ConjuChem Biotechnologies Announces Fiscal 2007 Year-End Financial Results



    MONTREAL, Jan. 29 /CNW/ - ConjuChem Biotechnologies Inc. (TSX: CJB) today
announced financial results for its fiscal year, ended October 31, 2007.
    "During 2007, we continued to focus on advancing our lead product,
PC-DAC(TM):Exendin-4 for the treatment of Type 2 diabetes. Highlighting the
year, we reported data from our one-month multi-dose Phase I/II clinical trial
that were positive, statistically significant and highly encouraging," said
Mark Perrin, President and CEO of ConjuChem. "We now look forward to
progressing to our Phase II program, which is scheduled to commence in the
first quarter and will evaluate our product in an even larger patient
population and over a longer duration. We are confidently optimistic, based on
the results of our previous studies, that this trial will further validate the
enormous potential of PC-DAC(TM):Exendin-4."
    The Company's net loss for the quarter ended October 31, 2007 amounted to
$6.5 million, or ($0.03) per share, compared to $15.9 million, or ($0.29) per
share, for the quarter ended October 31, 2006. The net loss for the year ended
October 31, 2007 amounted to $45.9 million or ($0.20) per share, compared to
$46.2 million, or ($0.90) per share, for the year ended October 31, 2006. The
decrease in the net loss is mainly attributable to an increase in interest
income of $3.2 million compensated by an increase of $2.8 million in net
Research and Development expenses.
    The Company recorded interest income on cash, short and long-term
investments that amounted to $876,394 for the quarter ended October 31, 2007
compared to $137,574 for the same period last year. Interest income for the
year ended October 31, 2007 was $3.7 million versus $447,400 for fiscal 2006.
The increase in interest revenue was a result of the magnitude of the
investment portfolio available resulting from the closing of the November 28,
2006 financing initiative.
    Net research and development expenses amounted to $3.4 million for the
quarter ended October 31, 2007 compared to $11.5 million for the quarter ended
October 31, 2006. Net research and development expenses amounted to
$33.7 million for the year ended October 31, 2007 compared to $30.9 million
for fiscal 2006. The decrease over the three-month period is largely
attributable to the completion of the Phase I/II clinical trials for
PC-DAC(TM):Exendin-4, in March 2007. The increase over the year is largely
attributable to the purchase of drug substance for the upcoming clinical
trials for PC-DAC(TM):Exendin-4 and related toxicity and carcinogenicity
studies.
    General and administrative costs amounted to $1.1 million for the quarter
ended October 31, 2007 compared to $1.5 for the quarter ended October 31,
2006. For the year ended October 31, 2007 general and administrative costs
amounted to $4.8 million, consistent with the $4.8 million incurred for the
same period the previous year.
    At October 31, 2007, the Company had cash and cash equivalents and
available-for-sale short-term investments totalling $25.9 million compared to
$11.3 million as at October 31, 2006. As at October 31, 2007, working capital
amounted to $18.9 million.
    Subsequent to year-end, the Company repaid the convertible senior
unsecured notes amounting to $45,000,000 plus accrued interest of $13,006,914
for a total amount of $58,006,914 and closed a public offering of
22,000 convertible unsecured subordinated debenture units of the Company at a
price of $1,000 per Unit. Each Unit consists of $1,000 principal amount of
convertible unsecured subordinated debentures and 1,562.5 common share
purchase warrants. The offering was completed resulting in the issuance of a
total of 22,000 units for gross proceeds of $22,000,000 and net proceeds of
approximately $20,000,000.

    Notice of AGM

    ConjuChem will hold its Annual General Meeting of Shareholders at 4:15 on
Tuesday, March 18, 2008 at the Loews Vogue Hotel, 1425, de la Montagne Street,
Montreal, Quebec, H3G 1Z3

    About ConjuChem Biotechnologies

    ConjuChem Biotechnologies, developer of next generation medicines from
therapeutic peptides, is creating long-acting compounds based on
bioconjugation platform technologies. When applied to peptides, the Company's
systemic DAC(TM) and PC-DAC(TM) Technologies enable the creation of new drugs
with significantly enhanced therapeutic properties as compared to the original
peptide. Detailed descriptions of the Company can be viewed on the Company's
website www.conjuchem.com.

