Liponex Inc. Announces Results for Year Ended December 31, 2006



    OTTAWA, March 20 /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 year ended December 31, 2006.
    "While 2006 was a busy and exciting year for Liponex, we have since
encountered challenges with respect to the development of our lead compound,
CRD5," said Bill Dickie, President and CEO. "As a result, our next step in the
development strategy of this compound is to assess the data, a process we
believe will culminate in a reformulation and a second Phase I/II trial that
will enable us to determine a final formulation and patient-friendly dosing
regimen to support a U.S. FDA submission for a subsequent U.S. trial. As such,
we remain committed to demonstrating that CRD5 is not only safe but effective
in raising HDL levels resulting in a commercially viable drug for the
treatment of heart disease. We will continue to manage our expenses allowing
us to maintain enough funds to carry us through to the second half of 2008."

    2006 Highlights

    Results for the Year Ended December 31, 2006

    All amounts are in Canadian dollars unless otherwise noted.

    As at December 31, 2006, the Company had cash and short-term investments
of approximately $6.0 million and working capital of approximately
$6.1 million available to fund operations compared with cash of approximately
$9.5 million and working capital of approximately $9.4 million at December 31,
2005.
    Liponex is a pre-revenue development stage company and incurred a net
loss of approximately $3.3 million for the year, or (0.15) per share, compared
with a net loss of approximately $2.4 million, or (0.17) per share for 2005.
The increase in net loss was principally caused by Phase I/II clinical trial
expenditures and other research and development expenditures due to increased
activity since the IPO, completed late in 2005.
    General and administrative expenses were $1,220,681 for the year ended
December 31, 2006, representing a decrease from $1,542,028 in 2005. In 2005,
additional general and administrative costs were incurred resulting from the
completion of the IPO and the transition from private to public company
status. The Company expects that general and administrative expenses will
remain comparable to the expense level observed to date in 2006.
    Research and development expenses for 2006 were $2,320,984, net of
$225,167 of investment tax credits, compared with $960,633, net of $148,000 of
investment tax credits, in 2005. The increase in gross research and
development expenses was largely attributable to the commencement of our CRD5
Phase I/II clinical trial in August 2006 and additional personnel and lab
expenses to support expanded research and development. The Phase I/II trial
continued through the end of 2006 and into the first quarter of 2007, however,
the majority of costs related to the trial were incurred in 2006. We expect
gross research and development gross costs to remain relatively constant in
2007 as we continue testing at similar levels of operation and commence a
follow-on CRD5 Phase I/II trial.
    Interest income for the year ended December 31, 2006 was $267,450
compared with $99,156 in 2005. The majority of interest income relates to
short-term investments held during the respective periods.

    Excerpts from the year-end 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 completed its IPO in 2005 and 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 "belief" in respect of reformulation and the undertaking of a
second Phase I/II trial 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 of "belief", 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 Sheets
    As at December 31
    -------------------------------------------------------------------------

                                                          2006          2005
                                                             $             $
    Assets

    Current assets
    Cash                                               914,655       412,718
    Short-term investments                           5,043,616     9,090,308
    Investment tax credits recoverable                 427,022       220,355
    Prepaids and other receivables                     177,873       132,625
                                                   --------------------------

                                                     6,563,166     9,856,006
    Restricted cash                                     32,000             -
    Capital assets                                     213,387       117,418
                                                   --------------------------

                                                     6,808,553     9,973,424
                                                   --------------------------
                                                   --------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities           319,106       238,344
    Accrued compensation                               122,505       132,648
    Other obligation                                    40,000       124,958
                                                   --------------------------

                                                       481,611       495,950
                                                   --------------------------
    Commitments

    Shareholders' Equity
    Capital stock                                   14,341,143    14,331,340
    Contributed surplus                                426,043       312,163
    Accumulated deficit                             (8,440,244)   (5,166,029)
                                                   --------------------------

                                                     6,326,942     9,477,474
                                                   --------------------------

