Amorfix announces first quarter fiscal 2008 results



    - For the three months ended June 30, 2007 -

    TSX: AMF

    TORONTO, Aug. 14 /CNW/ - Amorfix Life Sciences (TSX: AMF), a company
focused on diagnostics and treatments for brain-wasting diseases, reported
today in its first quarter operating results that the Company continues to
progress in all three of its programs; development of blood tests for variant
Creutzfeldt-Jacob Disease (vCJD) and Alzheimer's disease, and a therapy for
Amyotrophic Lateral Sclerosis (ALS).
    The Company successfully completed the first milestone in its ALS therapy
program with Biogen Idec and is on schedule to select a lead agent in the
first half of 2008, as well as expand its therapeutics program to a second
brain-wasting disease. The completion of ISO 13485:2003 certification, a
critical step toward the commercialization of our EP-vCJD(TM) blood test,
enabled the Company to plan with European blood transfusion services to begin
prevalence testing by the end of the year and routine testing in 2008.
    "The milestones we achieved this quarter provide validation of our
approach to diagnose and treat aggregated misfolded protein diseases and
demonstrate the potential of our novel technologies as we continue to expand
our pipeline into therapeutics," said Dr. George Adams, President & Chief
Executive Officer of Amorfix. "We continue to drive our products forward while
efficiently managing our financial resources. We also continue to look at
opportunities that have the potential to create significant additional value
for our shareholders."

    Other achievements and milestones in the first quarter of fiscal 2008:

    
    -   Presented sensitivity, specificity and reproducibility data for the
        Company's proprietary test for the in vitro detection of vCJD at the
        International Transmissible Spongiform Encephalopathies (TSE)
        Conference held in Berlin, Germany.
    -   Manufactured with OEM vendors the first lot of EP-vCJD(TM) kits and
        began shelf-life testing.
    -   Launched marketing of EP-vCJD(TM) blood test for research purposes
        only.
    -   Completed the first of three development milestones related to its
        ALS program with Biogen Idec (NASDAQ:   BIIB) and, subsequent to
        quarter end Biogen Idec exercised the first US$150,000 milestone
        investment under the August 2006 research and investment agreement.
    -   Published animal data in Nature Medicine on approach to treating ALS.
    -   Appointed Dr. Joseph Beckman, an expert in ALS, to Amorfix's
        Scientific Advisory Board.
    -   Graduated to the Toronto Stock Exchange on July 25, 2007.
    

    Financial Results

    For the three months ended June 30, 2007 the Company reported a net loss
from operations of $1,784,856 ($0.04 per share) compared to net loss of
$764,369 ($0.03 per share) for the three months ended June 30, 2006.
    Research and development expenses for the three months ended June 30,
2007 were $1,532,424 compared to $623,859 for the three months ended June 30,
2006. The difference was attributable mainly to an increase in vCJD diagnostic
program costs associated with scale up and pre-commercialization activities,
ALS therapeutic program development costs and higher personnel costs due to
the larger number of development programs operating in the current period.
    General and administrative expenses for the three months ended June 30,
2007 were $361,751 compared to $181,835 for the corresponding period in 2006.
The majority of the increase was due to higher stock-based compensation
expense and higher shareholder relations costs in the current period.
    Cash burn (cash used in operating activities) was $1,492,630 for the
three months ended June 30, 2007 compared to $639,945 for the corresponding
period in 2006. The increase in cash burn was as planned reflecting the
pre-commercialization activity of the vCJD blood screening assay, the
advancement of the Alzheimer's blood test, completion of pilot studies using
our disease-specific antibodies in the treatment of an ALS animal model and
early therapeutic research into another brain-wasting disease.
    For the three months ended June 30, 2007, Amorfix received cash proceeds
of $351,513 through the issuance of common shares on the exercise of warrants
and options.
    As at June 30, 2007, the Company had working capital of $12,591,509
compared to $13,835,243 at March 31, 2007.
    As at June 30, 2007 the Company had 41,052,647 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 program is a diagnostic blood screening test for
vCJD.

    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.

