News release via Canada NewsWire, Toronto 416-863-9350
Attention Business/Financial Editors:
Lorus Therapeutics reports second quarter results for fiscal year 2008
TORONTO, Jan. 8 /CNW/ - Lorus Therapeutics Inc. (Lorus), a
biopharmaceutical company specializing in the research and development of
pharmaceutical products and technologies for the management of cancer, today
reported financial results for the three months ended November 30, 2007.
Unless specified otherwise, all amounts are in Canadian dollars.
FINANCIAL RESULTS
Our loss from operations for the three months ended November 30, 2007 of
$3.0 million ($0.01 per share) was approximately equal to the net loss of
$3.1 million ($0.01 per share) during the same period in fiscal 2007. For the
six months ended November 30, 2007 our loss from operations, excluding the
gain associated with the Arrangement (as discussed below), decreased by 12% to
$5.1 million from $5.9 million in the same period last year.
On close of the Arrangement, in July 2007, the Company realized a gain on
the sale of the shares of Old Lorus in the amount of $6.3 million resulting in
net income for the six month period of $1.2 million ($0.01 per share).
Research and development expenses in the three months ended November 30,
2007 increased to $1.2 million from $1.1 million in the same period last year.
During the six months ended November 30, 2007 research and development costs
decreased to $2.0 million from $2.4 million in the same period last year. In
the three and six month periods ended November 30, 2007, R&D expenditures
increased by $387 thousand and $231 thousand, respectively, offset by a
decrease in amortization expense related to intangible assets of $262 thousand
and $655 thousand, respectively, over the same periods in the previous year.
These increases are primarily due to increased research and testing costs in
fiscal 2008 associated with the advancement of the Company's small molecule
program and clinical development costs. These increased costs are partially
offset by lower manufacturing and compliance/regulation costs in the current
year.
We utilized cash of $4.9 million in our operating activities in six-month
period ended November 30, 2007 compared with $4.4 million during the same
period in fiscal 2007 reflecting a reduction in payables. At November 30, 2007
we had cash and cash equivalents and marketable securities of $14.8 million
compared to $12.4 million at May 31, 2007.
General and administrative expenses totaled $1.1 million in the
three-month period ended November 30, 2007 compared to $1.4 million in same
period last year. For the six month period ended November 30, 2007, general
and administrative expense was $1.8 million compared with $2.2 million in the
same period last year. The decrease in general and administrative costs is the
result of staff reductions, and a continued focus on lowering costs in all
areas of the business. In the second quarter of fiscal 2007, the company
incurred costs related to the mutual separation agreement between the Company
and the then President and CEO. Such costs were not incurred in the current
period.
Interest income totaled $175 thousand in the three-month period ended
November 30, 2007 compared to $158 thousand in the same period last year and
$315 thousand for the six month period ended November 30, 2007 and
$225 thousand for the comparable period last year. The overall increase in
interest income in the current period is due to higher average cash and
marketable securities balances and interest rates in the current three and six
month periods compared to the same periods in fiscal 2007. Higher average cash
and marketable securities balances were primarily a function of the funds
received as part of the August 2006 private placements and the completion of
the Arrangement in July 2007.
<<
Lorus Therapeutics Inc.
