079       233,346
    Amortization of technology rights          -         7,719        56,313
    Stock-based compensation             221,087       307,983     2,149,625
    Other non-cash expenses                    -             -       235,115
    Changes in non-cash working
     capital                            (348,595)      (41,555)      121,313
                                     ----------------------------------------

                                      (1,682,446)   (1,492,630)  (12,316,225)
                                     ----------------------------------------

    Investing activities
    Purchase of marketable
     securities                       (1,714,463)            -   (23,388,373)
    Sale of marketable securities      1,867,239       695,658    17,075,906
    Purchase of property and
     equipment                           (88,938)     (110,515)     (846,091)
    Purchase of technology rights              -             -       (56,313)
                                     ----------------------------------------

                                          63,838       585,143    (7,214,871)
                                     ----------------------------------------

    Financing activities
    Issuance of common shares, net
     of cash issue costs                       -             -     4,383,129
    Issuance of common share units,
     net of cash issue costs                   -             -    11,973,069
    Issuance of common shares on
     exercise of agent options
     and warrants                              -       333,513     2,980,920
    Issuance of common shares on
     exercise of options                       -        18,000       521,368
    Other financing activities                 -             -       266,778
                                     ----------------------------------------

                                               -       351,513    20,125,264
                                     ----------------------------------------

    Net (decrease) increase in cash
     and cash equivalents
     during the period                (1,618,608)     (555,974)      594,168

    Cash and cash equivalents -
     Beginning of period               2,212,776     1,660,594             -
                                     ----------------------------------------

    Cash and cash equivalents -
     End of period                       594,168     1,104,620       594,168
                                     ----------------------------------------
                                     ----------------------------------------
    

    %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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