Amorfix announces second quarter fiscal 2008 results



    - For the six months ended September 30, 2007 -

    TSX: AMF

    TORONTO, Nov. 13 /CNW/ - Amorfix Life Sciences (TSX: AMF), a company
focused on treatments and diagnostics for brain-wasting diseases, today
reported its second quarter operating results and provided a review of recent
developments on the progress of its therapeutic program and validation of its
diagnostic technology.

    
    Highlights

    -   Biogen Idec exercised the first US$150,000 milestone investment under
        the August 2006 research and investment agreement on Amorfix's
        achievement of the first of three research milestones for the
        Amyotrophic Lateral Sclerosis (ALS) therapeutic program.

    -   Presented results showing life extension in an animal model of ALS
        using a vaccine at the Annual Meeting of the American Neurological
        Association. This is the second therapeutic approach demonstrated in
        proof-of-concept studies based on the misfolded SOD1 protein.

    -   Successfully completed testing of a blinded panel of sheep blood
        samples for scrapie prions provided by an independent third-party
        laboratory, subsequent to the end of the quarter. Amorfix correctly
        identified 18 out of 20 individual sheep blood samples in the blinded
        panel, scoring 11 out of 12 positive samples and 7 out of 8 negative
        samples. The Company expects that European regulatory agencies will
        consider the data with detection of sheep scrapie blood prions to be
        an important factor in validating a vCJD blood screening test for
        humans.

    -   Participated in the European Commission workshop on the common
        technical specifications (CTS) for variant Creutzfeldt-Jacob Disease
        (vCJD - the human form of "Mad Cow Disease") diagnostic assays in
        Brussels, Belgium on October 26, 2007. Amorfix presented the current
        status of its EP-vCJDTM blood diagnostic assay.
    

    "We continue to make solid progress with both our diagnostic and
therapeutic programs. The successful outcome of the blinded panel for scrapie
prions provides further validation of our diagnostic platform. Moving forward,
we will continue to work towards submitting for a self-declared CE mark for
the EP-vCJD(TM) test, partnering the sheep scrapie test and developing a test
for Alzheimer's disease," said Dr. George Adams, President & Chief Executive
Officer of Amorfix Life Sciences. "In our therapeutic program in which we have
shown that both a vaccine approach and infusion of antibodies have promise in
treating ALS, we have already initiated a larger preclinical program to select
a lead agent from multiple candidates."

    Financial Results

    For the three months ended September 30, 2007 the Company reported a net
loss of $2,007,422 ($0.05 per share) compared to a net loss of $776,474
($0.03 per share) for the three months ended September 30, 2006. For the six
months ended September 30, 2007 the Company reported a net loss of $3,792,278
($0.09 per share) compared to a net loss of $1,540,843 ($0.05 per share) for
the six months ended September 30, 2006.
    Research and development expenses for the three and six months ended
September 30, 2007 were $1,013,692 and $1,922,257 higher, respectively, than
the comparable prior year periods. The increase in research and development
costs related to: higher vCJD program expenses associated with scale up and
commercialization, and development of the sheep scrapie diagnostic assay;
costs of the ALS therapeutic program where the Company demonstrated a
therapeutic effect with both passive and active immunotherapy in pilot studies
using an ALS mouse model; and costs of an expanded AD diagnostic program in
the current fiscal periods.
    General and administrative expenses for the three and six months ended
September 30, 2007 were $258,432 and $440,267 higher, respectively, than the
comparable prior year periods. The increase in general and administrative
expenses resulted mainly from increased legal and stock exchange filing fees
associated with graduating to the TSX exchange, and higher stock-based
compensation and investor relations expenses.
    Cash burn (cash used in operating activities) was $1,484,151 for the
three months ended September 30, 2007 compared to $777,985 for the
corresponding period in 2006. Cash burn was $2,976,781 for the six months
ended September 30, 2007 compared to $1,417,930 for the corresponding period
in 2006. The increase in cash burn was as planned reflecting the
commercialization costs of the vCJD blood screening assay, the advancement of
the Alzheimer's blood test, the completion of pilot ALS animal studies and the
costs to prepare for larger preclinical animal studies using multiple
treatments, and therapeutic research into another brain-wasting disease.
    For the three and six months ended September 30, 2007, Amorfix received
cash proceeds of $189,895 and $541,408, respectively, through the issuance of
common shares on the exercise of warrants and options. During the second
quarter, the Company completed the first research milestone under its
agreement with Biogen Idec. On achievement of this milestone, Biogen Idec
subscribed for 91,445 common shares of Amorfix for gross proceeds of
Cdn. $160,944 (US$150,000).
    As at September 30, 2007 Amorfix had working capital of $11,245,641
compared to $13,835,243 as at March 31, 2007.
    As at September 30, 2007 the Company had 41,433,380 common shares
outstanding.
    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.

