BASKING RIDGE, N.J., Nov. 21 /PRNewswire-FirstCall/ -- VioQuest Pharmaceuticals, Inc. , a New Jersey-based biopharmaceutical company focused on acquiring, developing and commercializing targeted cancer compounds, reported a loss from continuing operations of $911,000, or $0.02 per share, for the third quarter ended September 30, 2006, compared to a loss from continuing operations of $774,000, or $0.04 per share, for the same quarter of 2005. For the nine months ended September 30, 2006, the loss from continuing operations was $3.2 million or $0.08 per share, compared to a loss from continuing operations of $1.7 million or $0.10 per share, for the same period of 2005. The loss includes non-cash employee stock option charges of approximately $165,000 and $590,000 for the three and nine months ended September 30, 2006, respectively.
The loss was primarily attributed to higher research and development expenses as the Company advanced its clinical development programs, in addition to increased selling, general and administrative expenses. VioQuest expects to continue to incur losses associated with increased expenses from further advancing its clinical programs and expansion of its corporate infrastructure.
The Company made significant progress in the third quarter, achieving several key milestones.
-- VioQuest initiated dosing of first patients in two separate trials: VQD-002, triciribine phosphate (TCN-P), at MD Anderson Cancer Center for treatment of leukemia; and VQD-001, sodium stibogluconate (SSG), also at MD Anderson, for evaluation of solid tumors. -- Subsequent to the third quarter’s end, VioQuest completed a $4.0 million financing. In addition, the Company is exploring strategic alternatives for its Chiral Quest business, including a possible sale of that business. As a result, the Chiral Quest business has been treated as discontinued operations in the interim financial statements for the third quarter.
Daniel Greenleaf, VioQuest’s President and CEO, said, “We are very pleased with the progress we have made this quarter. We are particularly excited about the development progress we are making with VQD-002 and we believe that VQD-002 is the only compound in clinical development that is a specific inhibitor of phosphorylated Akt. Also known as protein kinase B, Akt is hyper-phosphorylated (and thereby over activated) in a high percentage of leukemia tumors and a wide range of solid tumors, including breast, ovarian, colorectal and pancreatic cancers that appear to be addicted to this enzyme.”
About VioQuest Pharmaceuticals, Inc.
VioQuest Pharmaceuticals, Inc. focuses on acquiring, developing, and commercializing targeted late preclinical and early clinical stage therapies with unique mechanisms of action for oncology, viral and autoimmune disorders. VioQuest has two targeted therapeutics in clinic trials: VQD-001, an inhibitor of specific protein tyrosine phosphatases, has shown compelling preclinical activity in both renal and melanoma cancers and VQD-002 which inhibits the phosphorylation of Akt which can be seen in abnormal levels in breast, ovarian, colorectal, pancreatic, and liquid cancers. VioQuest’s subsidiary Chiral Quest, Inc., a pioneer in asymmetric chemocatalysis and custom synthesis, offers its proprietary technology products to well-known pharmaceutical and fine chemical companies worldwide to improve their production efficiencies and, in some instances, to increase the overall safety and efficacy of the underlying drug.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest’s actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as anticipates, expects, plans, believes, intends, and similar words or phrases. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that VioQuest will receive any proceeds in connection with a sale or other disposition of its Chiral Quest division, that its ongoing clinical trials involving its product candidates will be successful, or that the FDA will approve VioQuest’s planned NDA submission relating to VQD-001 for the treatment of leishmaniasis, and even if approved, there is no assurance that VioQuest will be able to successfully commercialize VQD-001 for the treatment of leishmaniasis or any other indication. Other risks and uncertainties include the possibility that the results of clinical trials will not support VioQuest’s claims, the possibility that VioQuest’s development efforts relating to its product candidates, including VQD-001 and VQD-002, will not be successful, the inability to obtain regulatory approval of VioQuest’s product candidates, VioQuest’s reliance on third-party researchers to develop its product candidates, its lack of experience in developing and commercializing pharmaceutical products, and the possibility that its licenses to develop and commercialize its product candidates may be terminated. Additional risks are described in VioQuest’s Annual Report on Form 10-KSB for the year ended December 31, 2005.VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
VIOQUEST PHARMACEUTICALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2006 (UNAUDITED) AND DECEMBER 31, 2005 September 30, December 31, 2006 2005 (Unaudited) (Note 1A) ASSETS CURRENT ASSETS Cash and cash equivalents $823,129 $6,021,399 Prepaid clinical research organization costs 180,238 - Other current assets 89,054 9,945 Current assets associated with discontinued operations (See Note 2) 1,269,445 892,092 Total Current Assets 2,361,866 6,923,436 NON-CURRENT ASSETS ASSOCIATED WITH DISCONTINUED OPERATIONS (See Note 2) 1,336,484 1,424,883 PROPERTY AND EQUIPMENT, NET 31,191 21,276 SECURITY DEPOSITS 9,708 9,708 TOTAL ASSETS $3,739,249 $8,379,303 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $612,044 $275,077 Accrued compensation 213,609 346,833 Accrued expenses 267,405 48,167 Note payable - Paramount BioCapital (See Note 4) 264,623 264,623 Current liabilities associated with discontinued operations (See Note 2) 769,669 1,105,594 TOTAL LIABILITIES 2,127,350 2,040,294 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Preferred stock; $0.001 par value: 10,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2006 and December 31, 2005 - - Common stock; $0.001 par value: 100,000,000 shares authorized at September 30, 2006 and December 31, 2005, 46,729,519 shares issued and outstanding at September 30, 2006 and December 31, 2005 46,729 46,729 Additional paid-in capital 27,399,677 26,561,672 Accumulated deficit (25,834,507) (20,269,392) Total Stockholders’ Equity 1,611,899 6,339,009 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $3,739,249 $8,379,303 VIOQUEST PHARMACEUTICALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 (UNAUDITED) For the For the For the For the Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September September September September 30, 30, 30, 30, 2006 2005 2006 2005 REVENUE - - - - COST OF GOODS SOLD - - - - GROSS PROFIT - - - - OPERATING EXPENSES Management and consulting fees $167,379 $212,159 $171,707 $243,184 Research and development 273,876 - 933,599 - Selling, general and administrative 504,848 564,225 2,172,519 1,459,607 Depreciation and amortization 1,268 525 3,804 2,149 Total Operating Expenses 947,371 776,909 3,281,629 1,704,940 LOSS FROM CONTINUING OPERATIONS (947,371) (776,909) (3,281,629) (1,704,940) INTEREST INCOME, NET 36,246 2,463 85,361 14,203 LOSS FROM CONTINUING OPERATIONS (911,125) (774,446) (3,196,268) (1,690,737) LOSS FROM DISCONTINUED OPERATIONS (973,892) (843,215) (2,368,847) (2,372,397) NET LOSS $(1,885,017) $(1,617,661) $(5,565,115) $(4,063,134) NET LOSS PER COMMON SHARE: CONTINUING OPERATIONS $(0.02) $(0.04) $(0.08) $(0.10) DISCONTINUED OPERATIONS (0.03) (0.05) (0.07) (0.13) BASIC LOSS PER SHARE $(0.05) $(0.09) $(0.15) $(0.23) WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED 38,165,124 17,852,100 38,165,124 17,852,100 Contact: Diane Perry at VioQuest Pharmaceuticals, Inc. Vice President, Corporate Communications & Investor Relations 908-766-4400 / 917-834-7526 / diane.perry@vioquestpharm.com
VioQuest Pharmaceuticals, Inc.
CONTACT: Diane Perry, Vice President, Corporate Communications & InvestorRelations, VioQuest Pharmaceuticals, Inc., +1-908-766-4400, or+1-917-834-7526, diane.perry@vioquestpharm.com
