Liponex Inc. Announces 2007 Third Quarter Results



    OTTAWA, Oct. 30 /CNW/ - Liponex Inc. (TSX:LPX), a biopharmaceutical
company specializing in developing advanced products related to High Density
Lipoprotein (HDL), often called "good cholesterol," today announced its
results for the third quarter ended September 30, 2007.
    "We have continued the development of our lead product CRD5 for the
treatment of dyslipidemia and heart disease, focusing on establishing a new
animal model and concurrently using this model to test the efficacy of our new
formulation. Our novel enteric coated granule formulation of CRD5 is currently
undergoing evaluation in Yucatan miniature pigs and we expect to release
information from this evaluation early in the first quarter of 2008," said
Bill Dickie, President and CEO of Liponex. "We expect that our cash and
short-term investments should sustain operations through at least the third
quarter of 2008. We are continuing to advance the CRD5 program in the short
term with available resources but we are looking to secure a partnership,
co-development agreement, or financing arrangement for its longer term
development. In parallel, we are seeking out strategic options to leverage the
company's assets and resources."

    Results for the Quarter Ended September 30, 2007

    All amounts are in Canadian dollars unless otherwise noted.
    As at September 30, 2007, the Company had cash and short-term investments
of approximately $3.62 million and working capital of approximately
$3.71 million available to fund operations compared with cash of $6.0 million
and working capital of $6.1 million at December 31, 2006. We expect that our
cash and short-term investments will be sufficient to sustain operations
through at least the third quarter of 2008.
    The net loss for the quarter was $878,028 or ($0.04) per share, compared
with a net loss of $975,158, or ($0.05) per share, for the same period in
2006. The decrease in the net loss was primarily attributable to expenditures
incurred in third quarter of 2006 related to the Phase I/II clinical trial
which was completed in the first quarter of 2007. We believe that the general
level of operating expenses and net loss observed for the first nine months of
2007 will continue for the remainder of 2007.
    General and administrative expenses decreased to $284,672 for the three
months ended September 30, 2007 from $301,486 for the same period in 2006. We
expect that general and administrative expenses will remain relatively
constant for the remainder of 2007.
    Research and development expenses for the three months ended
September 30, 2007 were $640,602, net of $51,000 in investment tax credits,
compared with $744,759, net of $64,767 in investment tax credits, in the third
quarter of the previous year. The decrease in the gross research and
development expenses was primarily attributable to expenditures incurred in
the third quarter of 2006 related to the Phase I/II clinical trial which was
completed in the first quarter of 2007. Gross research and development costs
and activity are expected to remain relatively constant for the remainder of
2007 as CRD5 research and development continues.
    Interest and other income for the nine months ended September 30, 2007
was $152,895 compared with $207,418 for the same period in 2006.

    Excerpts from the financial statements are attached.

    About Liponex

    Liponex is a biopharmaceutical company specializing in developing
products related to High Density Lipoprotein (HDL), often called "good
cholesterol." Its drug candidates relate to the various roles of HDL as a
transport vehicle, including removing excess cholesterol from the body,
delivering molecules to cells and removing unwanted materials from the body.
Liponex is listed on the TSX under the ticker "LPX". For more information on
Liponex, visit www.liponex.ca.

    Certain of the statements contained in this press release contain
forward-looking statements, which involve known and unknown risks,
uncertainties and a number of other important factors which may cause the
actual results, performance or achievements of the Company, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Statements of "expectation" or "belief" in respect of the undertaking of
future human trials for CRD5 as well as CRD5's efficacy in raising HDL levels,
are based primarily upon results derived to date from the Company's
pre-clinical research and development and its results from completed Phase I
and Phase I/II clinical trials. While the Company believes that it has
reasonable scientific basis upon which to make such statements, it is not
possible to predict whether a new therapeutic agent will be prove to be safe
and/or effective in humans. The Company cannot guarantee that it actually will
achieve the plans, intentions or expectations and undue reliance should not be
placed on those forward-looking statements. The Company does not expect to
update forward-looking statements continually as conditions change. Investors
are referred to the full discussion of risk factors associated with the
Company's business contained in the Company's periodic regulatory filings,
which can be found in the SEDAR database at www.sedar.com.

