VANCOUVER, Nov. 14 /PRNewswire-FirstCall/ - Chemokine Therapeutics Corp. (the “Company”) , a biotechnology company developing chemokine-based therapies to treat cancer, blood disorders and vascular diseases, today announced the financial and operating results of the third quarter ended September 30, 2006.
Third Quarter Highlights: - Patent Issuance for Chemokine Analogs for the Treatment of Human Disease. The patent covers Chemokine analogs that are useful for the treatment of a variety of diseases and disorders. - The Company Presented Data on its Blood Vessel Regeneration Compound CTCE-0324 at 2006 Gordon Research Conference on Chemotactic Cytokines. - The Company Presented at Strategic Research Institute’s 8th Annual Anti-Cancer Drug Discovery & Development Summit. - Continued enrollment of subjects to the phase Ib clinical study of CTCE-0214 to enable the Company to evaluate the safety and pharmacologic profile of this compound as a single or multi-dose immune system booster. This clinical trial will also provide early evidence of CTCE-0214 use in combination with granulocyte colony stimulating factor (G-CSF). - Continued enrollment of subjects to the phase Ib/II clinical study of CTCE-9908. This study will assess the safety and preliminary signs of efficacy of CTCE-9908 after repeated administration in late stage cancer patients with CXCR4 positive cancer types.
“This third quarter has seen continued progress in our two ongoing clinical trials which includes a phase Ib clinical trial for CTCE-0214 as well as our clinical trial using CTCE-9908 in late stage cancer patients,” said Dr. Hassan Salari, President and CEO of Chemokine Therapeutics. “We expect data from the CTCE-0214 study at the end of the year with CTCE-9908 also on track to complete by mid 2007. Both studies will provide evidence of safety as well as establishing the foundation for future development of these products.”
Financial Results - Unaudited
(All amounts in U.S. dollars and in accordance with U.S. GAAP unless otherwise specified)
The Company incurred a net loss of $2,004,328 ($0.05 per share) during the three months ended September 30, 2006 compared to a net loss of $1,618,521 ($0.05 per share) during the same period in 2005. The increase in our net loss was principally due to the increase in research and development expenses as described below.
Research and development expenses were $1,464,591 during the three months ended September 30, 2006, compared to $1,051,986 for the three months ended September 30, 2005. The increase in research and development expenses in the current period was primarily attributable to the increased clinical trial and manufacturing costs for our two lead compounds CTCE-0214 and CTCE-9908. Research and development expenses also include preclinical and regulatory expenses and research staff salaries. During the quarter we continued dosing subjects under an ongoing, three stage, phase Ib clinical trial for CTCE-0214 which began in December 2005. In addition, research and development included enrollment of subjects to the CTCE-9908 phase Ib/II clinical trial.
We recorded general and administrative expenses of $525,351 for the three months ended September 30, 2006, compared to $598,743 for the comparative period in 2005. General and administrative expenses consist primarily of salaries, legal and accounting services, investor relations, office expenses, patent filing costs and business development.
For the three months ended September 30, 2006, we recorded stock-based compensation expense of $38,734, compared to $321,650 recorded for the three months ended September 30, 2005. The stock-based compensation expense for the three months ended September 30, 2005 includes a non-cash stock-based compensation charge.
We realized other income of $93,938 for the three months ended September 30, 2006, compared to $95,721 for the three months ended September 30, 2005. Other income consisted primarily of interest earned on cash balances and investments which benefited from increasing interest rates, quarter over quarter.
As of September 30, 2006, we had funds available of $8,207,992. For the three months ended September 30, 2006, we used net cash of $1,897,667 in operating activities consisting primarily of the net loss for the period of $2,004,328. We believe that our current funds will be sufficient to fund our operations through March 31, 2008.
About Chemokine Therapeutics Corp.
