VANCOUVER, Aug. 10 /PRNewswire-FirstCall/ - Chemokine Therapeutics Corp., a biotechnology company developing chemokine-based therapies to treat cancer, blood disorders and vascular diseases, today announced the financial and operating results of the second quarter ended June 30, 2006.
Second Quarter Highlights: - Achievement of critical milestone with the commencement of the CTCE-9908 phase Ib/II clinical trial under which the dosing of the first cancer patient was announced May 2, 2006; - Continuation of a three stage phase Ib clinical study for CTCE-0214 to enable the Company to evaluate the safety, pharmacodynamics and pharmacokinetic profile of CTCE-0214 as a single dose and a multi-dose immune system booster, and in combination with granulocyte colony stimulating factor (G-CSF); - The re-acquisition of the CTCE-0214 option and first right of refusal on all our other products from Pharmaceutical Product Development, Inc., enabling the Company to add further value to this program by continuing to develop CTCE-0214 while maintaining full control of its other products for potential licensing to other companies; - Strengthening of the Company’s management team with the appointment of Dr. Guy Ely to serve as Chief Medical Officer, who will be responsible for overseeing Chemokine’s overall clinical development program and regulatory filings; - Demonstration in an animal model that CTCE-0324 enhances the survival of endothelial cells (essential components of existing blood vessels), stimulates the differentiation of individual endothelial cells into coordinated tube-like structures (mini blood vessels), and induces new blood vessels to sprout from pre-existing vessels using cell culture systems; and - Announcement of an agreement with the Fred Hutchinson Cancer Research Center in Seattle, Washington to study the potential of CTCE-0214 to accelerate the repopulation of stem cells to the bone marrow from human umbilical cord blood.
“With our two lead compounds in clinical trials, Chemokine continues to advance our core programs while building on our product pipeline. In addition, our recent collaborations with prestigious institutions studying our drug candidates, as well as key management and board additions, demonstrate the interest surrounding the potential of chemokine-based therapies,” stated Dr. Hassan Salari, Chief Executive Officer and President of Chemokine Therapeutics.
Financial Results - Unaudited (All amounts in U.S. dollars and in accordance with U.S. GAAP unless otherwise specified)
The Company incurred a net loss of $1,701,685 ($0.04 per share) during the three months ended June 30, 2006 compared to a net loss of $834,648 ($0.03 per share) during the same period in 2005. The increase in net loss was principally due to the increase in research and development expenses and general and administrative expenses as described below.
Research and development expenses were $1,015,108 during the three months ended June 30, 2006, compared to $614,257 for the three months ended June 30, 2005. The increase in research and development expenses in the current period was primarily attributable to the increase in clinical trial costs for Chemokine’s two lead compounds CTCE-0214 and CTCE-9908. Research and development expenses in the quarter also included preclinical and regulatory expenses and research staff salaries, as well as a $100,000 payment to PPDI to re-acquire the rights to the Company’s CTCE-0214 compound. During the quarter, the Company continued dosing subjects under an ongoing, three stage, phase Ib clinical trial for CTCE-0214 which began in December 2005. In addition, Chemokine commenced the phase Ib/II clinical trial for CTCE-9908 in cancer patients.
The Company recorded general and administrative expenses of $1,058,947 for the three months ended June 30, 2006, compared to $439,851 for the comparative period in 2005. General and administrative expenses consisted primarily of salaries, legal and accounting services, investor relations, office expenses, patent filing costs and business development. Also included in general and administrative expenses in the current quarter is a $237,600 fee paid to Pharmaceutical Product Development, Inc (“PPDI”) to facilitate the sale of their common shares to third-party investors subsequent to PPDI’s conversion of its 2,000,000 convertible preferred shares into 2,000,000 common shares. This transaction was part of an agreement we entered into with PPDI on April 12, 2006 to re-acquire the licensing rights to Chemokine’s compound CTCE-0214. There are currently no preferred shares outstanding.
For the three months ended June 30, 2006, Chemokine recorded stock-based compensation expense of $37,584, compared to $91,932 for the three months ended June 30, 2005. We realized other income of $112,051 for the three months ended June 30, 2006, compared to $65,392 for the three months ended June 30, 2005. Other income consisted primarily of interest earned on cash balances and investments which benefited from increasing interest rates and slightly higher cash balances quarter over quarter.