    Forward-Looking Statements

    Some of the statements made herein may constitute forward-looking
statements. These statements relate to future events or our future financial
performance and involve known and unknown risks, uncertainties and other
factors that may cause ConjuChem Biotechnologies' actual results, performance
or achievements to be materially different from those expressed or implied by
any of the Company's statements. Actual events or results may differ
materially. We disclaim any intention, and assume no obligation, to update
these forward-looking statements unless requested to do so by securities
regulators.

    
    ConjuChem Biotechnologies Inc.

                               BALANCE SHEETS

    As at October 31
                                                         2007           2006
                                                            $              $
                                                 ----------------------------

    ASSETS
    Current
    Cash and cash equivalents                       1,235,704      4,034,937
    Available-for-sale short-term investments      24,643,706      7,244,401
    Accounts receivable and other assets              257,116        394,758
    Investment tax credits receivable               1,169,000        550,000
    Prepaid expenses                                  208,945        288,746
                                                 ----------------------------
    Total current assets                           27,514,471     12,512,842
    Held-to-maturity long-term investments         59,736,098              -
    Deferred financing fees                                 -         74,675
    Property, plant and equipment                   1,049,147      1,161,886
    Intangible assets                                  19,257         33,068
                                                 ----------------------------
                                                   88,318,973     13,782,471
                                                 ----------------------------
                                                 ----------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
    Current liabilities
    Accounts payable and accrued liabilities        8,576,258     12,862,582
    Unearned revenues                                  35,314              -
                                                 ----------------------------
    Total current liabilities                       8,611,572     12,862,582
    Convertible senior unsecured notes             52,502,487     45,276,400
                                                 ----------------------------
                                                   61,114,059     58,138,982
                                                 ----------------------------

    Shareholders' equity (deficiency)
    Capital stock                                 265,332,302    162,017,141
    Warrants                                       11,885,875      3,276,000
    Equity portion of convertible senior
     unsecured notes                               14,966,780     14,966,780
    Contributed surplus                            28,008,989     22,466,527
    Deficit                                      (292,973,699)  (247,082,959)
    Accumulated other comprehensive loss              (15,333)             -
                                                 ----------------------------
    Total shareholders' equity (deficiency)        27,204,914    (44,356,511)
                                                 ----------------------------
                                                   88,318,973     13,782,471
                                                 ----------------------------
                                                 ----------------------------


    ConjuChem Biotechnologies Inc.

                            STATEMENTS OF DEFICIT

    Years ended October 31
                                                         2007           2006
                                                            $              $
                                                 ----------------------------

    Deficit, beginning of year                   (247,082,959)  (200,918,066)
    Net loss for the year                         (45,890,740)   (46,164,893)
                                                 ----------------------------
    Deficit, end of year                         (292,973,699)  (247,082,959)
                                                 ----------------------------
                                                 ----------------------------


    ConjuChem Biotechnologies Inc.

                         STATEMENTS OF OPERATIONS AND
                             COMPREHENSIVE LOSS

    Years ended October 31
                                                         2007           2006
                                                            $              $
                                                 ----------------------------

    REVENUES
    Contract revenues                                  69,430        239,123
    Interest income                                 3,693,388        477,400
                                                 ----------------------------
                                                    3,762,818        716,523
                                                 ----------------------------

