Lorus Therapeutics reports third quarter results for fiscal year 2007
April 19 2007 - 8:30AM
PR Newswire (US)
TORONTO, April 19 /PRNewswire-FirstCall/ -- Lorus Therapeutics Inc.
("Lorus") (TSX: LOR; AMEX: LRP), a biopharmaceutical company
specializing in the research and development of pharmaceutical
products and technologies for the management of cancer, today
reported financial results for the three and nine month periods
ending February 28, 2007. Unless specified otherwise, all amounts
are in Canadian dollars. FINANCIAL RESULTS Net loss for the three
months ended February 28, 2007 was $2.1 million ($0.01 per share)
compared to a loss of $4.1 million ($0.02 per share) for the same
period last year. For the nine-month period ended February 28,
2007, the net loss was $7.9 million ($0.04 per share) compared to
$14.9 million ($0.09 per share) for the comparable period last
year. The decrease in net loss for the three months ended February
28, 2007 is primarily the result of reductions in research and
development expenses of $1.6 million, general and administrative
expenses of $76 thousand and stock based compensation expense of
$295 thousand. The year to date decrease in net loss is due largely
to a reduction of $5.7 million in research and development
expenses, lower general and administrative expenses of $576
thousand and lower stock based compensation expense of $737
thousand. Cash used in operating activities before changes in
non-cash working capital was $1.3 million for the three-month
period ended February 28, 2007 compared to $2.7 million in the same
period last year. For the nine-month period ended February 28, 2007
cash used in operating activities before changes in non-cash
working capital totaled $5.1 million compared with $11.0 million
for the nine months ended February 28, 2006. The decrease in cash
used in operating activities before changes in non-cash working
capital during the current three and nine month period ended is due
to lower research and development and general and administrative
expenditures in comparison with the same periods last year. During
the third quarter, the Company incurred approximately $530 thousand
in deferred arrangement costs associated with negotiating a
possible financing arrangement. These negotiations are ongoing but
have not yet resulted in a definitive agreement. Management expects
that it will complete these negotiations in the near term and will
provide details once an agreement is reached or a statement that
negotiations have terminated. These deferred costs and any
additional costs would be netted against proceeds from the
arrangement if completed or expensed if not completed. Research and
development expenses for the three-month period ended February 28,
2007 decreased 70.7% to $672 thousand compared to $2.3 million for
the same period last year. For the nine-month period ended February
28, 2007, research and development expenses decreased 64.8% to $3.1
million compared to $8.9 million for the same period last year. The
decrease in research and development costs is primarily due to a
reduction in toxicity study, clinical trial, compliance,
manufacturing and regulatory costs associated with the Phase III
Virulizin(R) development program which was ongoing during the
nine-month period ended February 28, 2006 and was subsequently
completed. Upon completion of the Virulizin(R) trial, the Company
significantly reduced its research personnel and, therefore, has
fewer employees engaged in research and development activities. The
ongoing research and development costs relate to the GTI-2040
clinical development program ongoing as well as our small molecule
pre-clinical program. General and administrative expenses for the
three-month period ended February 28, 2007 decreased to $833
thousand compared with $909 thousand in the same period last year.
General and administrative expenses for the nine-month period ended
February 28, 2007 decreased to $3.0 million compared with $3.6
million in the same period last year. The decrease in general and
administrative costs is the result of staff reductions, and a
continued focus on lowering costs in all areas of the business. The
cost savings realized during the current nine month period are
partially offset by charges incurred under the mutual separation
agreement entered into with Dr. Jim Wright. Lorus Therapeutics Inc.
