BURNABY, BC , May 14 /PRNewswire-FirstCall/ -- Chromos Molecular Systems Inc. ("Chromos"; TSX: CHR), a global leader in the development and commercialization of chromosome-based technologies, today announced financial results and operational highlights for the first quarter ended March 31, 2004.
First Quarter Operating Highlights - Signed license agreement with AviGenics Inc. of Georgia, USA, to generate transgenic avians for the development of protein therapeutics - Further optimized the ACE System for use in biopharmaceutical process development - Extended collaboration with leading contract manufacturer, Lonza Biologics PLC of Slough, England
"Working in collaboration with our industry partners during this quarter, we made tangible progress in our cellular protein production programs," said Alistair Duncan, President and CEO of Chromos. "The recent progress achieved puts us firmly on track to hit a number of critical milestones in the coming quarters. These important commercial and research alliances in the cellular protein production field will further confirm the commercial viability of our technology, and enable us to secure additional partnerships. Consistent with our business strategy to steadily progress our gene-based cell therapy initiatives over the longer term, the revenue from these partnerships will support and enable these efforts."
Financial Highlights
The Company's net loss for the quarter ended March 31, 2004, was $1.5 million, or $0.09 per common share, compared to $1.6 million, or $0.10 per common share, for the same period in the preceding fiscal year. Revenue for the first quarter decreased to $135,482 compared to $145,337 for the same quarter in 2003. This decrease is attributable to decreased interest earned on lower cash and investment balances, which was offset by an increase in licensing revenue.
Research and development expenses decreased to $728,025 for the quarter ended March 31, 2004, compared to $781,700 in the same quarter of 2003. This decrease relates primarily to reduced contract research costs and reduced consultant costs in support of the Company's strategy to focus on accelerating its cellular protein production programs internally. General and administrative expenses decreased to $534,542 compared to $559,346 for the same quarter of 2003. This decrease is mainly due to ongoing cash management initiatives.
As at March 31, 2004, the Company had available cash resources in excess of $6.6 million. Management believes that these resources are sufficient to finance operations and capital needs into the second quarter of 2005.
About Chromos
Chromos Molecular Systems Inc. is a public, Canadian biotechnology company leading the development of innovative therapies using a proprietary gene delivery and expression system for the production of therapeutic proteins and gene-based cell therapies. Chromos is achieving this objective with a unique mammalian chromosome technology platform from which multiple product candidates can be developed.
Chromos' technology, referred to as the ACE System, is a unique and powerful vehicle for transferring genes into cells for subsequent expression of proteins. The ACE System demonstrates a significant improvement in cell engineering technology and gene expression, namely, unparalleled speed in engineering cell lines for protein production, high-level expression of proteins and long-term stability. These features make the ACE System well suited for the production and manufacture of biopharmaceuticals because it addresses the inadequacies of current platforms.
Risks and Uncertainties
Certain of the statements contained in this press release are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
To the extent possible, management implements strategies to reduce or mitigate the risks and uncertainties associated with the Company's operations. Operating risks include (i) the ability to successfully obtain proof of the effectiveness of the ACE System; (ii) the ability to complete and maintain corporate alliances relating to the development and commercialization of the Company's technology; (iii) the ability to obtain and enforce patent and other intellectual property protection for the Company's technology; (iv) market acceptance of the Company's technology; (v) the competitive environment and impact of technological change; (vi) the continued availability of capital to finance the Company's activities; (vii) the Company's ability to attract and retain employees to carry out its business plans and (viii) the timely development and commercialization of any technology or products that are contingent on the completion and maintenance of corporate alliances with third parties. Further details on Chromos' operating risks can be found in the Company's Annual Report to Shareholders.
(R) is a registered trademark of Chromos Molecular Systems Inc. FOR FURTHER INFORMATION PLEASE CONTACT: Helen Zeitler Director, Investor Relations & Communications Tel: (604) 415-7127 Email: hzeitler@chromos.com Website: http://www.chromos.com/
Chromos Molecular Systems Inc.CONTACT: Helen Zeitler, Director, Investor Relations & Communications,Tel: (604) 415-7127, Email: hzeitler@chromos.com, Website: http://www.chromos.com/