    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
    (Unaudited)
    -------------------------------------------------------------------------

                                                   September 30,    March 31,
                                                           2007         2007
                                                              $            $
                                                     (unaudited)    (audited)

    Assets

    Current assets
    Cash and cash equivalents                         3,297,420    1,660,594
    Marketable securities                             8,111,111   12,192,600
    Amounts receivable                                   84,415      229,692
    Tax credits receivable                              300,082      283,527
    Prepaid expenses                                     92,227      132,312
                                                    -------------------------

    Total current assets                             11,886,255   14,498,725

    Property and equipment, net                         305,346      204,732
    Technology rights, net                               25,434       30,873
                                                    -------------------------

                                                     12,217,035   14,734,330
                                                    -------------------------
                                                    -------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities            640,614      663,482
                                                    -------------------------

    Total current liabilities                           640,614      663,482
                                                    -------------------------

    Shareholders' Equity

    Common shares                                    18,975,808   18,028,305
    Warrants and options                              2,761,855    2,404,259
    Contributed surplus                                   6,887        4,056
    Accumulated other comprehensive loss                (60,079)           -
    Deficit                                         (10,108,050)  (6,365,772)
                                                    -------------------------

                                                     11,576,421   14,070,848
                                                    -------------------------

                                                     12,217,035   14,734,330
                                                    -------------------------
                                                    -------------------------



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


                               Three Months Ended         Six Months Ended
                                   September 30              September 30
                                 2007         2006         2007         2006
                                    $            $            $            $
    Revenues
    Interest earned           124,805       56,882      259,922      104,859
    -------------------------------------------------------------------------

    Expenses
    Research and
     development            1,669,098      655,406    3,201,522    1,279,265
    General and
     administrative           423,947      165,515      785,698      345,431
    Amortization of
     property and
     equipment                 26,462       12,084       44,541       20,304
    Amortization of
     technology rights         12,720          351       20,439          702
    -------------------------------------------------------------------------
                            2,132,227      833,356    4,052,200    1,645,702
    -------------------------------------------------------------------------

    Loss before the
     undernoted            (2,007,422)    (776,474)  (3,792,278)  (1,540,843)
    Costs related to
     reverse takeover               -            -            -            -
    -------------------------------------------------------------------------

    Loss for the period    (2,007,422)    (776,474)  (3,792,278)  (1,540,843)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Other Comprehensive
     Income
    Unrealized (gain) loss
     on available-for-sale
     marketable securities    (23,578)           -       83,657            -
    -------------------------------------------------------------------------
    Comprehensive loss for
     the period            (1,983,844)    (776,474)  (3,875,935)  (1,540,843)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss
     per common share           (0.05)       (0.03)       (0.09)       (0.05)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number
     of common shares
     outstanding           41,157,982   30,634,148   41,020,621   30,466,127
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                          Period from
                           January 23,
                                 2004
                           (inception)
                      to September 30,
                                 2007
                                    $
    Revenues
    Interest earned           550,130
    ----------------------------------

    Expenses
    Research and
     development            7,776,390
    General and
     administrative         2,266,995
    Amortization of
     property and
     equipment                104,223
    Amortization of
     technology rights         30,879
    ----------------------------------
                           10,178,487
    ----------------------------------

    Loss before the
     undernoted            (9,628,357)
    Costs related to
     reverse takeover         479,693
    ----------------------------------

    Loss for the period   (10,108,050)
    ----------------------------------
    ----------------------------------

    Other Comprehensive
     Income
    Unrealized (gain)
     loss on available-
     for-sale marketable
     securities                60,079
    ----------------------------------
    Comprehensive loss
     for the period       (10,168,129)
    ----------------------------------
    ----------------------------------

