Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350
Attention Business/Financial Editors:
Lorus Therapeutics Reports Results for Fiscal Year 2008
TORONTO, July 21 /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 year ended May 31, 2008. Unless specified
otherwise, all amounts are in Canadian dollars.
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2008 HIGHLIGHTS
- Initiation of GLP toxicology studies for Lorus' 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 by the Q4/2008 or 1Q/2009, following successful
completion of the toxicology program in the third quarter of 2008
calendar year.
- Announced completion of a proof-of-concept clinical trial in Acute
Myeloid Leukemia (AML), and expansion of its LOR-2040 development
program in this indication, with initiation of a more advanced
Phase II clinical trial. The proof-of-concept study generated
encouraging results demonstrating safety and appropriate dosing of
the combination regimen. Notably, promising clinical responses in
patients under 60 years of age were obtained which included complete
responses in 35% of the 23 patients and significant cytoreduction of
leukemic blasts in two others. Moreover, the clinical responses
correlated with downregulation of R2, the cellular target of LOR-
2040, and were further supported by demonstration of intracellular
LOR-2040 in circulating and bone marrow leukemic cells.
- 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 is responsible
for the cost of all clinical development, regulatory submissions and
commercialization of Virulizin(R) in North and South America, Europe
and Israel. Under the terms of the licensing agreement, Lorus is
entitled to receive payments in excess of US$10 million in upfront
and various clinical and regulatory milestones payments as well as
royalties that vary from 10-20% depending on sales of Virulizin(R).
Lorus also received 25% of the initial equity in ZOR. In addition,
Lorus has entered into a Service Agreement with ZOR to assist in the
transfer of knowledge for moving forward with the clinical
development program for Virulizin(R).
- Commenced a development program aimed at expanding the therapeutic
application of its clinical-stage drug LOR-2040 for the treatment of
superficial bladder cancer.
- Completed a corporate reorganization resulting in approximately
$6.9 million in additional cash for Lorus without diluting the equity
interests of existing securityholders
- Announced a rights offering to Lorus shareholders to raise, if fully
subscribed, gross proceeds of $7.1 million. Each shareholder will
receive one right and 4 rights will entitle the holder to purchase
one unit consisting of one common share and 1/2 common share purchase
warrant.
>>
"We are pleased with the important milestones achieved during fiscal 2008
including the initiation of GLP-toxicology studies for LOR-253; the
commencement of a Phase II clinical trial for LOR-2040 in AML; and a key
licensing transaction for Virulizin(R)", stated Dr. Aiping Young, President
and CEO of Lorus. "In addition to the key scientific milestones achieved
during fiscal 2008, we have strengthened our financial position through a
$6.9 million non-dilutive financing by means of corporate reorganization and
initiation of a rights offering. The achievements realized this year have
resulted in a necessary increase in research and development expenditures,
although we expect our overall expenditures to decrease significantly in
fiscal 2009".
FINANCIAL RESULTS
Due to an increase in research and development activities as described
below, loss from operations excluding the gain on sale relating to the
arrangement (as discussed below) for the year ended May 31, 2008, increased to
$12.6 million from $9.6 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 year ended May 31, 2008 of $6.3 million ($0.03 per share).
Research and development expenses increased to $6.1 million for the year
ended May 31, 2008 as compared $3.4 million in the prior year.
The increase in research and development expenditures in the year ended
May 31, 2008 is due to a significant increase in activity within our LOR-2040
and Small Molecule development programs, in particular, due to the
manufacturing cost of LOR-2040 needed to complete the ongoing Phase I and
Phase II clinical studies as well as future potential development initiatives.
Other contributing factors include the initiation of an advanced Phase II
clinical trial with LOR-2040 in AML, GLP-toxicology studies with LOR-2040 for
the treatment of bladder cancer, and the advancement of our small molecule
program into GLP-toxicology studies.
For the year ended May 31, 2008, general and administrative expense was
$3.9 million compared with $3.8 million in the same period last year. General
and administrative expenditures have remained consistent with the prior year.
The Company utilized cash of $10.2 million in operating activities in the
year ended May 31, 2008 compared with $6.3 million during the year ended May
31, 2007 reflecting the increase in research and development activities during
the year. At May 31, 2008, Lorus had cash and cash equivalents, short-term
investments and marketable securities of $9.4 million compared to
$12.2 million at May 31, 2007. Lorus believes that its current cash and cash
equivalents, short-term investments and marketable securities and interest
income will be sufficient to carry out the current research and development
plans and operations through to the first quarter of fiscal 2010.
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Lorus Therapeutics Inc.
Consolidated Statements of Loss (unaudited)
Years Ended May 31
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(Canadian dollars) 2008 2007 2006
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REVENUE $ 43 $ 107 $ 26
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EXPENSES
Cost of sales 2 16 3
Research and development 6,087 3,384 10,237
General and administrative 3,888 3,848 4,334
Stock-based compensation 719 503 1,205
Depreciation and amortization of
fixed assets 317 402 771
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Operating expenses 11,013 8,153 16,550
Interest expense on convertible
debentures 1,029 1,050 882
Accretion in carrying value of
convertible debentures 1,045 935 790
Amortization of deferred financing
charges 131 110 87
Interest income (542) (503) (374)
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Loss from operation for the period 12,633 9,638 17,909
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(Gain) on sale of shares (6,299)
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Net (earnings)/loss and other
comprehensive income for the
period 6,334 9,638 17,909
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Basic and diluted loss per common
share $ 0.03 $ 0.05 $ 0.10
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Weighted average number of common
shares outstanding used in the
calculation of basic and diluted
loss per share 215,084 204,860 173,523
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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.
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).
%CIK: 0000882361
/For further information: Lorus Therapeutics Inc., Dr. Saeid Babaei,
(416) 798-1200, ext. 490, ir(at)lorusthera.com/
(LRP LOR.)
CO: Lorus Therapeutics Inc.
CNW 13:56e 21-JUL-08