    
    Amorfix Life Sciences Ltd.
    (a development stage company)
    Interim Balance Sheets

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

    Assets

    Current assets
    Cash and cash equivalents                         1,104,620    1,660,594
    Marketable securities                            11,463,285   12,192,600
    Amounts receivable                                  280,801      229,692
    Tax credits receivable                              250,082      283,527
    Prepaid expenses                                     92,950      132,312
                                                    -------------------------

    Total current assets                             13,191,738   14,498,725

    Property and equipment, net                         297,168      204,732
    Technology rights, net                               23,154       30,873
                                                    -------------------------

                                                     13,512,060   14,734,330
                                                    -------------------------
                                                    -------------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities            600,229      663,482
                                                    -------------------------

    Total current liabilities                           600,229      663,482
                                                    -------------------------

    Shareholders' Equity

    Common shares                                    18,507,758   18,028,305
    Warrants and options                              2,582,056    2,404,259
    Contributed surplus                                   6,302        4,056
    Accumulated other comprehensive loss                (83,657)           -
    Deficit                                          (8,100,628)  (6,365,772)
                                                    -------------------------

                                                     12,911,831   14,070,848
                                                    -------------------------

                                                     13,512,060   14,734,330
                                                    -------------------------
                                                    -------------------------



    Amorfix Life Sciences Ltd.
    (a development stage company)
    Interim Statements of Operations
    (Unaudited)

                                                                 Period from
                                                                  January 23,
                                             Three Months               2004
                                                Ended             (inception)
                                               June 30,           to June 30,
                                               2007         2006        2007
                                                 $            $            $

    Revenue
    Interest earned                        135,117       47,977      425,325
                                       --------------------------------------

    Expenses
    Research and development             1,532,424      623,859    6,107,292
    General and administrative             361,751      179,916    1,893,048
    Amortization of property and
     equipment                              18,079        8,220       77,761
    Amortization of technology rights        7,719          351       18,159
                                       --------------------------------------

                                         1,919,973      812,346    8,096,260
                                       --------------------------------------

    Loss before the undernoted          (1,784,856)    (764,369)  (7,670,935)

    Costs related to reverse takeover
     of Luxor                                    -            -      479,693
                                       --------------------------------------

    Loss for the period                 (1,784,856)    (764,369)  (8,150,628)
                                       --------------------------------------
                                       --------------------------------------

    Basic and diluted loss per
     common share                            (0.04)       (0.03)
                                       -------------------------
                                       -------------------------

    Weighted average number of common
     shares outstanding                 40,881,750   29,436,072
                                       -------------------------
                                       -------------------------



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

                                                                 Period from
                                                                  January 23,
                                              Three Months              2004
                                                 Ended           (inception)
                                                June 30,          to June 30,
                                              2007         2006         2007
                                                 $            $            $
    Cash provided by (used in)

    Operating activities
    Loss for the period                 (1,784,856)    (764,369)  (8,100,628)
    Amortization of property and
     equipment                              18,079        8,220       77,761
    Amortization of technology rights        7,719          351       18,159
    Stock-based compensation               307,983      172,413    1,319,538
    Non-cash interest expense                    -            -        2,673
    Non-cash costs related to reverse
     takeover of Luxor                           -            -      232,442
    Changes in non-cash working
     capital (note 5)                      (41,555)     (56,560)    (114,066)
                                       --------------------------------------

                                        (1,492,630)    (639,945)  (6,564,121)
                                       --------------------------------------

    Investing activities
    Purchase of marketable securities            -     (987,380) (20,065,070)
    Sale of marketable securities          695,658    5,176,935    8,518,128
    Purchase of property and equipment    (110,515)     (83,056)    (374,929)
    Purchase of technology rights                -       (7,000)     (41,313)
                                       --------------------------------------

                                           585,143    4,099,499  (11,963,184)
                                       --------------------------------------

    Financing activities
    Issuance of common shares, net of
     cash issue costs                            -            -    4,222,185
    Issuance of common share units,
     net of cash issue costs                     -            -   11,973,069
    Issuance of common shares on
     exercise of warrants                  333,513      555,175    2,746,025
    Issuance of common shares on
     exercise of options                    18,000       66,778      423,868
    Cash acquired on reverse takeover
     of Luxor                                    -            -      141,778
    Issuance of promissory note                  -            -      125,000
                                       --------------------------------------

                                           351,513      621,963   19,631,925
                                       --------------------------------------

    Net increase (decrease) in cash
     and cash equivalents during
     the period                           (555,974)   4,081,517    1,104,620

    Cash and cash equivalents -
     Beginning of period                 1,660,594      113,794            -
                                       --------------------------------------

    Cash and cash equivalents -
     End of period                       1,104,620    4,195,311    1,104,620
                                       --------------------------------------
                                       --------------------------------------
    





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

Organization Profile

Amorfix Life Sciences Ltd.

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