ConjuChem Announces Fiscal 2009 Third Quarter Financial Results
"During our fiscal third quarter, we had the opportunity to showcase the positive results from our Phase II program for PC-DAC(TM):Exendin-4 and from our PC-Insulin program at the American Diabetes Association's 69th Annual Scientific Sessions. We also continued to progress our partnering discussions for these products, focusing in particular on the advantageous features of PC-DAC(TM):Exendin-4, such as its excellent tolerability profile and its administration using a small volume, highly soluble liquid formulation," said
Financial Results
Net loss for the quarter ended
The Company recorded interest income on cash and investments that amounted to
Gross research and development expenses amounted to
General and administrative reflects a recovery amount of
As at
About ConjuChem
ConjuChem, a developer of next generation medicines from therapeutic peptides, creates long-acting compounds based on its proprietary bioconjugation platform technology. The Company has two major development programs: PC-DAC(TM):Exendin-4, a GLP-1 receptor agonist in Phase II clinical development and PC-Insulin, a long-acting basal insulin in preclinical development.
Detailed descriptions of the Company and its technologies 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's 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.
ConjuChem Biotechnologies Inc.
UNAUDITED INTERIM BALANCE SHEETS
As at
July 31, October 31,
2009 2008
$ $
----------------------------
ASSETS
Current
Cash and cash equivalents 600,239 2,187,423
Investments 3,704,941 18,934,737
Accounts receivable 1,013,069 160,644
Investment tax credits receivable 680,000 542,000
Prepaid expenses 278,195 229,006
----------------------------
Total current assets 6,276,444 22,053,810
Property, plant and equipment 677,072 841,685
Intangible assets 6,942 11,108
Other assets 653,325 -
----------------------------
7,613,783 22,906,603
----------------------------
----------------------------
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities
Accounts payable and accrued liabilities 3,803,428 10,080,463
----------------------------
Total current liabilities 3,803,428 10,080,463
Convertible unsecured subordinated debentures 15,767,248 13,634,906
----------------------------
19,570,676 23,715,369
----------------------------
Shareholders' deficiency
Capital stock 266,858,635 266,823,735
Warrants 10,817,394 10,817,394
Equity portion of convertible unsecured
subordinated debentures 5,184,867 5,193,793
Contributed surplus 50,893,422 48,818,826
Deficit (345,711,211) (332,390,857)
Accumulated other comprehensive loss - (71,657)
----------------------------
Total shareholders' deficiency (11,956,893) (808,766)
----------------------------
7,613,783 22,906,603
----------------------------
----------------------------
ConjuChem Biotechnologies Inc.
UNAUDITED INTERIM STATEMENTS OF DEFICIT
Three-months ended Nine-months ended
July 31, July 31, July 31, July 31,
2009 2008 2009 2008
$ $ $ $
--------------------------------------------------------
Deficit,
beginning of
period (344,298,290) (312,739,566) (332,390,857) (292,973,699)
Net loss for
the period (1,412,921) (8,736,726) (13,320,354) (28,502,593)
--------------------------------------------------------
Deficit, end
of period (345,711,211) (321,476,292) (345,711,211) (321,476,292)
--------------------------------------------------------
--------------------------------------------------------
ConjuChem Biotechnologies Inc.
UNAUDITED INTERIM STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
Three-months ended Nine-months ended
July 31, July 31, July 31, July 31,
2009 2008 2009 2008
$ $ $ $
--------------------------------------------------------
REVENUES
Contract revenues 13,589 8,827 29,032 60,731
Interest income 15,772 306,076 154,289 1,254,657
--------------------------------------------------------
29,361 314,903 183,321 1,315,388
--------------------------------------------------------
EXPENSES
Research and
development 1,532,858 6,153,681 8,597,138 15,233,963
Investment tax
credits (1,467,174) (100,000) (2,797,174) (300,000)
--------------------------------------------------------
Net research and
development expenses 65,684 6,053,681 5,799,964 14,933,963
General and
administrative
expenses (452,509) 1,198,403 2,058,651 3,996,354
Amortization of
property, plant
and equipment 39,882 55,411 124,568 165,511
Amortization of
intangible assets 1,389 2,462 4,166 7,386
Stock-based
compensation 681,835 643,099 2,074,596 2,015,937
Financial charges 2,434 2,987 11,331 13,294
Foreign exchange
loss (gain) (62,125) 60,543 55,167 251,818
Accretion in
carrying value of
convertible senior
unsecured notes
and interest - - - 5,504,427
Accretion in
carrying value of
convertible
unsecured
subordinated
debentures and
interest 1,165,692 1,035,043 3,375,232 2,661,852
Loss on redemption
of long-term
investments - - - 267,439
--------------------------------------------------------
1,442,282 9,051,629 13,503,675 29,817,981
--------------------------------------------------------
Net loss for
the period (1,412,921) (8,736,726) (13,320,354) (28,502,593)
OTHER COMPREHENSIVE
INCOME (LOSS)
Unrealized gain/
(loss) on
investments (528) (17,631) 71,657 (14,899)
--------------------------------------------------------
Comprehensive loss
for the period (1,413,449) (8,754,357) (13,248,697) (28,517,492)
--------------------------------------------------------
--------------------------------------------------------
Basic and diluted
loss per share (0.01) (0.04) (0.05) (0.12)
--------------------------------------------------------
--------------------------------------------------------
Weighted average
number of common
shares outstanding
during the
period 250,432,418 246,094,442 250,514,149 242,188,235
--------------------------------------------------------
--------------------------------------------------------
ConjuChem Biotechnologies Inc.
