TORONTO, Aug. 17 /PRNewswire-FirstCall/ - ChondroGene Limited today announced its financial results for the second quarter ended June 30, 2006. The Company reported revenues of $873,020 for the period, compared to $1,498,472 for the three months ended June 30, 2005. Revenues were attributable to fees for service and amortization of the one time payment under the research collaboration with Pfizer that was announced in December 2004. The net loss for the quarter was $1,902,187 or $0.04 per share, compared to a net loss of $731,545 or $0.02 per share for the three-month period ended June 30, 2005. Revenues for the first six months of 2006 were $1,741,242 with a net loss of $4,106,290 or $0.10 per share, compared to revenues of $2,376,723 with a net loss of $1,858,140 or $0.05 per share, for the corresponding period in 2005. At the end of the quarter, the Company had $25,814,059 in cash and cash equivalents.
"In May, we completed our largest financing to date raising $25 million by way of a private placement. This will allow us to focus on the development and commercialization of our lead product ColonSentry(TM)," stated K. Wayne Marshall, President and CEO of ChondroGene. "The financing was one of the largest biotech financings in Canada this year and is a major accomplishment for ChondroGene."
Also during the quarter, the Company entered into a collaborative research study with Kaiser Permanente in Northern California to access clinical samples from an enriched population of patients with colon pathologies. These samples will be used to refine and evaluate ChondroGene's ColonSentry test. Kaiser Permanente is America's leading integrated health plan with headquarters in Oakland, California. Kaiser Permanente serves the health care needs of 8.3 million members in 9 states and the District of Columbia.
The Company presented data on its work on colon cancer and prostate cancer at the American Society of Clinical Oncology (ASCO) Annual Meeting in June. ASCO is the world's leading professional organization representing physicians who treat people with cancer and the Annual Meeting provides a venue where many new discoveries and innovations for cancer diagnosis and treatment are first disclosed. The two ChondroGene presentations were entitled "Novel blood biomarker panel detects human colorectal cancer" and "Blood-based biomarkers for detecting aggressive prostate cancer at time of biopsy".
A paper entitled "Novel Blood Biomarkers of Human Urinary Bladder Cancer" was also published in the June issue of Clinical Cancer Research, a journal that publishes original articles describing clinical research on the cellular and molecular characterization, prevention, diagnosis, and therapy of human cancer. The paper describes the use of ChondroGene's Sentinel Principle(TM) in a study to identify blood-based biomarkers for use in differentiating between bladder cancer and other genitourinary cancers, and between bladder cancer and healthy controls.
About ChondroGene
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ChondroGene is focussed on the application of functional genomics to enable early diagnosis and personalized therapeutic intervention based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle(TM), to detect and stage virtually any disease or medical condition from a simple blood sample. ChondroGene is currently applying the Sentinel Principle in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. For more information on ChondroGene, visit www.chondrogene.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
(Financial statements to follow.)
ChondroGene Limited
Consolidated Balance Sheets
Amounts in Canadian dollars
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June 30 December 31
2006 2005
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ASSETS
Current assets:
Cash and cash equivalents $ 25,814,059 $ 4,680,882
Accounts receivable 56,556 1,356,392
Investment tax credits recoverable 596,900 1,254,922
Prepaid expenses and deposits 394,885 365,715
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26,862,400 7,657,911
Capital assets 1,295,384 1,251,014
Intellectual property 1,063,601 1,284,675
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$ 29,221,385 $ 10,193,600
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LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 1,161,549 $ 929,837
Deferred revenue 782,830 2,134,361
Current portion of long term debt 147,924 139,427
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2,092,303 3,203,625
Long term debt 26,400 102,549
Shareholders' equity:
Capital stock 44,201,000 20,138,831
Contributed surplus 1,786,384 1,527,007
Deficit (18,884,702) (14,778,412)
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27,102,682 6,887,426
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$ 29,221,385 $ 10,193,600
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ChondroGene Limited
Consolidated Statements of Operations and Deficit
Amounts in Canadian dollars "Unaudited"
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Three months Three months Six months Six months
ended ended ended ended
June 30 June 30 June 30 June 30
2006 2005 2006 2005
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Revenue
Milestones $ - $ 612,600 $ - $ 612,600
Fees for service 193,792 206,644 390,251 413,132
One-time payment 679,228 679,228 1,350,991 1,350,991
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873,020 1,498,472 1,741,242 2,376,723
Expenses
Research and
development 2,101,928 1,592,652 4,468,129 2,927,746
General and
administrative 490,070 420,788 1,002,752 842,491
Stock compensation 182,975 145,604 296,407 319,489
Amortization of
intellectual
property 110,537 110,538 221,074 221,073
Interest on long
term debt 5,470 9,300 11,940 19,489
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2,890,980 2,278,882 6,000,302 4,330,288
Interest income 115,773 48,865 152,770 95,425
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Net loss for the
period (1,902,187) (731,545) (4,106,290) (1,858,140)
Deficit, beginning
of period (16,982,515) (12,829,900) (14,778,412) (11,703,305)
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Deficit, end of
period $(18,884,702) $(13,561,445) $(18,884,702) $(13,561,445)
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Net loss per
common share
Basic and fully
diluted $ (0.04) $ (0.02) $ (0.10) $ (0.05)
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Weighted average
number of common
shares outstanding
Basic and fully
diluted 45,748,373 39,386,286 42,711,255 39,324,289
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ChondroGene Limited
Consolidated Statements of Cash Flows
Amounts in Canadian dollars "Unaudited"
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Three months Three months Six months Six months
ended ended ended ended
June 30 June 30 June 30 June 30
2006 2005 2006 2005
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Cash flows provided
by (used in):
Operations:
Net loss for
the period $ (1,902,187) $ (731,545) $ (4,106,290) $ (1,858,140)
Items therein not
requiring cash
Stock based
compensation 182,975 145,604 296,407 319,489
Amortization of
capital assets 99,054 90,201 191,528 166,523
Amortization of
intellectual
property 110,537 110,538 221,074 221,073
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(1,509,621) (385,202) (3,397,281) (1,151,055)
Changes in non-
cash working
capital:
Accounts
receivable 122,410 (10,919) 1,299,836 5,479,387
Investment tax
credit recoverable - - 658,022 -
Prepaid expenses
and deposits (51,328) (170,993) (29,170) (49,955)
Accounts payable
and accrued
liabilities (314,774) 208,792 231,712 (598,104)
Deferred revenue (679,532) (679,118) (1,351,531) (1,351,596)
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(2,432,845) (1,037,440) (2,588,412) 2,328,677
Financing:
Net proceeds from
issue of capital
stock 23,940,120 112,542 24,025,139 117,042
Payments on long
term debt (34,326) (30,496) (67,652) (60,103)
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23,905,794 82,046 23,957,487 56,939
Investments:
Additions to
capital assets (100,154) (218,322) (235,898) (311,638)
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Increase (decrease)
in cash and cash
equivalents 21,372,795 (1,173,716) 21,133,177 2,073,978
Cash and cash
equivalents,
beginning of
period 4,441,264 9,629,564 4,680,882 6,381,870
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Cash and cash
equivalents,
end of period $ 25,814,059 $ 8,455,848 $ 25,814,059 $ 8,455,848
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ChondroGene Limited