Liponex Inc. Announces 2007 Second Quarter Results



    OTTAWA, Aug. 1 /CNW/ - Liponex Inc. (TSX:LPX), a biopharmaceutical
company specializing in developing advanced products related to High Density
Lipoprotein (HDL), often called "good cholesterol," today announced its
results for the second quarter ended June 30, 2007.
    "As we announced previously, data from our last trial did not meet our
end goal of a statistically significant increase in HDL, but it showed trends
to efficacy in key subsets of patients. These results provided valuable
guidance for the CRD5 development program. We have already announced the
successful development of an enteric coated granule formulation of CRD5
designed to improve bioavailability. Although our recent efforts with
mini-pigs did not provide definitive results, we will continue to work on
validating this animal model for use in testing the efficacy of new
formulations of CRD5," said Bill Dickie, President and CEO of Liponex. "We
have also concluded that an expanded follow-on human trial designed and
executed to clearly and unambiguously test the efficacy of CRD5 in a patient
population will require additional time and funds. Consequently, while we
continue to advance the CRD5 program in the short term with available
resources, our primary focus will be to secure a partnership, co-development
agreement, or financing arrangement to take it forward. In parallel, we will
move quickly to seek out strategic options to leverage the company's assets
and resources."

    Results for the Quarter Ended June 30, 2007

    All amounts are in Canadian dollars unless otherwise noted.
    As at June 30, 2007, the Company had cash and short-term investments of
approximately $4.29 million and working capital of approximately $4.53 million
available to fund operations compared with cash of $6.0 million and working
capital of $6.1 million at December 31, 2006. We expect that our cash and
short-term investments will be sufficient to sustain operations through at
least the third quarter of 2008.
    The net loss for the quarter was $865,260 or ($0.04) per share, compared
with a net loss of $714,412, or ($0.03) per share, for the same period in
2006. The increase in our net loss was principally caused by increased
formulation efforts, animal testing and clinical trial planning expenditures
included in research and development expenses. In addition, we had additional
clinical trial expenditures included in research and development expenses as
our Phase I/II clinical trial was completed in the first quarter of 2007. We
believe that the general level of operating expenses and net loss observed in
the first half of 2007 will continue for the remainder of 2007.
    General and administrative expenses increased to $340,386 for the three
months ended June 30, 2007 from $260,086 for the same period in 2006. The
increase in general and administrative expenses was from an increase in annual
reporting costs due to increase in the base of shareholders. We expect that
general and administrative expenses will remain relatively constant or
decrease slightly for the remainder of 2007.
    Research and development expenses for the three months ended June 30,
2007 were $574,133, net of $61,500 in investment tax credits, compared with
$526,818, net of $39,900 in investment tax credits, in the second quarter of
the previous year. The increase in gross research and development expenses was
largely attributable to increased formulation efforts, animal testing and
clinical trial planning expenditures. Gross research and development costs and
activity are expected to remain relatively constant for the remainder of 2007
as CRD5 research and development continues.
    Interest and other income for the three months ended June 30, 2007 was
$49,259 compared with $72,492 for the same period in 2006.

    Excerpts from the financial statements are attached.

    About Liponex
    Liponex is a biopharmaceutical company specializing in developing
products related to High Density Lipoprotein (HDL), often called "good
cholesterol." Its drug candidates relate to the various roles of HDL as a
transport vehicle, including removing excess cholesterol from the body,
delivering molecules to cells and removing unwanted materials from the body.
Liponex is listed on the TSX under the ticker "LPX". For more information on
Liponex, visit www.liponex.ca.

    Certain of the statements contained in this press release contain
forward-looking statements, which involve known and unknown risks,
uncertainties and a number of other important factors which may cause the
actual results, performance or achievements of the Company, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Statements of "expectation" or "belief" in respect of the undertaking of
future human trials for CRD5 as well as CRD5's efficacy in raising HDL levels,
are based primarily upon results derived to date from the Company's
pre-clinical research and development and its results from completed Phase I
and Phase I/II clinical trials. While the Company believes that it has
reasonable scientific basis upon which to make such statements, it is not
possible to predict whether a new therapeutic agent will be prove to be safe
and/or effective in humans. The Company cannot guarantee that it actually will
achieve the plans, intentions or expectations and undue reliance should not be
placed on those forward-looking statements. The Company does not expect to
update forward-looking statements continually as conditions change. Investors
are referred to the full discussion of risk factors associated with the
Company's business contained in the Company's periodic regulatory filings,
which can be found in the SEDAR database at www.sedar.com.


