SAN DIEGO, CA, March 14 /PRNewswire-FirstCall/ - Nventa Biopharmaceuticals Corporation announced today financial results for the year ended December 31, 2006. All amounts, unless specified otherwise, are in Canadian dollars.
Nventa reported a net loss from continuing operations of $10.1 million or $0.12 (US$0.11) per share, for the year ended December 31, 2006, compared to a net loss from continuing operations of $27.1 million, or $0.37 (US$0.31) per share, for the same period in 2005. The Company had cash and cash equivalents related to continuing operations of $3.0 million as of December 31, 2006. During January 2007, the Company completed an equity offering resulting in gross proceeds of $16.2 million.
Gregory M. McKee, President and Chief Executive Officer at Nventa commented on the year: "2006 was a year of significant achievement at Nventa. As a result of encouraging preclinical data on our lead program, positive interactions with the U.S. Food and Drug Administration (FDA), and successful fundraising, we are now poised to advance our lead candidate into clinical development." Mr. McKee continued, "If all of our corporate and clinical initiatives continue to go well, 2007 promises to be a year that should build additional shareholder value."
2006 AND RECENT NVENTA ACHIEVEMENTS ----------------------------------- Corporate and Financial Achievements: - Received $9 million in non-dilutive capital from corporate transaction - Strengthened Board of Directors, adding Robert Rieder and electing Dr. Jay Short Chairman - Hired Peter Emtage, Ph.D. as new head of Research and Development - Decreased overall spend by over 62 percent as a result of corporate restructuring and implementation of refocused product development strategy - Created new corporate identity coinciding with new corporate vision and clinical strategy - Raised $16.2 million in additional capital Progress on Lead Candidate HspE7: - Presented twelve-month development strategy for new formulation: HspE7 plus adjuvant - Signed Supply Agreement for proprietary adjuvant that activates innate immunity and targets the Toll-like receptor 3 (TLR-3) pathway - Presented preclinical data demonstrating greater potency and specific activation of the immune response with HspE7 in combination with adjuvants - Announced clinical trial data with original HspE7 demonstrating complete response or marked improvement in 81 percent of patients with genital warts - Announced clinical trial data with original HspE7 from NCI-sponsored study in patients with cervical dysplasia showing 78 percent complete response or reduction of lesion size by more than fifty percent - Announced positive clinical trial data with original HspE7 in patients with HIV published in the journal AIDS - Provided clinical development strategy update and positive outcome from interactions with the FDA outlining strategy for development of new formulation of HspE7 plus adjuvant Strengthened Intellectual Property Portfolio: - Granted European patent covering CoVal(TM) fusion proteins to treat influenza - Granted two European patents covering HspE7 for HPV-related diseases About Nventa Biopharmaceuticals Corporation: --------------------------------------------
Nventa is developing innovative therapeutics for the treatment of viral infections and cancer, with a focus on diseases caused by the human papillomavirus (HPV). The Company is publicly traded on the Toronto Stock Exchange under the symbol NVN. For more information about Nventa Biopharmaceuticals Corporation, please visit the Company's website located at www.nventacorp.com.
The Audit Committee of the Company has reviewed and approved of the contents of this Press Release. Summary financials are attached below. The full financial statements and MD&A for the year ended December 31, 2006, can be found on SEDAR at http://www.sedar.com.
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking information under applicable Canadian securities legislation or forward-looking statements within the meaning of the Unites States Private Securities Litigation Reform Act of 1995. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "estimate", "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases are intended to identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different.
Forward-looking statements or information in this press release include, but are not limited to, statements or information concerning: advancing our lead candidate into clinical development and building significant shareholder value in 2007.
