PALO ALTO, Calif., May 21 /PRNewswire-FirstCall/ -- Avicena Group, Inc. , a late stage biotechnology company focused on commercializing its proprietary cellular energy modulation technology, today announced financial results for the first quarter ending March 31, 2007.
Net revenue for first quarter of 2007 was $144,619 compared to $91,428 in the first quarter of 2006. This represented a year-over-year increase of $53,191 based on stronger sales to Estee Lauder.
Net loss applicable to common stock for the first quarter of 2007 was $565,518, or $0.01 per basic and diluted share, compared to a net loss of $785,081, or $0.02 per basic and diluted share, for first quarter of 2006. Year-over-year net loss narrowed by $219,563, or $0.01 per basic and diluted share, based on approximately $1.195 million booked in first quarter 2007 as an unrealized gain on change in fair value of warrants.
Belinda Tsao-Nivaggioli, Avicena's Chief Executive Officer, said, "In the first quarter of 2007 we continued to generate revenue from our dermaceutical business, which helps offset expenses and cash burn. Through this business model we have consistently improved our cash position.
"Also in the first quarter of 2007, we reached a new record of accomplishment within our ongoing collaboration with the NIH. As previously announced, the NIH initiated enrollment in its Phase III clinical trial to evaluate the potential of our drug, PD-02, to slow the progression of Parkinson's disease. The selection of PD-02 for one of the largest Parkinson's trials marks a significant milestone in our clinical development pathway and further solidifies the strength of our relationship with the NIH."
FIRST QUARTER 2007 KEY CORPORATE ACCOMPLISHMENTS: March 2007
Avicena Announces Patient Enrollment in National Institutes of Health (NIH) Phase III Parkinson's Disease Trial -- Avicena announced that its National Institutes of Health (NIH) collaborator and sponsor, initiated patient enrollment in a Phase III efficacy trial of PD-02, Avicena's patented lead Parkinson's disease (PD) drug candidate. One of the largest Parkinson's disease trials ever conducted, this 5-year study is expected to enroll over 1,700 patients at over 50 sites in the United States and Canada.
Under terms of the collaboration, Avicena will have rights to the study's findings for an NDA (New Drug Application) submission to the FDA (Food and Drug Administration) for the approval to market PD-02.
Avicena Receives Additional U.S. Patent Claim Covering Use of Creatine or Creatine Compounds for Skin Preservation -- Avicena announced that the United States Patent and Trademark Office (USPTO) has issued U.S. Patent No. 7,186,754, entitled, "Use of Creatine or Creatine Compounds for Skin Preservation," on March 6, 2007. This patent enhances the Company's skin care patent portfolio, which also contains U.S. Patent No. 6,242,491, with claims directed to methods for treating skin damage resulting from sun radiation, stress, fatigue or free radicals by administering creatine.
February 2007
Avicena Appoints Dr. Uri Sagman to Board of Directors -- Avicena announced the appointment of Uri Sagman, M.D, FRCPC, to the Company's Board of Directors. Dr. Sagman is co-founder of Canadian nanomedicine company C Sixty, Inc.; founder and chairman of GRN Capital Inc., a Toronto-based financial services corporation; chairman of the academic research organization GRN Health International; and co-founder and Executive Director of the Canadian NanoBusiness Alliance. Dr. Sagman is trained as a medical oncologist and studied at the McGill University, The University of Calgary, The University of Toronto and Oxford University.
Avicena Completes Dose-Escalation Portion of Chronic Toxicology Study of Parkinson's Disease Drug Candidate PD-02 -- Avicena announced the completion of the dose-escalating portion of a chronic toxicology study of PD-02, its lead Parkinson's disease drug candidate. Results, which demonstrated that PD- 02 is safe and well-tolerated, will allow Avicena to proceed with patient enrollment in a Phase III Parkinson's disease study.
ABOUT AVICENA
Avicena Group, Inc. is a late stage biotechnology company focused on developing products based on its proprietary understanding of the regulation of cellular energy processes. The company's core technologies, supported by a robust IP portfolio, have broad applications in both pharmaceuticals and dermaceuticals. Avicena's pharmaceutical program centers on rare neurological disorders (orphan diseases). The company is currently analyzing data from its Phase IIb/III trial in ALS. Near term, Avicena intends to initiate a Phase III trial in Huntington's disease to accompany the ongoing Phase III trial in Parkinson's disease. Avicena's science is well established and its products are safe and well tolerated. Unlike traditional biotechnology companies, Avicena's clinical programs are largely funded by government and non-profit organizations. Avicena presently derives revenue from the sale of proprietary dermaceutical ingredients to skin care manufacturers.
SAFE HARBOR
This release may contain forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements reflect, among other things, management's current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. See "Risk Factors" under "Item 6. Management's Discussion and Analysis of Financial Condition and Results of Operation" from our Annual Report on Form 10-KSB for the year ended December 31, 2006, and other descriptions in the company's public filings with the Securities and Exchange Commission for a discussion of such risks, including the company's need for additional funds, the company's dependence on a limited number of therapeutic compounds, the stage of the products the company is developing, uncertainties relating to clinical trials and regulatory reviews, competition and dependence on collaborative partners, the company's ability to avoid infringement of the patent rights of others, and the company's ability to obtain adequate patent protection and to enforce these rights. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Avicena does not undertake any obligation to update or review any such forward-looking information, whether as a result of new information, future events or otherwise.
Contact: The Ruth Group (on behalf of Avicena Group) Stephanie Carrington / Sara Ephraim (investors) (646) 536-7029 / 7002 scarrington@theruthgroup.com / sephraim@theruthgroup.com Janine McCargo / Jason Rando (media) (646) 536-7033 / 7025 jmccargo@theruthgroup.com / jrando@theruthgroup.com
Avicena Group, Inc.CONTACT: media, Janine McCargo, jmccargo@theruthgroup.com, or Jason Rando,jrando@theruthgroup.com, +1-646-536-7033, ext. 7025, or investors,Stephanie Carrington, scarrington@theruthgroup.com, or Sara Ephraim,sephraim@theruthgroup.com, +1-646-536-7029, ext. 7002, all of The RuthGroup, all for Avicena Group