    Basic and diluted
     loss per common
     share
    ----------------------------------
    ----------------------------------

    Weighted average
     number of common
     shares outstanding
    ----------------------------------
    ----------------------------------



    Amorfix Life Sciences Ltd.
    (a development stage company)
    Statements of Cash Flows
    (Unaudited)
    -------------------------------------------------------------------------



                               Three Months Ended         Six Months Ended
                                   September 30              September 30
                                 2007         2006         2007         2006
                                    $            $            $            $
    Cash provided by
     (used in)
    Operating activities
    Loss for the period    (2,007,422)    (776,474)  (3,792,278)  (1,540,843)
      Amortization of
       property and
       equipment               26,462       12,084       44,541       20,304
      Amortization of
       technology rights       12,720          351       20,439          702
      Stock-based
       compensation           297,595       80,459      605,578      252,872
      Non-cash interest
       expense                      -            -            -            -
      Non-cash costs
       related to reverse
       takeover                     -            -            -            -
    Changes in non-cash
     working capital
     (note 5)                 186,494      (94,405)     144,939     (150,965)
    -------------------------------------------------------------------------
                           (1,484,151)    (777,985)  (2,976,781)  (1,417,930)
    -------------------------------------------------------------------------

    Investing activities
    Purchase of marketable
     securities                     -   (3,451,088)           -   (4,438,468)
    Maturity or sale of
     marketable securities  3,375,752      (38,727)   4,071,410    5,138,208
    Purchase of property
     and equipment            (34,640)     (22,905)    (145,155)    (105,961)
    Purchase of technology
     rights                   (15,000)           -      (15,000)      (7,000)
    -------------------------------------------------------------------------
                            3,326,112   (3,512,720)   3,911,255      586,779
    -------------------------------------------------------------------------

    Financing activities
    Issuance of common
     shares, net of cash
     issue costs              160,944      422,213      160,944      422,213
    Issuance of common
     share units, net of
     cash issue costs               -       50,000            -       50,000
    Issuance of common
     shares on exercise
     of warrants              189,895      571,125      523,408    1,126,300
    Issuance of common
     shares on exercise
     of options                     -      179,100       18,000      245,888
    Cash acquired on
     reverse takeover               -            -            -            -
    Issuance of
     promissory note                -            -            -            -
    -------------------------------------------------------------------------
                              350,839    1,222,438      702,352    1,844,401
    -------------------------------------------------------------------------
    Net increase
     (decrease) in cash     2,192,800   (3,068,267)   1,636,826    1,013,250
    Cash - Beginning of
     period                 1,104,620    4,195,311    1,660,594      113,794
    -------------------------------------------------------------------------
    Cash - End of period    3,297,420    1,127,044    3,297,420    1,127,044
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                          Period from
                           January 23,
                                 2004
                           (inception)
                      to September 30,
                                 2007
                                    $
    Cash provided
     by (used in)
    Operating
     activities
    Loss for the period   (10,108,050)
      Amortization of
       property and
       equipment              104,223
      Amortization of
       technology
       rights                  30,879
      Stock-based
       compensation         1,617,133
      Non-cash interest
       expense                  2,673
      Non-cash costs
       related to
       reverse takeover       232,442
    Changes in non-cash
     working capital
     (note 5)                  72,428
    ----------------------------------
                           (8,048,272)

    Investing
     activities
    Purchase of
     marketable
     securities           (20,065,070)
    Maturity or sale of
     marketable securities 11,893,880
    Purchase of property
     and equipment           (409,569)
    Purchase of technology
     rights                   (56,313)
    ----------------------------------
                           (8,637,072)
    ----------------------------------

    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 warrants            2,935,920
    Issuance of common
     shares on exercise
     of options               423,868
    Cash acquired on
     reverse takeover         141,778
    Issuance of
     promissory note          125,000
    ----------------------------------
                           19,982,764
    ----------------------------------
    Net increase
     (decrease) in cash     3,297,420
    Cash - Beginning of
     period                         -
    ----------------------------------
    Cash - End of period    3,297,420
    ----------------------------------
    ----------------------------------
    





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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