UNAUDITED INTERIM STATEMENTS OF CASH FLOWS
Three-months ended Nine-months ended
July 31, July 31, July 31, July 31,
2009 2008 2009 2008
$ $ $ $
--------------------------------------------------------
OPERATING
ACTIVITIES
Net loss (1,412,921) (8,736,726) (13,320,354) (28,502,593)
Items not
affecting cash:
Amortization of
property, plant
and equipment 39,882 55,411 124,568 165,511
Amortization
of intangible
assets 1,389 2,462 4,166 7,386
Amortization of
premium on
long-term
investments - - - (8,436)
Stock-based
compensation 681,835 643,099 2,074,596 2,015,937
Accretion in
carrying value
of convertible
senior unsecured
notes and interest - - - 5,504,427
Accretion in
carrying value of
convertible
unsecured
subordinated
debentures 749,064 672,613 2,158,316 1,630,769
Gain on proceeds
from sales of
property, plant
and equipment (4,019) - (9,272) -
Loss on
redemption of
long-term
investments - - - 267,439
--------------------------------------------------------
55,230 (7,363,141) (8,967,980) (18,919,560)
Net changes
in non-cash
working
capital
balances
relating to
operations (3,777,978) (63,878) (7,316,649) 462,379
--------------------------------------------------------
Cash flows
relating to
operating
activities (3,722,748) (7,427,019) (16,284,629) (18,457,181)
--------------------------------------------------------
INVESTING ACTIVITIES
Acquisition of
investments (1,221,596) (6,137,130) (10,264,700) (27,832,011)
Proceeds on
maturities of
investments 3,488,708 15,823,221 25,566,153 37,338,629
Acquisition
long-term
investments - - - (167,037)
Proceeds on
redemption of
long-term
investments - - - 59,644,132
Acquisition of
property, plant
and equipment (1,486) (1,318) (13,138) (11,090)
Proceeds from sales
of property, plant
and equipment 21,065 - 62,455 -
Acquisition of
intangible
assets - - - (1,179)
--------------------------------------------------------
Cash flows
relating to
investing
activities 2,286,691 9,684,773 15,350,770 68,971,444
--------------------------------------------------------
FINANCING ACTIVITIES
Repayment of
convertible
senior unsecured
notes - - - (58,006,914)
Issuance of
convertible
unsecured
subordinated
debentures - - - 22,000,000
Issuance costs
paid in cash - - - (1,764,414)
Increase in
other assets (653,325) - (653,325) -
--------------------------------------------------------
Cash flows
relating to
financing
activities (653,325) - (653,325) (37,771,328)
--------------------------------------------------------
Net change in
cash and cash
equivalents
during the
period (2,089,382) 2,257,754 (1,587,184) 12,742,935
Cash and cash
equivalents,
beginning of
period 2,689,621 11,720,885 2,187,423 1,235,704
--------------------------------------------------------
Cash and cash
equivalents,
end of period 600,239 13,978,639 600,239 13,978,639
--------------------------------------------------------
--------------------------------------------------------
Supplemental
cash flow
information:
Interest paid 912,568 892,926 1,727,229 13,899,840
--------------------------------------------------------
For further information: Mark Perrin, President and CEO, ConjuChem Biotechnologies Inc., (514) 844-5558 ext 311, [email protected]; James Smith, Investor Relations, (416) 815-0700 ext. 229, [email protected]
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