Interim Consolidated Statements of Loss and Deficit (unaudited)
Three Three Nine Nine (amounts in 000's months months months months
except for per ended ended ended ended common share data) Feb 28,
Feb 28, Feb 28, Feb 28, (Canadian dollars) 2007 2006 2007 2006
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REVENUE $ 37 $ 5 $ 67 $ 12
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EXPENSES Cost of sales 6 1 12 2 Research and development 672 2,296
3,125 8,884 General and administrative 833 909 3,028 3,604
Stock-based compensation 105 400 368 1,105 Depreciation and
amortization of fixed assets 98 130 298 390
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Operating expenses 1,714 3,736 6,831 13,985 Interest expense on
convertible debentures 259 224 786 631 Accretion in carrying value
of convertible debentures 236 202 682 568 Amortization of deferred
financing charges 27 23 79 62 Interest income (137) (85) (362)
(295)
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Loss for the period 2,062 4,095 7,949 14,939
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Deficit, beginning of period 170,439 157,487 164,552 146,643
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Deficit, end of period $ 172,501 $ 161,582 $ 172,501 $ 161,582
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Basic and diluted loss per common share $ 0.01 $ 0.02 $ 0.04 $ 0.09
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Media, members of the financial community and shareholders are
invited to listen to the Company's quarterly earnings presentation
through an audio web cast on the Company's website at
http://www.lorusthera.com/ on Wednesday, April 25, 2007. About
Lorus Lorus is a publicly traded biopharmaceutical company focused
on the research and development of novel therapeutics in cancer.
Lorus' goal is to capitalize on its research, preclinical, clinical
and regulatory expertise by developing new drug candidates that can
be used, either alone, or in combination, to successfully manage
cancer. Through its own discovery efforts and an acquisition and
in-licensing program, Lorus is building a portfolio of promising
anticancer drugs. Late-stage clinical development and marketing
will be done in cooperation with strategic partners. Lorus has
completed one Phase II and one Phase III clinical trial. Lorus has
several product candidates in multiple Phase II clinical trials.
Lorus Therapeutics Inc. is listed on the Toronto Stock Exchange
under the symbol LOR, and on the American Stock Exchange under the
symbol LRP. Forward Looking Statements This press release may
contain forward-looking statements within the meaning of Canadian
and U.S. securities laws. Such statements include, but are not
limited to, statements relating to: our expectations regarding
future financings, our plans to conduct clinical trials, the
successful and timely completion of clinical studies and the
regulatory approval process, our plans to obtain partners to assist
in the further development of our product candidates, the
establishment of corporate alliances, the Company's plans,
objectives, expectations and intentions and other statements
including words such as "continue", "believe", "plan", "expect",
"intend", "will", "should", "may", and other similar expressions.
Such statements reflect our current views with respect to future
events and are subject to risks and uncertainties and are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by us are inherently subject to
significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors could cause our
actual results, performance or achievements to be materially
different from any future results, performance, or achievements
that may be expressed or implied by such forward-looking
statements, including, among others: our ability to obtain the
capital required for research and operations; the regulatory
approval process; the progress of our clinical trials; our ability
to find and enter into agreements with potential partners; our
ability to attract and retain key personnel; changing market
conditions; and other risks detailed from time-to-time in our
ongoing quarterly filings, annual information forms, annual reports
and annual filings with Canadian securities regulators and the
United States Securities and Exchange Commission. Should one or
more of these risks or uncertainties materialize, or should the
assumptions set out in the section entitled "Risk Factors" in our
Annual Report underlying those forward-looking statements prove
incorrect, actual results may vary materially from those described
herein. These forward-looking statements are made as of the date of
this press release and we do not intend, and do not assume any
obligation, to update these forward-looking statements, except as
required by law. We cannot assure you that such statements will
prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements.
Investors are cautioned that forward-looking statements are not
guarantees of future performance and accordingly investors are
cautioned not to put undue reliance on forward-looking statements
due to the inherent uncertainty therein. Lorus Therapeutics Inc.'s
recent press releases are available through the Company's website
at http://www.lorusthera.com/. DATASOURCE: Lorus Therapeutics Inc.
CONTACT: Lorus Therapeutics Inc., Dr. Saeid Babaei, (416) 798-1200
ext. 490,
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