Protox reports 2006 financial results and achievements

    VANCOUVER, April 27 /CNW/ - Protox(TM) Therapeutics Inc. (TSX-V:PRX)
today released year-end financial statements for the 12 months ending
December 31, 2006.
    "2006 was a transformative year for Protox," said Dr. Fahar Merchant,
President and Chief Executive Officer. "Over the course of 12 months we have
made the transition from pre-clinical promise to encouraging interim clinical
results with our flagship drug candidate, PRX302 in prostate cancer. Today we
have two therapeutic platforms comprising multiple indications and clinical
data for over 100 patients. These accomplishments will create enduring value
for the company and set the stage for continued progress over the coming

    Operating Highlights

    -   On January 26, 2006 the US Food and Drug Administration approved an
        Investigational New Drug submission for PRX302 to treat localized
        recurrent prostate cancer and on May 2, 2006 the first patient was
        dosed at Scott & White Memorial Hospital. Three additional sites have
        since joined the trial including M.D. Anderson Cancer Centre,
        University of Vermont and Urology San Antonio.
    -   The PORxin(TM) patent family was further strengthened with the filing
        in June 2006 of a provisional patent application with the United
        States Patent and Trademark Office to protect drug candidates
        generated through the platform whose binding sites are altered to
        target certain types of cells including cancer cells. The PORxin
        platform was also enhanced with three scientific presentations at two
        international cancer conferences during the year.
    -   On July 20, 2006 the Company acquired a second technology platform
        from Neurocrine Biosciences Inc. and the US Public Health Service.
        The lead drug candidate, PRX321, has been studied in 72 patients in
        Phase I and IIa clinical trials for brain cancer and 14 patients in a
        Phase I trial to treat solid tumours. The compound is potentially
        indicated for up to a dozen different cancer indications.
    -   The Company received approval from Health Canada on October 11, 2006
        to initiate a Phase I clinical trial of PRX302 for benign prostatic
        hyperplasia (BPH or enlarged prostate). The trial was initiated on
        March 28, 2007 at two sites, in Victoria, British Columbia and
        Kitchener, Ontario, and the first patient was dosed on April 23,
    -   In late 2006 the Company raised gross proceeds of $10,049,750 in a
        brokered private placement of common share units to further the
        development of programs for PRX302 and PRX321 and for general
        corporate purposes.
    -   Promising interim results from the Phase I prostate cancer trial,
        reported on January 18, 2007, indicated that PRX302 was safe and
        well-tolerated with the ability to reduce PSA levels and decrease
        tumour burden in patients with localized recurrent prostate cancer.

    Financial Results & Capital Resources

    For the year ended December 31, 2006 ("2006"), the Company:

    -   Incurred a net loss of $5,012,646 ($0.13 per share), a 10% decrease
        from $5,549,332 ($0.22 per share) for the year ended December 31,
        2005 ("2005").
    -   Earned interest income of $145,378, a 133% increase from 2005, due to
        higher cash balances from financing.
    -   Reduced total operating expenses by 8% to $5,112,068 from $5,568,225
        incurred in 2005. Operating expenses for 2006 included R&D costs of
        $2,860,665, a 20% decrease from $3,555,987 in 2005. This decrease in
        R&D reflects a shift from preclinical to clinical activities. Costs
        for the Prostate Cancer Phase I clinical trial, initiated in May
        2006, totaled approximately $0.8 million and discovery research costs
        were approximately $0.5 million compared to $0.4 million in 2005.
        Costs associated with additional personnel to manage and execute the
        Company's expanded R&D and clinical trial initiatives as well as
        initial INxin(TM) license fees offset a portion of the $2 million
        reduction in preclinical testing and manufacturing costs from 2005.
    -   Incurred G&A expenses of $2,159,784 compared to $1,941,235 for 2005.
        The increase is primarily due to an increase in personnel and travel
        costs in support of the Company's expanded activities in 2006.


    2006, THREE MONTHS
     ENDED, (UNAUDITED)    DEC 31        SEP 30        JUN 30        MAR 31
    Interest income   $     42,853  $     32,991  $     35,750  $     33,783
    Total expenses    $  1,370,812  $  1,384,481  $  1,514,123  $    888,607
    Net loss          $ (1,327,959) $ (1,351,490) $ (1,478,373) $   (854,824)
    Net loss
     per share        $      (0.03) $      (0.04) $      (0.04) $      (0.02)

    2005, THREE MONTHS
     ENDED, (UNAUDITED)    DEC 31        SEP 30        JUN 30        MAR 31
    Interest income   $     15,079  $      8,895  $     16,182  $     22,178
    Total expenses    $  1,582,563  $  1,455,246  $  1,562,306  $  1,003,506
    Net loss          $ (1,570,622) $ (1,447,035) $ (1,548,762) $   (982,913)
    Net loss
     per share        $      (0.05) $      (0.06) $      (0.07) $      (0.04)

    The Company does not anticipate earning any revenue in the foreseeable
future, other than interest revenue earned on cash balances. Operating
expenses are expected to significantly increase during 2007 in conjunction
with the advancement of the Company's PRX301 and PRX321 clinical programs.
    At December 31, 2006, the Company had cash resources of $9,977,259 and
working capital of $8,918,615. Subsequently, the Company has raised an
additional $583,000 from the exercise of outstanding share purchase warrants.
The Company believes it will have sufficient resources to execute its current
business plan up to mid 2008. Thereafter, additional capital will be required
to further advance the Company's R&D programs through to commercialization.
The exercise of outstanding stock options and warrants represents potential
additional funding of up to $18 million.

    About Protox

    Protox Therapeutics is a leader in advancing novel, targeted therapeutics
for treatment of cancer and other proliferative diseases. The company is
actively developing two distinct but complementary platforms, INxin and
PORxin, and currently has four clinical programs in development. A Phase IIa
clinical trial into the use of PRX321 (INxin) for the treatment of primary
brain cancer has been completed and the drug has received Fast Track
Designation and Orphan Drug Status from the US FDA. In addition, a Phase I
trial has been completed for PRX321 to treat patients with renal cell
carcinoma and non-small cell lung cancer. Patient enrolment is underway for
two Phase I clinical trials using PRX302 (PORxin) for prostatic disease: one
to treat localized prostate cancer and the other to treat benign prostatic


    Certain statements included in this press release may be considered
forward-looking. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance or
achievements to be materially different from those implied by such statements,
and therefore these statements should not be read as guarantees of future
performance or results. All forward-looking statements are based on Protox'
current beliefs as well as assumptions made by and information currently
available to Protox and relate to, among other things, anticipated financial
performance, business prospects, strategies, regulatory developments, market
acceptance and future commitments. 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 Protox in its public securities filings; actual
events may differ materially from current expectations. Protox disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

For further information:

For further information: James Beesley, Director, Investor Relations,
Protox Therapeutics, (604) 484-0975,,; Michael Moore, Investor Relations, Equicom Group,
(416) 815-0700 x 241,

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