SAN DIEGO, CA, Nov. 7 /PRNewswire-FirstCall/ - Stressgen Biotechnologies ("The Company") announced today financial results for the third quarter ended September 30, 2005. All amounts, unless specified otherwise, are in Canadian dollars.
Stressgen reported a net loss from continuing operations of $5.7 million, or $0.08 (US$0.07) per share, for the three months ended September 30, 2005, compared to a net loss from continuing operations of $8.4 million, or $0.12 (US$0.09) per share, for the same period in 2004.
For the nine months ended September 30, 2005, the Company reported a net loss from continuing operations of $23.2 million, or $0.32 (US$0.26) per share, compared to a net loss from continuing operations of $22.2 million, or $0.31 (US$0.23) per share, for the same period in 2004. The Company had cash, cash equivalents and short-term investments of $5.8 million as of September 30, 2005. As announced on November 1, 2005, the Company raised gross proceeds of $2.6 million.
Stressgen Highlights: --------------------- - Completed equity financing totaling gross proceeds of $2.6 million. - Implemented additional restructuring to focus corporate resources on the advancement of HspE7. - Defeated Antigenics' challenge to European patent. - Granted U.S. patent covering therapeutic products to treat Hepatitis B virus.
"The Company has achieved important financial and corporate milestones this past quarter," commented Gregory M. McKee, President and Chief Executive Officer at Stressgen. "As part of our new strategic direction, we are implementing several additional financial and program initiatives including corporate partnering efforts, non-dilutive financial contribution plans and others that we believe can provide a solid foundation for our future corporate and program development."
About Stressgen Biotechnologies Corporation
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Stressgen, a biopharmaceutical company, focuses on the discovery, development and commercialization of innovative therapeutic vaccines for the treatment of infectious diseases and cancer. The corporation is publicly traded on the Toronto Stock Exchange under the symbol SSB.
About HspE7, Lead Product Candidate
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HspE7 is a novel CoVal(TM) fusion therapeutic vaccine designed for the treatment of diseases caused by the human papillomavirus (HPV), one of the most common causes of sexually transmitted diseases in the world. An estimated 80% of sexually active men and women are infected by genital HPV at some point in their lives. Approximately 5.5 million new sexually transmitted HPV infections are reported in the U.S. each year. At least 20 million people in the U.S. are already infected. HPV infection can result in diseases including internal and external genital warts and precancerous conditions, such as cervical and anal dysplasia. Precancerous HPV-related conditions can progress into life-threatening diseases, including cervical, anal, and head and neck cancers.
About CoVal(TM) Fusion Proteins
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Stressgen capitalizes upon the immunostimulatory powers of heat shock proteins utilizing recombinant technology to fuse, or covalently link, a stress protein with a protein antigen to create a single hybrid protein designed to trigger the immune system to recognize that antigen. For more information about CoVal(TM) fusion technology, or Stressgen, please visit the website located at www.stressgen.com.
This press release contains forward-looking statements regarding our intention to pursue initiatives focused on the development of HspE7. Actual results could be materially different from those implied by these forward- looking statements due to factors over which we have limited control, including but not limited to our ability to continue as a going concern, our ability to enter into corporate partnering relationships (and the effects and terms of those relationships), difficulties inherent in the manufacture of commercial-grade clinical supplies, our ability to meet regulatory approval requirements, the development of our potential products, including HspE7, not proceeding as planned, clinical trial uncertainties, the risk that, if successfully developed, HspE7 may not be commercially successful, the effect of our limited cash resources. Please refer to our filings with Canadian securities regulators for more information on these and other applicable risks. We assume no obligation and expressly disclaim any duty to update any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of subsequent events.
Donna Slade Director, Investor Relations 6055 Lusk Boulevard San Diego, CA USA 92121 Tel: 858/202-4900 Fax: 858/450-6849 dslade@stressgen.com (financial information attached) CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (Canadian dollars) (In thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, -------------------- -------------------- 2005 2004 2005 2004 --------- --------- --------- --------- Revenue: Collaborative R&D revenue $ 160 $ 174 $ 489 $ 537 Operating expenses: Research and development 4,874 6,422 18,683 17,331 Selling, general and administrative 1,021 1,395 4,858 5,232 Restructuring - - 530 - --------- --------- --------- --------- 5,895 7,817 24,071 22,563 --------- --------- --------- --------- Operating loss (5,735) (7,643) (23,582) (22,026) Other income (expense): Interest and other income (expense), net 290 226 932 477 Foreign exchange (loss) gain, net (237) (950) (552) (665) --------- --------- --------- --------- 53 (724) 380 (188) --------- --------- --------- --------- Net loss from continuing operations $ (5,682) $ (8,367) $(23,202) $(22,214) Net income from discontinued operations $ - $ 410 $ 7,460 $ 1,607 --------- --------- --------- --------- Net loss $ (5,682) $ (7,957) $(15,742) $(20,607) --------- --------- --------- --------- Basic and diluted (loss) income per common share (a): From continuing operations $ (0.08) $ (0.12) $ (0.32) $ (0.31) From discontinued operations $ - $ 0.01 $ 0.10 $ 0.03 --------- --------- --------- --------- $ (0.08) $ (0.11) $ (0.22) $ (0.28) --------- --------- --------- --------- --------- --------- --------- --------- Weighted average common shares outstanding (in thousands) 72,506 72,506 72,506 72,504 (a) Certain per share amounts will not recalculate exactly due to rounding CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited) (Canadian dollars in thousands) September December 30, 2005 31, 2004 ---------- ---------- Cash and short-term investments, continuing operations $ 5,796 $ 21,578 Cash and short-term investments, discontinued operations - 1,066 Total assets, continuing operations 8,559 27,727 Total assets, discontinued operations - 2,447 Long-term notes payable, continuing operations - 145 Stockholders' equity, continuing operations 4,126 19,551 Total shares outstanding (in thousands) 72,506 72,506
Stressgen Biotechnologies Corp.CONTACT: Donna Slade, Director, Investor Relations, 6055 Lusk Boulevard,San Diego, CA USA 92121, Tel: (858) 202-4900, Fax: (858) 450-6849,dslade@stressgen.com