Chemokine Therapeutics is a product-focused biotechnology company developing drugs in the field of chemokines. Chemokines are a class of signaling proteins which play a critical role in the growth, differentiation and maturation of cells necessary for fighting infection as well as tissue repair and regeneration. Chemokines also have an important role in cancer metastasis and growth. Chemokine Therapeutics is a leader in research in the field of chemokines and has several products in various stages of development.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements in this document regarding managements’ future expectations, beliefs, goals, plans or prospects constitute forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “projects”, and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, those associated with the success of research and development programs, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company’s products, the availability of government and insurance reimbursements for the Company’s products, the strength of intellectual property, financing capability, the potential dilutive effects of any financing, reliance on subcontractors and key personnel and other risks detailed from time-to-time in the Company’s public disclosure documents and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. Forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Chemokine Therapeutics Corp. (A Development Stage Company) INTERIM CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars) September 30, December 31, 2006 2005 ------------- ------------ (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,417,759 $ 3,719,163 Investments 5,790,233 2,627,760 Amounts receivable 77,609 33,214 Prepaid expense and deposits 58,747 154,969 ------------- ------------ TOTAL CURRENT ASSETS 8,344,348 6,535,106 PROPERTY AND EQUIPMENT 377,279 351,438 LICENSE 18,222 23,993 DUE FROM AFFILIATE (Note 5) - 91,783 ------------- ------------ $ 8,739,849 $ 7,002,320 ------------- ------------ ------------- ------------ LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 228,750 $ 253,199 Due to affiliate (Note 5) 411,504 - Current portion of capital lease obligation 12,716 11,648 ------------- ------------ TOTAL CURRENT LIABILITIES 652,970 264,847 CAPITAL LEASE OBLIGATION 12,402 21,157 ------------- ------------ 665,372 286,004 ------------- ------------ STOCKHOLDERS’ EQUITY PREFERRED STOCK Authorized - 6,000,000 voting, participating shares; par value $ 0.001 per share Issued and outstanding: September 30, 2006 - Nil; December 31, 2005 - 2,000,000 - 2,000 COMMON STOCK Authorized - 100,000,000 voting, participating shares; par value $ 0.001 per share Issued and outstanding: September 30, 2006 - 42,183,748; December 31, 2005 - 31,897,206 42,184 31,897 ADDITIONAL PAID-IN CAPITAL 30,884,239 23,717,965 (DEFICIT) ACCUMULATED DURING THE DEVELOPMENT STAGE (22,851,946) (17,035,546) ------------- ------------ 8,074,477 6,716,316 ------------- ------------ $ 8,739,849 $ 7,002,320 ------------- ------------ ------------- ------------ See Edgar or Sedar for accompanying notes CHEMOKINE THERAPEUTICS CORP. (A Development Stage Company) INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. dollars) (Unaudited) Three months ended Nine months ended September 30, September 30, 2006 2005 2006 2005 ------------ ------------ ------------ ------------ REVENUE $ - $ - $ - $ 275,000 ------------ ------------ ------------ ------------ EXPENSES Research and development 1,464,591 1,051,986 3,900,707 2,526,187 General and administrative 525,351 598,743 2,215,003 1,884,613 Stock-based compensation 38,734 321,650 110,965 323,815 Amortization of license 1,923 1,924 5,770 5,771 Depreciation of property and equipment 53,024 16,452 127,454 27,860 Foreign exchange (gain) loss 14,643 (276,513) (288,309) (135,251) ----------- ------------ ------------ ------------ 2,098,266 1,714,242 6,071,590 4,632,995 ------------ ------------ ------------ ------------ OTHER INCOME 93,938 95,721 255,190 216,139 ------------ ------------ ------------ ------------ NET LOSS $(2,004,328) $(1,618,521) $(5,816,400) $(4,141,856) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ NET LOSS PER COMMON SHARE FOR THE PERIOD - BASIC AND DILUTED $ (0.05) $ (0.05) $ (0.15) $ (0.13) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 42,183,748 31,804,858 38,776,069 31,517,873 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ See Edgar or Sedar for accompanying notes
CONTACT: Chemokine Therapeutics Corp., Mr. Don Evans, Director of Public Relations, Phone: (604) 822-0305 or 1-888-822-0305, Fax: (604) 822-0302, E-mail: devans@chemokine.net, Internet: www.chemokine.net
Chemokine Therapeutics Corp.
CONTACT: Chemokine Therapeutics Corp., Mr. Don Evans, Director of PublicRelations, Phone: (604) 822-0305 or 1-888-822-0305, Fax: (604) 822-0302,E-mail: devans@chemokine.net, Internet: www.chemokine.net
