During the fourth quarter of 2012, Allon announced that its pivotal clinical trial evaluating its lead product candidate davunetide as a treatment for progressive supranuclear palsy (PSP) failed to demonstrate efficacy in this population. Since that time the Company has been pursuing strategic options for the business to exploit the economic potential of its assets. The Company expects to conclude this process during the second quarter of 2013.
Results of operations
Allon reported a net loss of $1,071,311 ($0.01 per share) for the three months ended March 31, 2013, compared to a net loss of $2,778,704 ($0.03 per share) for the three months ended March 31, 2012, representing a decrease in net loss of $1,707,393. R&D expenses for the three months ended March 31, 2013 were $578,790, consisting primarily of closing costs related to the PSP clinical trial. At March 31, 2013, the Company had cash and cash equivalents of $589,484.
Allon Therapeutics Inc. is a clinical-stage biotechnology company focused on bringing to market innovative central nervous system therapies. The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC".
Forward Looking Statements
Statements contained herein, other than those which are strictly statements of historical fact may include forward-looking information. Such statements will typically contain words such as "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends", "expects", and similar expressions. While forward-looking statements represent management's outlook based on assumptions that management believes are reasonable, forward-looking statements by their nature are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by them. Such factors include, among others, the inherent uncertainty involved in scientific research and drug development, Allon's early stage of development, lack of product revenues, its additional capital requirements, the risks associated with successful completion of clinical trials and the long lead-times and high costs associated with obtaining regulatory approval to market any product which Allon may eventually develop. Other risk factors include the limited protections afforded by intellectual property rights, rapid technology and product obsolescence in a highly competitive environment and Allon's dependence on collaborative partners and contract research organizations. These factors can be reviewed in Allon's public filings at www.sedar.com and should be considered carefully. Readers are cautioned not to place undue reliance on such forward-looking statements. Similarly, nothing in this press release is meant to promote a pharmaceutical product or make a regulated claim of efficacy.
SOURCE: Allon Therapeutics Inc.
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