Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350
Attention Business/Financial Editors:
Lorus Therapeutics reports third quarter results for fiscal year 2008
TORONTO, April 14 /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 and nine months ended February 29,
2008. Unless specified otherwise, all amounts are in Canadian dollars.
QUARTERLY HIGHLIGHTS
During the third quarter Lorus announced the initiation of GLP toxicology
studies for its lead anticancer small molecule drug LOR-253. The toxicology
studies, currently underway, are designed to support the filing of an
Investigational New Drug (IND) application with the U.S. FDA for LOR-253 to
initiate a Phase I clinical study in cancer indications. Lorus intends to
submit an IND for LOR-253 during the fourth quarter of 2008, following
successful completion of the toxicology program.
Subsequent to the third quarter, Lorus announced that its subsidiary
GeneSense Technologies, Inc. ("GeneSense") has signed an exclusive
multinational license agreement with Zor Pharmaceuticals LLC ("ZOR") formed as
a subsidiary of Zoticon Bioventures Inc. ("Zoticon"), to further develop and
commercialize Virulizin(R) for human therapeutic applications. ZOR will be
responsible for the cost of all the clinical development, regulatory
submissions and commercialization of Virulizin(R) in North and South America,
Europe and Israel. GeneSense will retain rights in rest of the world.
Under the terms of the licensing agreement, GeneSense will be entitled to
receive payments in excess of US$10 million in upfront and various clinical
and regulatory milestones payments. GeneSense will also receive royalties that
vary from 10-20% depending on achieving of sales of Virulizin(R). In addition,
Pharma Immune Inc. ("Pharma Immune"), a wholly owned subsidiary of Lorus, will
receive 25% of the initial equity in ZOR. Pharma Immune's equity will not be
subject to dilution on the first US$5 million of financing in ZOR. Thereafter,
Pharma Immune has, at its option, a right to participate in any additional
financings to maintain its ownership level. In addition, GeneSense has entered
into a Service Agreement with ZOR to assist in the transfer of knowledge for
moving forward with the development program for Virulizin.
"Moving LOR-253 forward is consistent with Lorus' focus on development of
novel drugs from a broad range of technologies", stated Dr. Aiping Young,
President and CEO of Lorus. "Initiation of GLP-toxicology studies for LOR-253
represents an important step towards bringing our first, and very promising,
small molecule compound into the clinic". "We are also delighted to partner
with Zoticon who shares our vision in the potential of Virulizin(R) and has
the expertise and financial commitment to bring Virulizin(R) to market".
FINANCIAL RESULTS
Loss from operations for the three-month period ended February 29, 2008
increased to $3.8 million ($0.02 per share) compared with a net loss of
$2.1 million ($0.01 per share) during the same period in fiscal 2007. For the
nine-month period ended February 29, 2008 the loss from operations, excluding
the gain on sale relating to the arrangement (as discussed below), increased
to $9.0 million from $7.9 million in the same period last year. On the 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 a net loss
for the nine-month period of $2.7 million ($0.01 per share). The gain on sale
of the shares was reduced by $11 thousand in the quarter reflecting an
increase in transaction costs.
Research and development expenses totaled $2.2 million in the three-month
period ended February 29, 2008 compared to $672 thousand during the same
period last year and increased to $4.3 million from $3.1 million in the nine
month period ended February 29, 2008 as compared to the same period in fiscal
2007.
For the three-month period ended February 29, 2008, research and
development expenditures increased by $1.6 million over the prior year
resulting from increased activity within our GTI-2040 and Small Molecule
programs. During the three-month period ended February 29, 2008, we incurred
$1.0 million in costs to manufacture additional quantities of GTI-2040 to
support our ongoing Phase II clinical trial in AML as well as an additional
$450 thousand in R&D expenditures to support the ongoing GLP toxicology
studies.