    
    Liponex Inc.
    (a development stage company)
    Balance Sheet
    -------------------------------------------------------------------------

                                                  September 30,  December 31,
                                                          2007          2006
                                                             $             $
                                                    (unaudited)
    Assets

    Current assets
    Cash                                               633,378       914,655
    Short-term investments                           2,984,418     5,043,616
    Investment tax credits recoverable                 414,207       427,022
    Prepaid expenses and receivables                   145,646       177,873
                                                  ---------------------------

                                                     4,177,649     6,563,166
    Restricted cash                                     32,000        32,000
    Capital assets                                     209,551       213,387
                                                  ---------------------------

                                                     4,419,200     6,808,553
                                                  ---------------------------
                                                  ---------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities           346,602       319,106
    Accrued compensation                               125,107       122,505
    Other obligation                                         -        40,000
                                                  ---------------------------

                                                       471,709       481,611
                                                  ---------------------------

    Shareholders' Equity
    Capital stock                                   14,521,216    14,341,143
    Contributed surplus                                525,316       426,043
    Accumulated deficit                            (11,099,041)   (8,440,244)
                                                  ---------------------------

                                                     3,947,491     6,326,942
                                                  ---------------------------

                                                     4,419,200     6,808,553
                                                  ---------------------------
                                                  ---------------------------



    Liponex Inc.
    (a development stage company)
    Statements of Operations and Accumulated Deficit
    -------------------------------------------------------------------------

                           Three months ended          Nine months ended
                      September 30, September 30, September 30, September 30,
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    Revenue           $          -  $          -  $          -  $          -

    Operating expenses
      General and
       administrative      284,672       301,486       951,064       913,274
      Research and
       development         640,602       744,759     1,860,628     1,688,149
                      -------------------------------------------------------

    Loss from
     operations           (925,274)   (1,046,245)   (2,811,692)   (2,601,423)

    Investment income       47,246        71,087       152,895       207,418
                      -------------------------------------------------------

    Net loss for the
     period               (878,028)     (975,158)   (2,658,797)   (2,394,005)

    Accumulated deficit,
     beginning
     of the period     (10,221,013)   (6,584,876)   (8,440,244)   (5,166,029)
                      -------------------------------------------------------

    Accumulated deficit,
     end of the
     period           $(11,099,041) $ (7,560,034) $(11,099,041) $ (7,560,034)
                      -------------------------------------------------------
                      -------------------------------------------------------

    Weighted average
     number of common
     shares
     outstanding        21,758,357    21,580,867    21,731,015    21,580,867
                      -------------------------------------------------------
                      -------------------------------------------------------

    Basic and diluted
     loss per common
     share            $      (0.04) $      (0.05) $      (0.12) $      (0.11)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Liponex Inc.
    (a development stage company)
    Statements of Cash Flows
    -------------------------------------------------------------------------

                           Three months ended          Nine months ended
                      September 30, September 30, September 30, September 30,
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    Cash flows from
     (used in)

    Operating activities
      Net loss for
       the period     $   (878,028) $   (975,158) $ (2,658,797) $ (2,394,005)
      Items not
       involving cash -
        Depreciation and
         amortization       27,631        22,985        81,028        60,923
        Share-based
         compensation       30,880        31,845       118,119        80,563
        Interest accrued
         on short-term
         investments       (35,082)      (66,014)     (124,287)     (209,506)
        Interest accrued
         on long-term
         obligation              -           980             -         4,647
      Change in operating
       components of
       working capital     142,985        87,630        75,140       (11,534)
                      -------------------------------------------------------

                          (711,614)     (897,732)   (2,508,797)   (2,468,912)
                      -------------------------------------------------------

    Investing activities
      Purchase of capital
       assets                    -       (39,344)      (77,191)      (90,246)
      Purchase of
       restricted cash
       investment                        (32,000)                    (32,000)
      Purchase of
       short-term
       investments      (3,000,000)   (6,000,000)   (3,000,000)   (6,000,000)
      Sale of short-term
       investments       4,158,281     7,258,877     5,183,486     9,300,910
                      -------------------------------------------------------
                         1,158,281     1,187,533     2,106,295     3,178,664
                      -------------------------------------------------------

    Financing activities
      Proceeds on exercise
       of stock options
       and warrants              -             -       161,226             -
      Repayments of other
       obligation                -       (30,000)      (40,000)      (90,000)
                      -------------------------------------------------------
                                 -       (30,000)      121,226       (90,000)
                      -------------------------------------------------------

    Change in cash
     for the period        446,667       259,801      (281,276)      619,752

    Cash - beginning
     of the period         186,712       772,669       914,655       412,718
                      -------------------------------------------------------

    Cash - end of
     the period       $    633,379  $  1,032,470  $    633,379  $  1,032,470
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00022196E




For further information:

For further information: Investor Relations, Michael Moore, The Equicom
Group Inc., (416) 815-0700 ext. 241, mmoore@equicomgroup.com

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LIPONEX INC.

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