Interim Consolidated Statements of Loss and Deficit
(unaudited)
(amounts in
000's except
for per common
share data) Three Three Six Six
(Canadian months ended months ended months ended months ended
dollars) Nov. 30, 2007 Nov. 30, 2006 Nov. 30, 2007 Nov. 30, 2006
-------------------------------------------------------------------------
REVENUE $ 1 $ 23 $ 27 $ 30
-------------------------------------------------------------------------
EXPENSES
Cost of sales - 3 1 6
Research and
development 1,247 1,122 2,029 2,453
General and
administrative 1,103 1,407 1,839 2,195
Stock-based
compensation
(note 4) 209 150 312 263
Depreciation and
amortization of
fixed assets 80 100 159 200
-------------------------------------------------------------------------
Operating expenses 2,639 2,782 4,340 5,117
Interest expense
on convertible
debentures 271 262 541 527
Accretion in
carrying value
of convertible
debentures 273 227 539 446
Amortization
of deferred
financing charges 34 27 66 52
Interest income (175) (158) (315) (225)
-------------------------------------------------------------------------
Loss from
operation for
the period 3,041 3,117 5,144 5,887
-------------------------------------------------------------------------
Gain on sale of
shares (note 1) (216) - (6,310) -
-------------------------------------------------------------------------
Net loss/(earnings)
and other
comprehensive
income for the
period 2,825 3,117 (1,166) 5,887
-------------------------------------------------------------------------
Basic loss
(earnings)
per share $ 0.01 $ 0.01 $ (0.01) $ 0.03
Diluted loss
(earnings)
per share n/a n/a $ (0.01) n/a
-------------------------------------------------------------------------
Weighted average
number of common
shares outstanding
used in the
calculation of
Basic (earnings)
loss per share 214,351 209,992 213,704 198,261
Diluted
(earnings) loss
per share n/a n/a 227,266 n/a
-------------------------------------------------------------------------
>>
Note re the financial statement information above:
On July 10, 2007 (the "Arrangement Date"), the Company completed a plan
of arrangement and corporate reorganization with 4325231 Canada Inc., formerly
Lorus Therapeutics Inc., ("Old Lorus"), 6707157 Canada Inc. and Pinnacle
International Lands Inc (the "Arrangement"). As a result of the plan of
arrangement and reorganization, among other things, each common share of Old
Lorus was exchanged for one common share of the Company and the assets
(excluding certain future tax assets and related valuation allowance) and
liabilities of Old Lorus were transferred to the Company and/or its
subsidiaries. The Company continued the business of Old Lorus after the
Arrangement Date with the same officers and employees and continued to be
governed by the same Board of Directors as Old Lorus prior to the Arrangement
Date. Therefore, the Company's operations have been accounted for on a
continuity of interest basis and accordingly, the consolidated financial
statement information above reflect that of the Company as if it had always
carried on the business formerly carried on by Old Lorus.
About Lorus
Lorus is a biopharmaceutical company focused on the research and
development of novel therapeutics in cancer. Lorus' goal is to capitalize on
its research, preclinical, clinical and regulatory expertise by developing new
drug candidates that can be used, either alone, or in combination with other
drugs, to successfully manage cancer. Through its own discovery efforts and an
acquisition and in-licensing program, Lorus is building a portfolio of
promising anticancer drugs. Lorus Therapeutics Inc. is listed on the Toronto
Stock Exchange under the symbol LOR, and on the American Stock Exchange under
the symbol LRP.
Forward Looking Statements
This press release contains forward-looking statements within the meaning
of Canadian and U.S. securities laws. Such statements include, but are not
limited to, statements relating to: financings and corporate reorganizations,
the establishment of corporate alliances, the Company's plans, objectives,
expectations and intentions and other statements including words such as
"continue", "expect", "intend", "will", "should", "would", "may", and other
similar expressions. Such statements reflect our current views with respect to
future events and are subject to risks and uncertainties and are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by us are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies. Many
factors could cause our actual results, performance or achievements to be
materially different from any future results, performance or achievements
described in this press release. Such expressed or implied forward looking
statements could include, among others: our ability to obtain the capital
required for research and operations; the inherent risks in early stage drug
development including demonstrating efficacy; development time/cost and the
regulatory approval process; the progress of our clinical trials; our ability
to find and enter into agreements with potential partners; our ability to
attract and retain key personnel; changing market conditions; and other risks
detailed from time-to-time in our ongoing quarterly filings, annual
information forms, annual reports and annual filings with Canadian securities
regulators and the United States Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should
the assumptions set out in the section entitled "Risk Factors" in our filings
with Canadian securities regulators and the United States Securities and
Exchange Commission underlying those forward-looking statements prove
incorrect, actual results may vary materially from those described herein.
These forward-looking statements are made as of the date of this press release
and we do not intend, and do not assume any obligation, to update these
forward-looking statements, except as required by law. We cannot assure you
that such statements will prove to be accurate as actual results and future
events could differ materially from those anticipated in such statements.
Investors are cautioned that forward-looking statements are not guarantees of
future performance and accordingly investors are cautioned not to put undue
reliance on forward-looking statements due to the inherent uncertainty
therein.
Lorus Therapeutics Inc.'s recent press releases are available through its
website at www.lorusthera.com. For Lorus' regulatory filings on SEDAR, please
go to www.Sedar.com. For SEDAR filings prior to July 10, 2007 you will find
these under the company profile for Global Summit Real Estate Inc. (Old
Lorus).
%SEDAR: 00025614EF %CIK: 0000882361
/For further information: Lorus Therapeutics Inc., Dr. Saeid Babaei,
(416) 798-1200 ext. 490, ir(at)lorusthera.com/
(LOR. LRP)
CO: Lorus Therapeutics Inc.
CNW 09:25e 08-JAN-08