Such forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed or implied by such forward-looking statements or information. Such factors include, among others, our ability to continue as a going concern; our need for capital; risks associated with requirements for approvals by government agencies such as the FDA before products can be tested in clinical trials and ultimately marketed; the possibility that such government agency approvals will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to advance development and/or market the product successfully; risks associated with the requirement that a drug be found safe and effective after extensive clinical trials and the possibility that the results of such trials, if commenced and completed, will not establish the safety or efficacy of our products; our dependence on suppliers, collaborative partners and other third parties and the prospects and timing for negotiating supply agreements, corporate collaborations or licensing arrangements; our ability to attract and retain key personnel; our ability to protect and practice our intellectual property; the risk that competitors may develop and market drugs that are less expensive, more effective or safer than ours; and other factors as described in detail in our filings with the Canadian securities regulatory authorities at www.sedar.com. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements and information, which are qualified in their entirety by this cautionary statement.
Assumptions underlying our expectations regarding forward-looking statements or information contained in this press release include, among others, that we will raise enough capital, on reasonable terms and in a timely manner; that we will retain our key personnel; that we will obtain the necessary regulatory approvals in a timely manner; that enough HspE7 will be available to conduct planned trials; that we will be able to procure the necessary amount of adjuvant to conduct planned trials; that if conducted, the results of our Phase I trial will be favorable; that we will obtain timely approval from IRB; that the results from additional pre-clinical work, if any, will be consistent with the results we have already obtained; that a sufficient number of patients will be available to conduct a successful clinical trial; that sufficient data will be generated to support an IND.
In the event that any of these assumptions prove to be incorrect, or in the event that we are impacted by any of the risks identified above, we may not be able to continue in our business as planned, or at all.
For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with Canadian securities regulatory authorities, including our 2006 Annual Information Form filed on SEDAR at http://www.sedar.com. Historical filings relating to the Company prior to the completion of the Company's March 23, 2006 corporate reorganization, including Stressgen's 2005 Annual Information Form dated March 16, 2006 may be reviewed on SEDAR at http://www.sedar.com under the SEDAR profile GVIC Publications Ltd.
All forward-looking statements and information made herein are based on our current expectations as of the date hereof and we disclaim any intention or obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (Canadian dollars) (In thousands, except per share amounts) For the year ended December 31, ----------------------- 2006 2005 ---------- ---------- Revenue: Collaborative R&D revenue $ 621 $ 645 Operating expenses: Research and development 7,351 20,766 Selling, general and administrative 3,565 5,891 Restructuring - 1,370 ---------- ---------- 10,916 28,027 ---------- ---------- Operating loss (10,295) (27,382) Other income (expense): Interest and other income, net 138 1,092 Net foreign exchange gain (loss) 90 (560) Interest expense - (37) ---------- ---------- 228 495 ---------- ---------- Net loss from continuing operations before tax expense (10,067) (26,887) Income tax expense - (187) ---------- ---------- Net loss from continuing operations (10,067) (27,074) Net income from discontinued operations - 7,460 ---------- ---------- Net loss $ (10,067) $ (19,614) ---------- ---------- ---------- ---------- Basic and diluted (loss) income per common share From continuing operations $ (0.12) $ (0.37) From discontinued operations $ - $ 0.10 ---------- ---------- $ (0.12) $ (0.27) ---------- ---------- ---------- ---------- Weighted average common shares outstanding (in thousands) 83,440 73,928 ---------- ---------- ---------- ---------- CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited) (Canadian dollars in thousands) December 31, December 31, 2006 2005 ---------- ---------- Cash and short-term investments $ 2,972 4,361 Total assets 4,619 7,598 Stockholders' equity 2,303 3,521 Total shares outstanding (in thousands) 83,669 83,036
CONTACT: Gregory McKee, President and Chief Executive Officer, 6055 Lusk Boulevard, San Diego, CA, USA, 92121, Dir: (858) 202-4940, gmckee@nventacorp.com; Donna Slade, Director, Investor Relations, 6055 Lusk Boulevard, San Diego, CA, USA, 92121, Dir: (858) 202-4945, dslade@nventacorp.com
Nventa Biopharmaceuticals CorporationCONTACT: Gregory McKee, President and Chief Executive Officer, 6055 LuskBoulevard, San Diego, CA, USA, 92121, Dir: (858) 202-4940,gmckee@nventacorp.com; Donna Slade, Director, Investor Relations, 6055 LuskBoulevard, San Diego, CA, USA, 92121, Dir: (858) 202-4945,dslade@nventacorp.com
