ConjuChem Biotechnologies Announces Fiscal 2009 Year-End Financial Results
"We achieved an important milestone this year by confirming that PC-DAC(TM):Exendin-4 achieved statistically significant glycemic control and weight loss in Phase II clinical trials for Type 2 diabetes. The data achieved our efficacy and safety objectives and confirmed statistically significant reductions in HbA1c versus both baseline and placebo seen in all active treatment groups throughout the treatment period," said
The Company's net loss for the quarter ended
The Company recorded interest income on cash and short-term investments that amounted to
Net research and development expenses have decreased significantly in the quarter ended
General and administrative costs amounted to
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. BALANCE SHEETS As at October 31 2009 2008 $ $ ----------------------------- ASSETS Current Cash and cash equivalents 1,743,327 2,187,423 Investments 5,717,766 18,934,737 Accounts receivable 1,087,670 160,644 Investment tax credits receivable 524,000 542,000 Prepaid expenses 181,799 229,006 ----------------------------- Total current assets 9,254,562 22,053,810 Property, plant and equipment 635,550 841,685 Intangible assets 5,554 11,108 ----------------------------- 9,895,666 22,906,603 ----------------------------- ----------------------------- LIABILITIES AND SHAREHOLDERS' DEFICIENCY Current liabilities Accounts payable and accrued liabilities 3,135,216 10,080,463 ----------------------------- Total current liabilities 3,135,216 10,080,463 Convertible unsecured subordinated debentures 16,548,369 13,634,906 ----------------------------- 19,683,585 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 55,533,174 48,818,826 Deficit (348,182,669) (332,390,857) Accumulated other comprehensive loss 680 (71,657) ----------------------------- Total shareholders' deficiency (9,787,919) (808,766) ----------------------------- 9,895,666 22,906,603 ----------------------------- ----------------------------- ConjuChem Biotechnologies Inc. STATEMENTS OF DEFICIT Years ended October 31 2009 2008 $ $ ----------------------------- Deficit, beginning of year (332,390,857) (292,973,699) Net loss for the year (15,791,812) (39,417,158) ----------------------------- Deficit, end of year (348,182,669) (332,390,857) ----------------------------- ----------------------------- ConjuChem Biotechnologies Inc. STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS Years ended October 31 2009 2008 $ $ ----------------------------- REVENUES Contract revenues 37,113 60,731 Interest income 167,515 1,449,360 ----------------------------- 204,628 1,510,091 ----------------------------- EXPENSES Research and development 8,351,483 22,212,279 Investment tax credits (2,641,174) (701,306) ----------------------------- Net research and development expenses 5,710,309 21,510,973 General and administrative expenses 2,878,492 5,965,092 Amortization of property, plant and equipment 166,090 220,918 Amortization of intangible assets 5,554 10,122 Stock-based compensation 2,570,038 2,567,057 Financial charges 13,953 209,500 Foreign exchange loss 85,711 937,925 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 4,566,293 3,733,796 Loss on redemption of long-term investments - 267,439 ----------------------------- 15,996,440 40,927,249 ----------------------------- Net loss for the year (15,791,812) (39,417,158) Other comprehensive loss Unrealized gain (loss) on investments 72,337 (56,324) ----------------------------- Comprehensive loss (15,719,475) (39,473,482) ----------------------------- ----------------------------- Basic and diluted loss per share (0.06) (0.16) ----------------------------- ----------------------------- Weighted average number of common shares outstanding during the year 250,548,685 244,260,543 ----------------------------- ----------------------------- ConjuChem Biotechnologies Inc. STATEMENTS OF CASH FLOWS Years ended October 31 2009 2008 $ $ ----------------------------- OPERATING ACTIVITIES Net loss for the year (15,791,812) (39,417,158) Items not affecting cash Amortization of property, plant and equipment 166,090 220,918 Amortization of intangible assets 5,554 10,122 Amortization of premium on long-term investments - (8,436) Stock-based compensation 2,570,038 2,567,057 Accretion in carrying value of convertible senior unsecured notes and interest - 5,504,427 Accretion in carrying value of convertible unsecured subordinated debentures 2,939,437 2,292,066 Gain on sale of property, plant and equipment (44,273) - Loss on redemption of long-term investments - 267,439 ----------------------------- (10,154,966) (28,563,565) Net changes in non-cash working capital balances related to operations (7,807,066) 2,018,463 ----------------------------- Cash flows relating to operating activities (17,962,032) (26,545,102) ----------------------------- INVESTING ACTIVITIES Acquisition of investments (12,277,560) (46,878,259) Proceeds on maturities of investments 25,566,868 52,684,741 Acquisition of long-term investments - (167,037) Proceeds on redemption of long-term investments - 59,644,133 Acquisition of property, plant and equipment (13,138) (13,456) Proceeds from sale of property, plant and equipment 97,456 - Acquisition of intangible assets - (1,973) ----------------------------- Cash flows relating to investing activities 13,373,626 65,268,149 ----------------------------- FINANCING ACTIVITIES Proceeds from reorganization 5,000,000 - Costs of reorganization (855,690) - Repayment of convertible senior unsecured notes - (58,006,914) Issuance of convertible unsecured subordinated debenture units - 22,000,000 Issuance costs paid in cash - (1,764,414) ----------------------------- Cash flows relating to financing activities 4,144,310 (37,771,328) ----------------------------- Net change in cash and cash equivalents during the year (444,096) 951,719 Cash and cash equivalents, beginning of year 2,187,423 1,235,704 ----------------------------- Cash and cash equivalents, end of year 1,743,327 2,187,423 ----------------------------- ----------------------------- Supplemental cash flow information: Interest paid 1,727,229 13,899,840 -----------------------------
For further information: Mark Perrin, President and CEO, ConjuChem Biotechnologies Inc., (514) 844-5558 ext 311, [email protected]; Ross Marshall, Investor Relations, (416) 815-0700 ext. 238, [email protected]
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