Exhibit
99.1
Lorus
Therapeutics Reports First Quarter Results for Fiscal Year 2009
TORONTO, CANADA - October 9,
2008 - 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 August 31, 2008. Unless specified otherwise,
all amounts are in Canadian dollars.
JUNE
1, 2008 TO DATE HIGHLIGHTS:
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Completed
a rights offering to eligible shareholders raising net proceeds of $3.2
million.
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Successfully
completed GLP toxicology studies exploring a novel route of administration
for LOR-2040 when administered by intravesical (or direct) administration
into the bladder.
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Received
Orphan Drug status for the treatment of Acute Myeloid Leukemia by the
Committee for Orphan Medicinal Products of the European Medicines
Agency.
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Received
$600 thousand originally held in escrow in connection with Lorus’
corporate reorganization completed on July 10, 2007. The Corporation has
received total net proceeds of $6.9 million in non-dilutive financing as
part of this transaction.
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Announced
the publications of two key scientific studies on LOR-2040 by academic
collaborators.
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“We
were pleased to start fiscal 2009 with success in both product development and
financing” said Dr. Aiping Young, President and CEO of Lorus. “The
successful toxicology results together with our increased level of understanding
for LOR-2040 and the funding received from the rights offering allow us to
further develop our products.”
FINANCIAL
RESULTS
Our
loss from operations for the three months ended August 31, 2008 increased to
$2.7 million ($0.01 per share) compared to a net loss of $2.1 million ($0.01 per
share) during the same period in fiscal 2008. During the
quarter ended August 31, 2008 the Company recorded a gain on sale of shares
related to the Arrangement (described below) of $450 thousand which reduced the
net loss and other comprehensive income to $2.2 million ($0.01 per
share). On the close of the Arrangement during the period ended
August 31, 2007, the Company realized a gain on the sale of the shares of Old
Lorus (described below) in the amount of $6.1 million resulting in Net earnings
and other comprehensive income for the period of $4.0 million ($0.02 earnings
per share). The increase in loss from operations in the current
three-month period as compared to the previous year is primarily a result of
higher research and development costs of $396 thousand and higher general and
administrative expenses of $105 thousand.
For
the three-month period ended August 31, 2008, research and development
expenditures increased by $396 thousand to $1.2 million from $782 thousand in
the prior year resulting from increased activity within our LOR-2040 and Small
Molecule programs. These additional costs included the GLP-toxicology
studies for both LOR-253 (our lead small molecule drug candidate) and LOR-2040
in bladder cancer, drug validation in preparation for LOR-253 manufacturing and
LOR-2040 drug filling costs.
General
and administrative expenses totaled $841 thousand in the three-month period
ended August 31, 2008 compared to $736 thousand in same period last year. The
slight increase in general and administrative costs is the result of higher
personnel and consulting costs incurred within our business development
department as well as foreign exchange losses on our outstanding accounts
payable balances.
We
utilized cash of $1.8 million in our operating activities in three-month period
ended August 31, 2008 compared with $2.3 million during the same period in
fiscal 2008. The decrease is primarily a result of a reduction in
accounts payable and an increase in prepaid and other assets balances in 2007
offset by an increased net loss for the quarter ended August 31,
2008. At August 31, 2008, we had cash and cash equivalents and
short-term investments of $11.3 million compared to $9.4 million at May 31,
2008. Based on our current plans and projections we believe that our current
cash and cash equivalents and short term investments will allow us to continue
to execute our research and development plans for more than a year. The current
cash position is not sufficient to satisfy the obligation of the existing $15
million convertible debenture that is due in October 2009. The Company is
pursuing strategies to address this obligation, which will be considered a
current liability effective October 6, 2008.
Lorus
Therapeutics Inc.
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Consolidated
Statements of Loss (unaudited)
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Three
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Three
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(amounts
in 000's except for per common share data)
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months
ended
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months
ended
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(Canadian
dollars)
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Aug.
31, 2008
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Aug.
31, 2007
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REVENUE
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$ |
3 |
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$ |
26 |
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EXPENSES
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Cost
of sales
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- |
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1 |
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Research
and development
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1,178 |
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782 |
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General
and administrative
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841 |
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736 |
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Stock-based
compensation
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91 |
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103 |
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Depreciation
and amortization of fixed assets
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43 |
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79 |
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Operating
expenses
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2,153 |
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1,701 |
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Interest
expense on convertible debentures
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217 |
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270 |
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Accretion
in carrying value of convertible debentures
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377 |
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298 |
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Interest
income
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(82 |
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(140 |
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Loss
from operation for the period
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2,662 |
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2,103 |
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Gain
on sale of shares
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(450 |
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(6,094 |
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Net
loss (earnings) and other comprehensive loss (income) for the
period
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2,212 |
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(3,991 |
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Basic
and diluted loss (earnings) per common share
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$ |
0.01 |
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$ |
(0.02 |
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Weighted
average number of common shares outstanding used in the calculation
of
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Basic
loss (earnings) per share
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228,407 |
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213,057 |
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Diluted
loss (earnings) per share
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228,407 |
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227,266 |
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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. that resulted in net proceeds of $6.9 million (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 continue as a going concern, our ability to
repay or refinance the convertible debentures by October 2009, 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).
For
further information, please contact:
Lorus
Therapeutics Inc.
Elizabeth
Williams, 1-416-798-1200 ext. 372
ir@lorusthera.com