PALO ALTO, Calif., Nov. 21 /PRNewswire-FirstCall/ -- Avicena Group, Inc. , a late stage biotechnology company focused on commercializing its proprietary cellular energy modulation technology, today announced third quarter 2006 financial results for the period ending September 30, 2006.
Net revenue for the third quarter 2006 increased to $132,000, as compared to $82,000 in the corresponding 2005 period. This represented a year-over- year increase of $51,000 (62%) largely attributed to strong demand from Estee Lauder for Avicena’s proprietary cellular energy-based skin care ingredients.
Net loss for the third quarter of 2006 was $2.06 million, or $0.04 per basic and diluted share, as compared to a loss of $0.56 million, or $0.03 per basic and diluted share, for the third quarter of 2005. This represents a year-over-year increase of approximately $1.5 million primarily resulting from the accounting treatment for warrants issued during the year and expanded research and development activities advancing several proprietary drug candidates into early and late stage clinical trials.
For the nine month period ended September 30, 2006, net revenue was $313,000 as compared to $385,000 in the nine month period ending September 30, 2005, a decrease of $72,000 (19%).
The net loss for the nine months ended September 30, 2006 was $4.53 million, or $0.09 per basic and diluted share, as compared to $1.93 million, or $0.10 per basic and diluted share, in the prior year nine month period.
Belinda Tsao-Nivaggioli, Avicena’s Chief Executive Officer, said, “The quarterly results are in line with our expectations. We continue to make progress as we advance several of our pharmaceutical candidates into later-stage clinical trials. In addition, we continue to lay the foundation to fully leverage our dermaceutical patent portfolio and to further expand our near term revenue opportunities.”
RECENT CORPORATE ACCOMPLISHMENTS:
Avicena Completes First Stage Patient Enrollment for ALS Phase II Trial -- Avicena announced the completion of patient enrollment for the first stage of its Phase II trial evaluating the company’s proprietary drug candidate, ALS- 08, for the treatment of amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease). Designed as a two-stage Phase II trial, this study will assess the efficacy, safety, and tolerability of: 1) ALS-08 in combination with minocycline; and 2) ALS-08 in conjunction with celecoxib (a COX-2 inhibitor). Enrollment was completed by the lead investigator, Paul H. Gordon, M.D., of the Eleanor and Lou Gehrig MDA/ALS Research Center at Columbia University in New York.
Avicena Completes Clinical Trials for Nurigene(TM) -- Clinical results for Nurigene(TM), a therapeutic skin care regimen, demonstrated significant improvements in skin cell turnover rate, skin firmness and elasticity. Additional results also showed a significant improvement in the skin’s ability to retain moisture. Subjects also reported a reduction in fine lines and wrinkles as well as an increase in skin softness and smoothness.
ABOUT THE AVICENA GROUP
The Avicena Group, Inc. is a late stage, revenue generating 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 Amyotrophic Lateral Sclerosis (ALS), or Lou Gehrig’s disease. Near term, Avicena intends to initiate both a Phase III trial in Huntington’s disease and a Phase III trial in Parkinson’s disease. Avicena’s science is well established and its products are safe and well tolerated. Avicena’s clinical programs are largely funded by government and non-profit organizations. Based on its cellular energy technology, Avicena also develops and sells proprietary 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” in the company’s prospectus 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 early state 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 The Avicena Group) Stephanie Carrington / John Quirk (investors) (646) 536-7017 / 7029 scarrington@theruthgroup.comjquirk@theruthgroup.com Janine McCargo (media) (646) 536-7033 jmccargo@theruthgroup.com
Avicena Group, Inc.
CONTACT: Investors: Stephanie Carrington, +1-646-536-7017,scarrington@theruthgroup.com, or John Quirk, +1-646-536-7029,jquirk@theruthgroup.com, or Media: Janine McCargo, +1-646-536-7033,jmccargo@theruthgroup.com, all of The Ruth Group, for The Avicena Group