    
    Liponex Inc.
    (a development stage company)
    Balance Sheet
    -------------------------------------------------------------------------

                                                       June 30,  December 31,
                                                          2007          2006
                                                             $             $
                                                    (unaudited)
    Assets

    Current assets
    Cash                                               186,712       914,655
    Short-term investments                           4,107,616     5,043,616
    Investment tax credits recoverable                 432,147       427,022
    Prepaid expenses and receivables                   205,662       177,873
                                                   --------------------------

                                                     4,932,137     6,563,166
    Restricted cash                                     32,000        32,000
    Capital assets                                     237,182       213,387
                                                   --------------------------

                                                     5,201,319     6,808,553
                                                   --------------------------
                                                   --------------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities           306,400       319,106
    Accrued compensation                               100,280       122,505
    Other obligation                                         -        40,000
                                                   --------------------------

                                                       406,680       481,611
                                                   --------------------------
    Shareholders' Equity
    Capital stock                                   14,521,216    14,341,143
    Contributed surplus                                494,436       426,043
    Accumulated deficit                            (10,221,013)   (8,440,244)
                                                   --------------------------

                                                     4,794,639     6,326,942
                                                   --------------------------

                                                     5,201,319     6,808,553
                                                   --------------------------
                                                   --------------------------



    Liponex Inc.
    (a development stage company)
    Statements of Operations and Accumulated Deficit
    -------------------------------------------------------------------------

                             Three months ended          Six months ended
                           June 30,      June 30,     June 30,      June 30,
                              2007          2006         2007          2006
    -------------------------------------------------------------------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    Revenue           $          -  $          -  $          -  $          -

    Operating expenses
      General and
       administrative      340,386       260,086       666,392       611,788
      Research and
       development         574,133       526,818     1,220,026       943,390
                      -------------------------------------------------------

    Loss from operations  (914,519)     (786,904)   (1,886,418)   (1,555,178)

    Investment income       49,259        72,492       105,649       136,331
                      -------------------------------------------------------
    Net loss for the
     period               (865,260)     (714,412)   (1,780,769)   (1,418,847)

    Accumulated deficit,
     beginning of the
     period             (9,355,753)   (5,870,464)   (8,440,244)   (5,166,029)
                      -------------------------------------------------------
    Accumulated deficit,
     end of the
     period           $(10,221,013) $ (6,584,876) $(10,221,013) $ (6,584,876)
                      -------------------------------------------------------
                      -------------------------------------------------------
    Weighted average
     number of common
     shares
     outstanding        21,758,357    21,580,867    21,715,460    21,580,867
                      -------------------------------------------------------
                      -------------------------------------------------------
    Basic and diluted
     loss per common
     share            $      (0.04) $      (0.03) $      (0.08) $      (0.07)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Liponex Inc.
    (a development stage company)
    Statements of Cash Flows
    -------------------------------------------------------------------------

                           Three months ended            Six months ended
                          June 30,      June 30,      June 30,      June 30,
                            2007          2006          2007          2006
    -------------------------------------------------------------------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    Cash flows from
     (used in)

    Operating activities
      Net loss for the
       period         $   (865,260) $   (714,412) $ (1,780,769) $ (1,418,847)
      Items not
       involving cash -
        Depreciation and
         amortization       27,700        20,412        53,397        37,938
        Share-based
         compensation       51,339        26,824        87,239        48,718
        Interest accrued
         on short-term
         investments       (39,889)      (74,055)      (89,205)     (143,492)
        Interest accrued
         on long-term
         obligation              -         1,567             -         3,667
      Change in operating
       components of
        working capital   (280,431)      (93,680)      (67,845)      (99,164)
                      -------------------------------------------------------
                        (1,106,541)     (833,344)   (1,797,183)   (1,571,180)
                      -------------------------------------------------------

    Investing activities
      Purchase of capital
       assets               (4,090)      (10,195)      (77,191)      (50,902)
      Sale of short-term
       investments       1,025,205     1,026,608     1,025,205     2,042,033
                      -------------------------------------------------------
                         1,021,115     1,016,413       948,014     1,991,131
                      -------------------------------------------------------

    Financing activities
      Proceeds on exercise
       of stock options and
       warrants                  -             -       161,226             -
      Repayments of other
       obligation                -       (40,000)      (40,000)      (60,000)
                      -------------------------------------------------------
                                 -       (40,000)      121,226       (60,000)
                      -------------------------------------------------------

    Change in cash for
     the period            (85,426)      143,069      (727,943)      359,951

    Cash - beginning of
     the period            272,138       629,600       914,655       412,718
                      -------------------------------------------------------

    Cash - end of the
     period           $    186,712  $    772,669  $    186,712  $    772,669
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00022196E




For further information:

For further information: Investor Relations, Michael Moore, The Equicom
Group Inc., (416) 815-0700 ext. 241, mmoore@equicomgroup.com

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