News ReleasesProtox Reports 2009 Second Quarter Results Vancouver, British Columbia, August 14, 2009 – Protox Therapeutics Inc. (TSX: PRX), a leader in the development of receptor targeted fusion proteins, today announced second quarter 2009 financial results for the six months ended June 30, 2009. “Protox made substantial progress during the second quarter highlighted by the addition of Dr. Giaquinto to our board of directors, completion of a private placement financing and continued enrollment in the double blinded, placebo controlled BPH study (TRIUMPH),” said Dr. Fahar Merchant, President and CEO of Protox. “We are excited and look forward to the potential of unlocking substantial value in the PRX302 BPH program as we announce key data driven catalysts and milestones in the next two quarters particularly the 12 month Phase 2 open-label BPH results followed by the TRIUMPH Phase 2b BPH data.” 2009 Q2 Highlights
FINANCIAL RESULTS Total expenses in 2009 Q2 were lower than the preceding two quarters due to the Company’s efforts to focus its resources on the development of its lead program, PRX302 for the treatment of BPH, in response to the current economic climate. For the three months ended June 30, 2009, the Company reported a net and comprehensive loss of $1.8 million or $0.02 per share compared to $1.9 million or $0.03 per share for the three months ended June 30, 2008 comparative period (“2008 Q1”). The net loss for the six months ended June 30, 2009 (“2009 YTD”) totaled $4.1 million or $0.05 per share compared to $3.9 million or $0.06 per share for the six months ended June 30, 2008. The modest increase in net loss over the comparative periods in 2008 is primarily driven by the initiation of our TRIUMPH study in the first quarter of 2009 which increased our research and development costs. This increase was partially offset by reduced infrastructure costs as we consolidate and focus operations on our lead clinical program. Research and development (“R&D”) costs of nearly $1.3 million were incurred during 2009 Q2 – an increase of $77,000 (6%) over the $1.2 million incurred for the 2008 Q2 comparative period. The increase for the period reflects the effect of the continuing maturity of Protox’s drug development and clinical trial activities and increased number of patients enrolled in our studies. Direct costs incurred in 2009 Q2 for our PRX302 clinical programs for the treatment of BPH and prostate cancer as well as activities associated with maintaining our PRX321 program totaled $1.1 million compared to $600,000 for 2008 Q2. This increase is largely driven by the commencement of enrollment of the TRIUMPH study. This increase is offset by a reduction in internal costs as the Company concentrates its resources on its lead program, the PRX302 TRIUMPH study for the treatment of BPH. For the six months ended June 30, 2009, R&D costs totaled $2.9 million representing a $200,000 (9%) increase from $2.6 million incurred during the comparative 2008 period. The increase reflects the advancement of our clinical programs, primarily the commencement of enrollment of the TRIUMPH study. 2009 Q2 general and administrative (“G&A”) costs of $498,000 decreased by $121,000 (20%) from $619,000 in the preceding quarter and decreased 9% from $546,000 incurred during the 2008 Q2 comparative period. G&A costs will generally vary from period to period depending on the specific business development, market research and shareholder relations initiatives undertaken and related travel required at such time to support the Company’s corporate objectives. The higher G&A costs incurred in 2009 Q1 included non-recurring costs associated with our efforts to consolidate and focus operations on our lead clinical TRIUMPH program. G&A costs for the six months ended June 30, 2009 of $1.1 million were only marginally higher than the $1.1 million incurred during the 2008 YTD comparative period. The Company anticipates that cost savings efforts implemented in 2009 will result in lower future G&A costs while the Company focuses on completion of its lead clinical program in BPH. At June 30, 2009, the Company had cash and cash equivalents of $5.6 million, representing a net decrease of $1.1 million from December 31, 2008. The Company had working capital of $4.03 million at June 30, 2009, a decrease of $1.9 million from December 31, 2008. As at the date of this report, the Company has 84,448,048 common shares issued and outstanding. In addition, the Company has 4,857,500 options outstanding to purchase common shares of the Company. Of the options currently outstanding, approximately 3,600,000 million are exercisable into an equivalent number of common shares of the Company at exercise prices ranging from $0.52 to $1.00 and with an average exercise price of $0.81. For complete financial results, please see our filings at www.sedar.com. About Protox 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.
James Beesley Michael Moore |
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