TORONTO, Nov. 10, 2015 /CNW/ - ProMIS Neurosciences, Inc. announces today its operational and financial results for the three and nine months ended September 30, 2015.
Recent Corporate Highlights
As described below, the key highlights for the third quarter 2015 were the successful fund raising via private placement in July, the consolidation of the senior science team and the expansion of the exclusive worldwide license agreement with the University of British Columbia.
On July 6 and July 31, 2015, the Company completed the maximum authorized funding of CDN $2,500,000 via its non-brokered private placement offering that was announced May 22nd and approved at the Company's Annual and Special Shareholder Meeting of June 29th. A total of 83,333,333 common shares of ProMIS Neurosciences (Shares) at $0.03 per share were issued for gross proceeds of CDN $2,500,000.
The proceeds from the private placement have been used to pay off outstanding debt and to further the Corporation's re-launch with a clear focus on development of precision medicine solutions for neurodegenerative diseases, in particular Alzheimer's disease (AD) and amyotrophic lateral sclerosis (ALS). The additional working capital is being applied to generate new intellectual property allowing future development of specific therapeutics and companion diagnostics for neurodegenerative disease, continue support and maintenance of existing intellectual property, engage an experienced senior management team and for general corporate purposes.
On September 23, 2015, the Company announced that Professor Steven S. Plotkin Ph.D., an international authority on protein folding and currently in the faculties of Physics, Genome Sciences, and Bioinformatics at the University of British Columbia (UBC), has joined the company in the new role of Chief Physics Officer.
ProMIS' Chief Science Officer, Dr. Neil Cashman, and Dr. Plotkin are collaborating to continue to enhance the original ProMIS™ technology, as well as develop new, complementary tools to identify specific epitopes (binding sites) on misfolded, toxic strains of beta Amyloid and tau protein in Alzheimer's. Subsequent to identification of such epitope(s), the Company plans to initiate development of antibodies to bind to the newly identified epitope, allowing creation of both a monoclonal antibody-based therapeutic and companion diagnostic that are specific for each misfolded strain of beta Amyloid or Tau.
On October 8, 2015, the Company announced that it had entered into an exclusive license agreement to develop and commercialize intellectual property rights belonging to The University of British Columbia (UBC). This agreement significantly expands upon the original agreement from February 2009, and affords exclusive worldwide rights to intellectual property based on use of the ProMIS™ technology, modifications and enhancements to ProMIS™, as well as eventual new technologies under development.
Commenting on the recent Corporate Highlights, the Company's Executive Chairman, Eugene Williams stated: "Following on from the successful private placement in July, we have consolidated our science team, and significantly expanded our exclusive license agreement with the University of British Columbia. With these important accomplishments having laid the groundwork for the re-launch of the Company we are excited to enter the next phase of the Company's progress as we look forward to development of precision medicine solutions for Alzheimer's and ALS ".
The net loss for the nine months ended September 30, 2015 was $1,421,169 compared to a net loss of $2,370,659 for the nine months ended September 30, 2014. The decreased net loss in the current period results mainly from lower stock option compensation, reduced salaries related to fewer employees, and savings related to the restructuring of the company following the announcement of the closing of its operations in Mississauga, Ontario. Included in the expenses for the nine months ended September 30, 2015 is stock option compensation of $355,475 as compared with $902,754 in the comparative period.
Research and development expenses for the nine months ended September 30, 2015 were $711,425 as compared to $1,305,521 in the nine months ended September 30, 2014. The decrease in expenditures in the current period related mostly to lower salary costs as a result of headcount reductions, lower program costs and offset by higher stock option compensation.
General and administrative expenses for the nine months ended September 30, 2015 were $601,952 as compared to $1,311,049 in the nine months ended September 30, 2014. The decrease in expenditures in the current period resulted mainly from lower stock option compensation and lower investor relations activities, and a gain on the sale of equipment that was sold as part of the closing of its operations in Mississauga.
The net loss for the three months ended September 30, 2015 was $713,568 which is comparable to a net loss of $701,820 for the three months ended September 30, 2014. Savings related to the restructuring of the company following the announcement of the closing of its operations in Mississauga, Ontario were offset by higher stock option compensation in the current period. Included in the expenses for the three months ended September 30, 2015 is stock option compensation of $342,819 as compared with $190,001 of stock option compensation in the comparative period.
Research and development expenses for the three months ended September 30, 2015 were $366,433 as compared to $424,106 in the three month period ended September 30, 2014. The decrease in expenditures in the current period related mostly to lower salary costs, lower costs on its research programs related to the closing of the Mississauga operations, and offset by higher stock option compensation related to the stock options granted in the current period.
General and administrative expenses for the three months ended September, 2015 were $349,701 as compared to $336,189 in the three months ended September 30, 2014. Higher salaries related to hiring of a professional Executive Chair were offset by lower stock option compensation.
As at September 30, 2015, the Company had working capital of $1,019,456. These funds are expected to fund the operations of the Company into the second quarter of 2016.
The Company's priorities for the next year are to focus on identifying and developing precision medicine solutions for AD and ALS.
Regarding AD, the Company will continue to expand its Intellectual Property (IP) estate by identifying novel epitope targets on misfolded strains of proteins beta Amyloid and Tau. The Company's proprietary technique, ProMISTM, and potentially other complementary and proprietary computational methods under development, will be employed to identify and confirm such novel targets. Subsequent to identification of these targets and submission of initial IP claims, the Company will be in a position to enter the product development phase by elaborating and developing specific therapeutics and companion diagnostics aimed at these targets for Alzheimer's disease.
Regarding ALS, and given the Company's robust IP estate, in particular its ownership of the exclusive rights to the genus patent relating to misfolded SOD1 in ALS, ProMIS Neurosciences is actively looking to achieve a collaborative development partnership in this field.
Additional information about the Company, including the MD&A and financial results may be found on SEDAR at www.sedar.com.
A live webcast to review third quarter results, present the Company's near term plans and address questions from the audience will be held on Thursday, Nov. 12, at 11:00AM, Eastern Standard Time. To join the webcast, please go to the link below:
For those unable to attend, the recorded version will be available after the webcast on the Company website: www.promisneurosciences.com
About ProMIS Neurosciences, Inc.
The mission of ProMIS Neurosciences is to discover and develop precision medicine solutions for the early detection and effective treatment of neurodegenerative diseases, in particular Alzheimer's disease and ALS.
ProMIS uses its computational discovery platform—ProMIS™--to predict novel targets known as Disease Specific Epitopes (DSEs) on the molecular surface of misfolded proteins. Using this unique "precision medicine" approach, ProMIS Neurosciences is developing novel antibody therapeutics and specific companion diagnostics for Alzheimer's disease and ALS. The company has developed two proprietary technologies to specifically identify very low levels of misfolded proteins in a biological sample. In addition, ProMIS Neurosciences owns the exclusive rights to the genus patent relating to misfolded SOD1 in ALS, and currently has a preclinical monoclonal antibody therapeutic against this target.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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.
SOURCE ProMIS Neurosciences Inc.
For further information: please consult the Company's website at: www.promisneurosciences.com, or contact Dr. Elliot Goldstein, President and Chief Executive Officer, ProMIS Neurosciences Inc., Tel. 415 341-5783, [email protected]; Renmark Financial Communications Inc., Barry Mire: [email protected], D. Elizabeth Culley: [email protected], Tel: (416) 644-2020 or (514) 939-3989, www.renmarkfinancial.com