    EXPENSES
    Research and development                       35,034,021     30,279,595
    Investment tax credits                         (1,352,940)       582,752
                                                 ----------------------------
    Net research and development expenses          33,681,081     30,862,347
    General and administrative expenses             4,754,366      4,754,121
    Amortization of property, plant and equipment     255,128        293,467
    Amortization of intangible assets                  17,442         33,068
    Amortization of deferred financing fees            34,888         34,888
    Non-cash stock-based compensation               3,872,365      4,806,417
    Financial charges                                  15,976         50,188
    Foreign exchange gain                            (243,562)       (45,660)
    Accretion in carrying value of convertible
     senior unsecured notes                         7,265,874      6,092,580
                                                 ----------------------------
                                                   49,653,558     46,881,416
                                                 ----------------------------
    Net loss                                      (45,890,740)   (46,164,893)

    Other comprehensive income
    Unrealized loss on available-for-sale
     short-term investments                           (15,333)             -
                                                 ----------------------------
    Comprehensive loss                            (45,906,073)   (46,164,893)
                                                 ----------------------------
                                                 ----------------------------

    Basic and diluted loss per share                    (0.20)         (0.90)
                                                 ----------------------------
                                                 ----------------------------

    Weighted average number of common shares
     outstanding during the year                  226,019,318     51,034,067
                                                 ----------------------------
                                                 ----------------------------


    ConjuChem Biotechnologies Inc.

                           STATEMENTS OF CASH FLOWS

    Years ended October 31

                                                         2007           2006
                                                            $              $
                                                 ----------------------------

    OPERATING ACTIVITIES
    Net loss                                      (45,890,740)   (46,164,893)
    Items not affecting cash:
      Amortization of property, plant and
       equipment                                      255,128        293,467
      Amortization of intangible assets                17,442         33,068
      Amortization of deferred financing fees          34,888         34,888
      Amortization of premium on held-to-maturity
       long-term investments                          (91,965)         2,658
      Interest receivable on available-for-sale
       short-term investments                        (131,111)             -
      Non-cash stock-based compensation             3,872,365      4,806,417
      Accretion in carrying value of convertible
       senior unsecured notes                       7,265,874      6,092,580
                                                 ----------------------------
                                                  (34,668,119)   (34,901,815)
    Net changes in non-cash working capital
     balances relating to operations               (4,652,567)     8,371,788
                                                 ----------------------------
    Cash flows relating to operating activities   (39,320,686)   (26,530,027)
                                                 ----------------------------

    INVESTING ACTIVITIES
    Acquisition of available-for-sale short-term
     investments                                  (76,554,076)   (19,137,206)
    Proceeds on maturities of available-for-sale
     short-term investments                        59,270,549     29,598,879
    Acquisition of long-term investments          (59,644,133)             -
    Acquisition of property, plant and equipment     (142,389)      (128,153)
    Acquisition of intangible assets                   (3,631)             -
                                                 ----------------------------
    Cash flows relating to investing activities   (77,073,680)    10,333,520
                                                 ----------------------------

    FINANCING ACTIVITIES
    Issuance of common shares for cash            120,253,483     15,816,926
    Share issue costs paid in cash                 (6,658,350)    (1,023,639)
    Proceeds from reorganization                            -      6,400,000
    Costs of reorganization                                 -     (1,099,061)
    Draw down from bridge loan                              -      2,000,000
    Repayment of bridge loan                                -     (2,000,000)
                                                 ----------------------------
    Cash flows relating to financing activities   113,595,133     20,094,226
                                                 ----------------------------

    Net increase (decrease) in cash and cash
     equivalents during the year                   (2,799,233)     3,897,719
    Cash and cash equivalents, beginning of year    4,034,937        137,218
                                                 ----------------------------
    Cash and cash equivalents, end of year          1,235,704      4,034,937
                                                 ----------------------------
                                                 ----------------------------

    Supplemental cash flow information:
    Interest paid                                       1,604         33,658
                                                 ----------------------------
                                                 ----------------------------
    





For further information:

For further information: Mark Perrin, President & CEO, ConjuChem
Biotechnologies Inc., (514) 844-5558, ext. 311, perrin@conjuchem.com; James
Smith, Investor Relations, (416) 815-0700, ext. 229, jsmith@equicomgroup.com

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CONJUCHEM BIOTECHNOLOGIES INC.

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