BURNABY, BC, April 3 /PRNewswire-FirstCall/ - Chromos Molecular Systems Inc. , a public biopharmaceutical company, today announced its fiscal results for the fiscal year ended December 31, 2005.
“Chromos has taken an important step towards becoming a product development company with the addition of two drug product candidates,” said Alistair Duncan, President and CEO of Chromos. “In 2005 we continued to grow our cell line engineering business through several new deals. We will use the revenue generated from licensing our proprietary platforms to support our drug development program and move our drug product candidates into the clinic.”
Important achievements included: - Established product development program by acquiring two monoclonal antibody drug candidates for the treatment of MS, acute thrombosis and other inflammatory diseases (through acquisition of Targeted Molecules Corporation completed January 2006). - Completed $2.5 million in financing transactions and initiated $6.0 million private placement ($6.0 million financing was completed in January 2006) - Expanded collaboration with Pfizer Inc. for cell line engineering and metabolic engineering. - Signed commercial license agreement with Pfizer Inc. for use of the ACE System in cell line engineering. - Formed strategic alliance with AppTec Laboratory Services, Inc. to jointly provide the biopharmaceutical industry with cell line engineering and contract manufacturing services. - Formed strategic alliance with SAFC Biosciences (Sigma-Aldrich Group) to jointly market Chromos’ ACE System for cell line engineering for protein production applications. - Signed first licensing agreement for REM technology with BD Biosciences, a segment of Becton, Dickinson and Company. Financial Highlights
The Company reported a net loss of $6,399,640 ($0.30 per common share) for the fiscal year ended December 31, 2005, compared to a net loss of $7,753,646 ($0.44 per common share) in fiscal 2004. Revenue for 2005 totaled $3,168,064, compared to $627,248 in fiscal 2004, which was generated primarily from collaborative research agreements and license fees.
Research and development expenses decreased to $3,839,689 in 2005 as compared to $4,089,497 in 2004. This decrease is primarily attributable to cost savings associated with the closing of the Company’s Seattle operations in March 2005. General and administrative expenses were $2,901,665 in 2005, an increase from $2,530,528 in 2004. This increase was related to increases in consulting fees related to financing and investor relations activities and personnel costs.
As at December 31, 2005, the Company’s balance sheet reflected available cash resources of $66,379, as compared to $1,557,552 at the end of 2004. On February 1, 2006, the Company announced the completion of the acquisition of Targeted Molecules Corporation and a related private placement with gross proceeds of $6.0 million.
About Chromos
Chromos is a biopharmaceutical company with two drug development programs focused on inflammatory diseases and thrombotic disorders. The Company’s lead program, CHR-1103, is a humanized monoclonal antibody being developed as a treatment for acute relapses associated with relapsing forms of multiple sclerosis (MS). Chromos generates revenue from its proprietary platforms - the ACE System and REM technology - to support its drug development programs. For more information about Chromos , visit our website at www.chromos.com.
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 Chromos (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 continued availability of capital to finance the Company’s activities; (ii) the Company’s limited cash position, (iii) the ability to successfully obtain proof of the effectiveness of the Company’s technology, (iv) the ability to complete and maintain corporate alliances relating to the development and commercialization of the Company’s technology; (v) the ability to obtain and enforce patent and other intellectual property protection for the Company’s technology; (vi) market acceptance of the Company’s technology; (vii) the competitive environment and impact of technological change; (viii) the Company’s ability to attract and retain employees to carry out its business plans and (ix) 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 Quarterly and Annual Reports to Shareholders.
FOR FURTHER INFORMATION Investor inquiries: Kathryn Hayashi, CA Vice President, Finance Tel: (604) 415-7132 Email: khayashi@chromos.com
Chromos Molecular Systems Inc.
CONTACT: Investor inquiries: Kathryn Hayashi, CA, Vice President, Finance,Tel: (604) 415-7132, Email: khayashi@chromos.com
