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Protox releases 2004 financial statements
Monday, April 25th, 2005 - Vancouver, British Columbia - Protox Therapeutics Inc.
announced today the release of its year end financial statements for the period
ending December 31, 2004.
"2004 has been a period of tremendous progress for Protox with the achievement of
several significant scientific, manufacturing and business milestones," stated Fahar
Merchant, PhD, President and CEO of the Company. "The team at Protox has moved
our drug development program from the lab toward human clinical trials in record
time. With the recent completion of additional pre-clinical studies, we are further
encouraged that our Aerolysin technology platform may hold significant potential as
a treatment for localized prostate cancer and other indications. We look forward to
reporting additional milestones as we move toward filing an Investigational New
Drug (IND) application in the United States."
Operational highlights for 2004 include:
- Completion of the Qualifying Transaction through a reverse takeover of SNB
Capital Corporation, which at the time of closing had net working capital of
$2.5 million by combining the assets of SNB and Pharmaceuticals. Completion
of an oversubscribed public offering raising $4.5 million.
- Executed an exclusive license agreement with the University of Victoria and
Johns Hopkins University (JHU) for the worldwide rights to commercialize the
Aerolysin technology platform for the treatment of prostate cancer.
- Executed a collaborative research agreement with the Sidney Kimmel
Comprehensive Cancer Center at Johns Hopkins Medicine. Some of these
data were presented by Dr. Simon Williams of JHU at the Annual Conference
of the American Academy of Cancer Research on April 20, 2005. (see
www.protoxtherapeutics.com under Technology/Publications)
- Pre-IND meeting held with the United States FDA to discuss the drug
candidate PSA-PAH1, for the treatment of recurrent and localized prostate
cancer.
Financial Statements
The financial results of the Company include the consolidation of Protox
Pharmaceuticals effective as of July 9, 2004.
Summary of Quarterly Results
As at December 31, 2004, the Company had current assets of $5,121,897 and did
not pay any dividends on its shares. Working capital at December 31, 2004 was
$4,101,768.
For the 12 month period ended December 31, 2004, the Company recorded $37,065
in interest income. During the period, the Company incurred research and
development expenses of $2,023,144 and administrative expenses of $977,847
resulting in a net loss of $2,984,815 or ($0.17) per share. Increased expenses
during the third and fourth quarters of 2004 can be attributed directly to the
expenses associated with the completion of the plan of arrangement and the related
prospectus financing. In addition, the last two quarters of 2004 were associated with
a ramp up of process development, scale-up, manufacturing and pre-clinical
activities associated with our lead product, PSA-PAH1, in development for the
treatment of localized prostate cancer.
The Company does not anticipate earning any revenue in the foreseeable future,
other than interest revenue earned on invested funds. In addition, expenses are
expected to fluctuate over the coming quarters due to initiation and completion of
key activities associated with the Company's research & development programs.
Based on its working capital position as at December 31, 2004, the proceeds
received from the prospectus financing on July 9, 2004, and its current business
plan, the Company anticipates that it will have sufficient funds to operate its
business for the next 12 months or more. However, the Company's working capital
may not be sufficient to meet its stated business objectives in the event of
unforeseen circumstances or a change in the strategic direction of the Company.
The Company will need to raise further capital in order to advance its research &
development programs to commercialization. There can be no assurance that the
Company will be able to obtain further financing on terms that are acceptable, if at
all.
ABOUT PROTOX: Protox Therapeutics Inc. is developing novel cancer therapeutics
by engineering the naturally occurring bacterial toxin Aerolysin, which kills cells by
forming pores in them. The Company believes that its engineering approach will
produce targeted cancer therapeutics that have greater efficacy and fewer side
effects than existing cancer treatments.
Company financials for the year ended December 31, 2004 and Management's
Discussion and Analysis will be available at www.sedar.com
For more information, contact:
Terry Vanderkruyk
Director, Investor Relations, Protox Therapeutics Inc.
Tel: 604-688-4376
Cell: 604-789-0844
Fax: 604-688-0173
tvanderkruyk@protoxtherapeutics.com
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