                                                     6,808,553     9,973,424
                                                   --------------------------
                                                   --------------------------



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

                                                                  Cumulative
                                                               From August 8,
                                                                     2000 to
                                      Years ended December 31,   December 31,
                                     --------------------------
                                            2006          2005          2006
                                               $             $             $

    Revenue                                    -             -             -

    Operating Expenses
    General and administrative         1,220,681     1,542,028     4,140,127
    Research and development           2,320,984       960,633     4,700,555
                                     ----------------------------------------

    Loss from operations              (3,541,665)   (2,502,661)   (8,840,682)

    Investment income                    267,450        99,156       400,438
                                     ----------------------------------------

    Net loss for the period           (3,274,215)   (2,403,505)   (8,440,244)
                                     ----------------------------------------
                                     ----------------------------------------



    Weighted average shares
     outstanding - basic and diluted  21,581,152    13,752,244
                                     --------------------------
                                     --------------------------

    Loss per share - basic and
     diluted                               (0.15)        (0.17)
                                     --------------------------
                                     --------------------------



    Liponex Inc.
    (a development stage company)
    Statements of Cash Flow
    For the Year Ended December 31, 2006
    -------------------------------------------------------------------------

                                                                  Cumulative
                                                               from August 8,
                                                                     2000 to
                                       Years ended December 31,  December 31,
                                     --------------------------
                                            2006          2005          2006
                                               $             $             $

    Cash flows from (used in)

    Operating activities
    Net loss for the period           (3,274,215)   (2,403,505)   (8,440,244)
    Items not affecting cash -
      Depreciation                        82,100        60,000       292,891
      Share-based compensation           116,963        46,355       404,821
      Interest accrued on short-term
       investments                      (261,828)      (93,388)     (376,157)
      Interest accrued on long-term
       obligations                         5,042         4,741         9,784
      Financing fee settled through
       the issuance of common shares           -        66,294        66,325
      Options issued to non-employees          -             -        10,305
      Financing fee settled through
       long-term obligation                    -       220,217       220,217
    Changes in non-cash working
     capital items                      (181,296)      127,255       (13,284)
                                     ----------------------------------------

                                      (3,513,234)   (1,972,031)   (7,825,342)
                                     ----------------------------------------

    Investing activities
    Purchase of capital assets          (178,069)      (95,131)     (506,278)
    Restricted cash                      (32,000)            -       (32,000)
    Purchase of short-term
     investments                      (6,000,000)  (10,000,000)  (16,620,000)
    Sale of short-term investments    10,308,520     1,003,080    11,952,540
                                     ----------------------------------------

                                       4,098,451    (9,092,051)   (5,205,738)
                                     ----------------------------------------

    Financing activities
    Proceeds on issuance of capital
     stock                                 6,720    12,985,040    15,896,631
    Share issuance costs                       -    (1,517,233)   (1,633,477)
    Long-term debt proceeds                    -             -        58,271
    Long-term debt repayments                  -       (12,885)      (58,271)
    Issuance of convertible
     promissory note                           -             -        22,581
    Payments to Ottawa
     Inno-centre Corporation                   -      (130,800)     (150,000)
    Long-term obligation repayments      (90,000)     (100,000)     (190,000)
                                     ----------------------------------------

                                         (83,280)   11,224,122    13,945,735
                                     ----------------------------------------

    Net change in cash for the period    501,937       160,040       914,655

    Cash - Beginning of period           412,718       252,678             -
                                     ----------------------------------------

    Cash - End of period                 914,655       412,718       914,655
                                     ----------------------------------------
                                     ----------------------------------------

    Supplemental cash flow information
    Conversion of accounts payable
     due to Inno-Centre                        -             -       150,000
    Settlement of promissory note
     with units of equity                      -             -       (22,581)
    

    %SEDAR: 00022196E




For further information:

For further information: Investor Relations, Joanna Longo, The Equicom
Group Inc., (416) 815-0700 ext. 233, jlongo@equicomgroup.com

Organization Profile

LIPONEX INC.

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