EDMONTON, Alberta, May 30 /PRNewswire-FirstCall/ --
AltaRex Corp. (TSX: AXO, OTC: ALXFF) ("AltaRex" or the "Company") today
announced its financial results for the first quarter ended March 31, 2003.
All amounts reported are in Canadian dollars unless otherwise stated.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO )
The Company recorded a net loss of $1.4 million, or $0.03 per share, for
the three months ended March 31, 2003 compared to a net loss of $5.6 million,
or $0.15 per share, for the same period in 2002. The decreased net loss
primarily reflects the April 17, 2002 license with the Company's strategic
partner, United Therapeutics Corporation, for the Company's OvaRex(R) and
certain other MAb products for North America, Japan, and other countries,
United's assumption of ongoing development responsibilities and associated
expenses of OvaRex(R) MAb in the licensed territory, United's hiring of
certain former personnel of the Company and a resulting significant decrease
in the Company's research and development and supporting general
administrative expenses in the first quarter of 2003.
At March 31, 2003, the Company's cash and cash equivalents totaled $2.6
million as compared to $3.6 million at December 31, 2002. The Company believes
that its available cash and cash equivalents and interest earned thereon
should be sufficient to finance its operations and capital needs into the
third quarter of 2003. The Company is currently pursuing corporate alliances
and financing options in order to raise the cash required to continue to fund
its operations.
On May 15, 2003, the Company announced certain management changes and a
restructuring program to prioritize its initiatives and reduce operating
costs. The restructuring program includes a reduction in the number of the
Company's full-time employees, the closure of the Company's Boston-area
offices and the relocation of its executive and administrative offices to
Edmonton, Alberta. This restructuring program is already in process.
AltaRex Corp. is focused on the research, development and
commercialization of foreign antibodies that modulate the immune system for
the treatment of certain cancers and other diseases where there exists an
unmet medical need. Additional information about AltaRex Corp. can be found on
its website at http://www.altarex.com.
This news release contains forward-looking statements that involve risks
and uncertainties, which may cause actual results to differ materially from
the statements made. For this purpose, any statements that are contained
herein that are not statements of historical fact may be deemed to be forward-
looking statements. Without limiting the foregoing, the words "believes,"
"anticipates," "plans," "intends," "expects" and similar expressions are
intended to identify forward-looking statements. Such risks and uncertainties
include, but are not limited to the Company's need for capital; the risk that
the Company can not raise funds on a timely basis on satisfactory terms or at
all; the need to obtain and maintain corporate alliances, such as the alliance
with United Therapeutics Corporation, and the risk that the Company cannot
establish corporate alliances on a timely basis, on satisfactory terms, or at
all; changing market conditions; uncertainties regarding the timely and
successful completion of clinical trials and patient enrollment rates,
uncertainty of pre-clinical, retrospective, early and interim clinical trial
results, which may not be indicative of results that will be obtained in
ongoing or future clinical trials; whether the Company and/or its
collaborators will file for regulatory approval on a timely basis;
uncertainties as to when, if at all, the FDA and other similar regulatory
agencies will accept or approve regulatory filings for the Company's products;
the need to establish and scale-up manufacturing processes, uncertainty as to
the timely development and market acceptance of the Company's products; the
risk that the claims allowed under any issued patent owned or licensed by the
Company will not be sufficiently broad to protect the Company's technology,
that any patents issued to the Company will not be sustained if challenged in
court proceedings or otherwise or that third parties will be able to develop
products or processes that do not infringe valid patents owned or licensed by
the Company, and other risks detailed from time-to-time in the Company's
filings with the United States Securities and Exchange Commission and Canadian
securities authorities. The Company does not assume any obligation to update
any forward-looking statement.
THE TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
Condensed Consolidated Statement of Operations
(In Canadian dollars, Unaudited)
Three months ended
Mar. 31, Mar. 31,
2003 2002
Revenues $1,720 $25,035
Expenses
Research & development 238,978 4,025,756
General & administration 1,113,280 1,637,676
1,352,258 5,663,432
Net loss for the period $(1,350,538) $(5,638,397)
Net loss per common share $(0.03) $(0.15)
Weighted average number of
common shares outstanding 45,896,936 36,678,716
Condensed Consolidated Balance Sheet
(In Canadian dollars, Unaudited)
As of As of
March 31, Dec. 31,
2003 2002
ASSETS
Cash and cash equivalents $2,576,259 $3,625,736
Other current assets 363,793 552,350
Capital assets, net 197,742 325,846
Other assets 39,936 42,935
Total assets $3,177,730 $4,546,867
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $1,628,160 $1,646,759
Note payable 674,763 674,763
Total shareholder's equity 874,807 2,225,345
Total liabilities and shareholders' equity $3,177,730 $4,546,867
Contact:
Rob Salmon
Chief Financial Officer
(780) 989-6708
rsalmon@altarex.com
SOURCE AltaRex Corp.
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Related links:
http://www.altarex.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/128163.html
CONTACT:
Rob Salmon, Chief Financial Officer of
AltaRex, +1-780-989-6708, rsalmon@altarex.com
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