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Protox Releases Q1, 2006 Financial Statements; Prostate Cancer Trial on Track
Monday, May 29, 2006 - Vancouver, British Columbia - Protox Therapeutics Inc. (TSX-V: PRX)
announced today the release of its financial statements for the three months ending
March 31, 2006 and provided an update on company progress.
Operational Highlights
- Following approval by the United States Food and Drug Administration (FDA) in
the first quarter to begin clinical trials using PRX302 for the treatment of localized
recurrent prostate cancer, the first patient was treated on May 2, 2006.
- Preclinical data was presented at the American Association of Cancer Research
(AACR) meeting in April which demonstrated the validity of PRX302 as a treatment
for prostate cancer and benign prostatic hyperplasia (BPH)
“We are pleased with the progress of the prostate cancer trial and are on track
to complete patient recruitment by year end,” stated Dr. Fahar Merchant, President and
CEO of Protox. “Simultaneously, we are adding considerable value to PRX302 by pursuing
the BPH indication, which represents another significant market opportunity.”
Financial Statements
Results of operations for the three months ended March 31, 2006
For the three months ending March 31, 2006 the Company reported a net loss of $854,824
($0.02 per share) compared to a net loss of $982,913 ($0.04 per share) for the same
period last year. The Company earned $33,783 in interest income for the three months
ending March 31, 2006 compared with $22,178 in the first quarter of 2005.
For the quarter ended March 31, 2006, the Company incurred expenses related to research
and development of $421,977, compared to $687,347 for the quarter ending March 31, 2005.
The majority of the research and development expenditures in the first quarter of 2006
were related to the preparation for the Phase I clinical trials to treat localized,
recurrent prostate cancer with PRX302. The research and development expenditures
incurred during the same period last year were primarily related to the preclinical
animal studies and GMP manufacturing of PRX302. The research expenditures for the
three months ended March 31, 2006 were also offset by $113,335 of IRAP funding claimed
during the quarter.
The Company incurred general and administrative expenses of $420,019 for the quarter
ending March 31, 2006 compared to $235,979 for the same period last year. The increase
in general and administrative expenses is primarily due to the change in management in
2005 and additional employees hired to support the Company’s programs and business
development activities.
The Company does not anticipate earning any revenue in the foreseeable future, other
than interest revenue earned on invested funds. In addition, research expenses are
expected to increase over the coming quarters as the Company proceeds with the clinical
trials for prostate cancer, preparation of the BPH program for clinical trials and key
activities associated with the Company's research programs.
Summary of Quarterly Results
Liquidity and capital resources
As at March 31, 2006, the Company had cash and cash equivalents of $4,793,964 as
compared with $5,471,804 as at December 31, 2005. As at March 31, 2006, the Company
had working capital of $4,615,094 compared with $5,166,583 as at December 31, 2005 and
$3,455,528 as at March 31, 2005. The increase in current assets compared with March 31,
2005 can predominantly be attributed to the non-brokered private placement of $5,619,915,
net of cash costs of $251,885, completed in November 2005
Based on its working capital position as at March 31, 2006, the proceeds received from
the private placement financing in November, 2005, and its current business plan, the
Company anticipates that it will have sufficient funds to operate its business into Q2,
2007. 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 Therapeutics:
Protox Therapeutics is a product-focused development-stage company and a leader in
advancing novel, targeted protein toxin therapeutics for treatment of cancer and
other diseases. Through the company’s PORxin™ technology platform,
therapeutic candidates are generated by engineering the naturally occurring protein,
pro-aerolysin. These proteins become potent anti-cancer agents when activated at a
tumor site by specific proteases produced by cancer cells. Once activated, the drug
punches holes in the cancer cells causing the contents to leak out and ultimately,
cell death. Protox is in Phase I clinical trial with the lead compound, PRX302,
for the treatment of localized prostate cancer. PRX302 is also being developed for
treatment of benign prostatic hyperplasia.
For more information, contact:
Elayne Wandler
Director, Investor Relations and Corporate Communications, Protox Therapeutics Inc.
Direct: 604-688-4369
Cell: 778-865-0172
Fax: 604-688-0173
ewandler@protoxtherapeutics.com
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