Celator Pharmaceuticals, Inc. Receives $1,937,000 from New Jersey's Technology Business Tax Certificate Transfer Program
EWING, N.J., Jan. 5, 2015 /PRNewswire/ -- Celator Pharmaceuticals, Inc. (Nasdaq:CPXX), a biopharmaceutical company transforming the science of combination therapy and developing products to improve patient outcomes in cancer, today announced that it has recently received approximately $1,937,000 from the sale of its net operating losses under the New Jersey Technology Business Tax Certificate Transfer Program for the year 2014.
"We are delighted the New Jersey Economic Development Authority (NJEDA) approved Celator to participate in this program. The nearly $1.94 million in non-dilutive funding further extends the company's cash position into the second half of 2016. Celator remains on track to have the induction response rate data from the Phase 3 study of CPX-351 in patients with high-risk (secondary) Acute Myeloid Leukemia in the second quarter of 2015 and expects to have overall survival data, the primary endpoint of the study, in the first quarter of 2016. In addition, formulation and preclinical data packages for all three novel drug combinations using Celator's proprietary platform technology announced in July 2014 are expected to be completed by the end of the third quarter of 2015. We are thankful for New Jersey's strong support of the biotechnology industry," stated Scott Jackson, Celator's Chief Executive Officer.
This program enables approved, unprofitable New Jersey-based technology and biotechnology businesses to sell their unused net operating loss carryovers and unused research and development tax credits to unaffiliated, profitable corporate taxpayers in New Jersey for at least 80% of the value of the tax benefits. This allows those technology and biotechnology businesses to turn their tax losses and credits into cash to fund equipment and facilities, and for other allowable expenditures. The NJEDA determines eligibility, and the New Jersey Division of Taxation determines the value of the tax benefits. Celator was approved to sell approximately $2,083,000 of net operating losses through this program in 2014. Celator has been approved to participate in the program for each of the last six years, with the amount received this year being the largest to date.
About Celator Pharmaceuticals, Inc.
Celator Pharmaceuticals, Inc., with locations in Ewing, N.J., and Vancouver, B.C., is a clinical stage biopharmaceutical company transforming the science of combination therapy, and developing products to improve patient outcomes in cancer. Celator's proprietary technology platform, CombiPlex®, enables the rational design and rapid evaluation of optimized combinations incorporating traditional chemotherapies as well as molecularly targeted agents to deliver enhanced anti-cancer activity. CombiPlex addresses several fundamental shortcomings of conventional combination regimens, as well as the challenges inherent in combination drug development, by identifying the most effective synergistic molar ratio of the drugs being combined in vitro, and fixing this ratio in a nano-scale drug delivery complex to maintain the optimized combination until exposure to the tumor following administration. Celator's pipeline includes lead product, CPX-351 (a liposomal formulation of cytarabine:daunorubicin) for the treatment of acute myeloid leukemia; CPX-1 (a liposomal formulation of irinotecan:floxuridine) for the treatment of colorectal cancer; a preclinical stage product candidate, CPX-8 (a hydrophobic docetaxel prodrug nanoparticle formulation), being studied by the National Cancer Institute's Nanotechnology Characterization Laboratory; and several programs exploring novel combinations of existing drugs, including molecularly targeted therapies.
For more information, please visit Celator's website at www.celatorpharma.com. Information on ongoing trials is available at www.clinicaltrials.gov.
Forward-Looking Statements:
To the extent that statements contained in this press release are not descriptions of historical facts regarding Celator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "anticipate," "believe," "estimate," "intend," and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Examples of forward-looking statements contained in this press release include, among others, statements regarding the safety, efficacy and therapeutic potential of CPX-351 and our expectations regarding our research and development programs, the availability of data from clinical studies and expanding our pipeline and advancing our CombiPlex platform. Forward-looking statements in this release involve substantial risks and uncertainties that could cause our preclinical and clinical development programs and other future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the conduct of ongoing and future clinical studies and other matters that could affect the commercial potential of our drug candidates. Celator undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see Celator's Form 10-K for the year ended December 31, 2013 and other filings by the company with the U.S. Securities and Exchange Commission.
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SOURCE Celator Pharmaceuticals, Inc.