As of June 30, 2006, the Company had funds available of $9,841,847. For the three months ended June 30, 2006, Chemokine used net cash of $1,748,659 in operating activities consisting primarily of the net loss for the period of $1,701,685. During the quarter, the exercise of warrants generated $674,156 in cash. FINANCIAL CHARTS FOLLOW Chemokine Therapeutics Corp. (A Development Stage Company) CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars) June 30, December 31, 2006 2005 -------------- -------------- (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 3,283,418 $ 3,719,163 Investments 6,558,429 2,627,760 Amounts receivable 93,354 33,214 Prepaid expense and deposits 102,395 154,969 -------------- -------------- TOTAL CURRENT ASSETS 10,037,596 6,535,106 PROPERTY AND EQUIPMENT 423,820 351,438 LICENSE 20,146 23,993 DUE FROM AFFILIATES - 91,783 -------------- -------------- $ 10,481,562 $ 7,002,320 -------------- -------------- -------------- -------------- LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 275,164 $ 253,199 Due to affiliates 138,117 - Current portion of capital lease obligation 12,531 11,648 -------------- -------------- TOTAL CURRENT LIABILITIES 425,812 264,847 CAPITAL LEASE OBLIGATION 15,679 21,157 -------------- -------------- 441,491 286,004 -------------- -------------- STOCKHOLDERS’ EQUITY PREFERRED STOCK Authorized - 6,000,000 voting, participating shares; par value $ 0.001 per share Issued and outstanding: June 30, 2006 - Nil; December 31, 2005 - 2,000,000 - 2,000 COMMON STOCK Authorized - 100,000,000 voting, participating shares; par value $ 0.001 per share Issued and outstanding: June 30, 2006 - 42,183,748; December 31, 2005 - 31,897,206 42,184 31,897 ADDITIONAL PAID-IN CAPITAL 30,845,505 23,717,965 (DEFICIT) ACCUMULATED DURING THE DEVELOPMENT STAGE (20,847,618) (17,035,546) -------------- -------------- 10,040,071 6,716,316 -------------- -------------- $ 10,481,562 $ 7,002,320 -------------- -------------- -------------- -------------- Chemokine Therapeutics Corp. (A Development Stage Company) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. dollars) (Unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2006 2005 2006 2005 --------------------------- --------------------------- REVENUE $ - $ 275,000 $ - $ 275,000 ------------- ------------- ------------- ------------- EXPENSES Research and development 1,015,108 614,257 2,436,116 1,474,201 General and administrative 1,058,947 439,851 1,689,652 1,285,870 Stock-based compensation 37,584 91,932 72,231 2,165 Amortization of license 1,923 1,924 3,847 3,847 Depreciation of property and equipment 38,697 7,875 74,430 11,408 Foreign exchange (gain) loss (338,523) 19,201 (302,952) 141,262 ------------- ------------- ------------- ------------- 1,813,736 1,175,040 3,973,324 2,918,753 ------------- ------------- ------------- ------------- OTHER INCOME 112,051 65,392 161,252 120,418 ------------- ------------- ------------- ------------- NET (LOSS) $ (1,701,685) $ (834,648) $ (3,812,072) $ (2,523,335) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- NET (LOSS) PER COMMON SHARE - FOR THE PERIOD - BASIC AND DILUTED $ (0.04) $ (0.03) $ (0.10) $ (0.08) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 40,988,420 31,789,641 37,043,990 31,372,002 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- About Chemokine Therapeutics Corp.
Chemokine Therapeutics is a product-focused biotechnology company developing drugs in the field of chemokines. Chemokines are a class of signaling proteins which play a critical role in the growth, differentiation and maturation of cells necessary for fighting infection, and stem cells, as well as tissue repair and regeneration. Chemokines also have an important role in cancer metastasis and growth. Chemokine Therapeutics is a leader in research in the field of chemokines and has several products in various stages of development. For more information, please visit the Company’s website at www.chemokine.net.
Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995: Statements in this document regarding managements’ future expectations, beliefs, goals, plans or prospects constitute forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “projects”, and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, those associated with the success of research and development programs, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company’s products, the availability of government and insurance reimbursements for the Company’s products, the strength of intellectual property, financing capability, the potential dilutive effects of any financing, reliance on subcontractors and key personnel and other risks detailed from time-to-time in the Company’s public disclosure documents and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. Forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
CONTACT: Elite Financial Communications Group, Chemokine Investor/Media Relations, Dodi Handy, President & CEO, Phone: (407)585-1080, E-mail: chkt@efcg.net
Chemokine Therapeutics Corp.
CONTACT: Elite Financial Communications Group, Chemokine Investor/MediaRelations, Dodi Handy, President & CEO, Phone: (407)585-1080, E-mail:chkt@efcg.net
