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]
Share this article