For the nine-month period ended February 29, 2008, research and
development expenditures increased by $1.7 million offset by a decrease in
amortization expense related to intangible assets of $655 thousand over the
same period in the previous year for a net increase of $1.0 million. The
increase is primarily due to increased research and testing costs in fiscal
2008 associated with the advancement of the Company's small molecule and
GTI-2040 programs as well as the manufacturing costs of $1.0 million
associated with the manufacture of additional quantities of GTI-2040 to
support our ongoing Phase II clinical trial in AML.
The Company utilized cash of $7.5 million in operating activities in the
nine-month period ended February 29, 2008 compared with $6.2 million during
the same period in fiscal 2007 reflecting the increase in net loss during the
nine-month period. At February 29, 2008, Lorus had cash and cash equivalents
and marketable securities of $12.2 million compared to $12.4 million at May
31, 2007.
General and administrative expenses totaled $863 thousand in the
three-month period ended February 29, 2008 compared to $833 thousand in same
period last year. For the nine-month period ended February 29, 2008, general
and administrative expense was $2.7 million compared with $3.0 million in the
same period last year. The decrease in general and administrative costs is the
result of costs incurred in the second quarter of 2007 related to the mutual
separation agreement between the Company and the then President and CEO offset
by increased human resource costs in the third quarter of 2008.
Interest income totaled $120 thousand in the three-month period ended
February 29, 2008 compared to $137 thousand in the same period last year and
$435 thousand for the nine month period ended February 29, 2008 and
$362 thousand for the comparable period last year. The slight decrease in
interest income in the current three-month period is due to a lower average
cash and marketable securities balance. The increase in interest income for
the nine month period ended February 29, 2008 compared with the prior year is
due to slightly higher average cash and marketable securities balances during
the first quarter of 2008 compared with the first quarter of 2007 and higher
interest rates in the first and second quarter of 2008 compared with 2007.
<<
Lorus Therapeutics Inc.
Interim Consolidated Statements of Loss and Deficit (unaudited)
Three Three Nine Nine
(amounts in 000's months months months months
except for per ended ended ended ended
common share data) Feb. 29, Feb. 28, Feb. 29, Feb. 28,
(Canadian dollars) 2008 2007 2008 2007
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REVENUE $ 3 $ 37 $ 30 $ 67
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EXPENSES
Cost of sales 1 6 2 12
Research and development 2,222 672 4,251 3,125
General and administrative 863 833 2,702 3,028
Stock-based compensation 217 105 529 368
Depreciation and amortization
of fixed assets 81 98 240 298
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Operating expenses 3,384 1,714 7,724 6,831
Interest expense on
convertible debentures 258 259 799 786
Accretion in carrying value
of convertible debentures 285 236 824 682
Amortization of deferred
financing charges 35 27 101 79
Interest income (120) (137) (435) (362)
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Loss from operation for
the period 3,839 2,062 8,983 7,949
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Loss/(Gain) on sale of shares 11 - (6,299) -
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Net loss and other comprehensive
Income for the period 3,850 2,062 2,684 7,949
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Basic loss per share $ 0.02 $ 0.01 $ 0.01 $ 0.04
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Weighted average number of
common shares outstanding used
in the calculation of basic
and diluted loss per share 216,225 210,670 214,846 202,287
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>>
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.
Other Corporate Updates:
Peter Korth has stepped down from his position as CFO, effective April
14, 2008. "We thank Peter for his help during the past few months and wish him
well in his future endeavors", commented Dr. Young, President and CEO of
Lorus. Elizabeth Williams, CA, Lorus' Director of Finance and Controller for
the past four years, has assumed his financial duties as Acting CFO. Elizabeth
Williams has held the Acting CFO position at Lorus in the past, from November
2005 to January 2008, and prior to her employment at Lorus she was an Audit
Manager with Ernst & Young LLP.
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; the achievement of milestones,
milestones and royalty payments, the successful development of Virulizin;
development time/cost and the regulatory approval process; the progress of
clinical trials; our ability to find and enter into agreements with potential
partners; the dilution of Pharma Immune's interest in Zor Pharmaceuticals; 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 23:15e 14-APR-08