- Highlights Accomplishments During Period -
WALTHAM, Mass., Aug. 16 /PRNewswire/ -- AltaRex Corp.
(Toronto: AXO, OTC: ALXFF), a developer of antigen-targeted antibody-based
cancer therapeutics, today announced its financial results for the second
quarter ended June 30, 2001. All dollars reported are Canadian.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO )
The Company recorded a net loss of $7.5 million or $0.28 per share for the
three months ended June 30, 2001 compared to a net loss of $4.2 million, or
$0.27 per share, for the same period in 2000. For the six month period ended
June 30, 2001, the Company recorded a net loss of $13.8 million, or $0.54 per
share, compared to a net loss of $8.1 million, or $0.55 per share for the same
period in 2000. The increased net loss is due primarily to the increased
spending in manufacturing and clinical development for the Company's lead
product, OvaRex(R) MAb (oregovomab) for ovarian cancer. The Company is
scaling up OvaRex(R) production under a development and commercial supply
agreement with Abbott Laboratories. The antibody is in the final stages of
clinical development prior to the Company's filing with the U.S. Food and Drug
Administration for accelerated approval of OvaRex(R) MAb.
At June 30, 2001, the Company's cash and short-term investments totaled
$16.2 million as compared to $6.0 million at June 30, 2000 and $13.3 million
at December 31, 2000, reflecting the impact of capital raising initiatives and
the Company's net cash burn during the period. On February 13, 2001, the
Company closed an offering in Canada of 4,402,211 common shares for net
proceeds of $7.2 million. On June 6, 2001, the Company closed an offering of
3,000,000 Special Warrants for net proceeds to the Company of approximately
$7.9 million. The Special Warrants were converted into 3,000,000 common
shares of the Company upon the filing of a final prospectus dated July 27,
2001, qualifying such shares.
AltaRex's second quarter progress was highlighted by:
-- Important clinical findings with its lead product OvaRex(R) MAb.
-- Issuance of its cornerstone "multi-epitopic" patent in the United
States for OvaRex(R) MAb.
-- Publication in a peer-reviewed journal of the novel method of treatment
operative with OvaRex(R) MAb and, the Company believes, its other
antibodies in development.
-- Additions to its Board of Directors and Scientific Advisory Board.
-- A letter of intent for a research and development collaboration with
Epigen, Inc. for the development of antibodies against Epigen's novel
tumor specific antigen target, Human Carcinoma Antigen (HCA).
"The most important catalyst for our progress was the continued reporting
during the period of positive results from the OvaRex(R) MAb clinical
development program for ovarian cancer patients in both recurrent and
'watchful waiting' disease stages," commented Richard Bagley, President and
CEO of AltaRex. The Company believes these results demonstrated long-term
survival and clinical benefit in identified patient groups, as well as
positive quality of life measures and benign safety data.
Clinical data from the lead 345-patient OvaRex(R) trial, along with
complementary and supporting trials, is expected to form the basis for the
Company's filing of a Biologics License Application (BLA) for OvaRex(R) MAb
with the U.S. Food and Drug Administration. This filing for OvaRex(R)
approval is anticipated to begin by year end 2001 or early in 2002 on a
"rolling" basis, assuming the timely scale-up of cell culture manufacturing to
establish product comparability.
On a separate note, with regard to the Company's other antibodies, the
start of a planned BrevaRex(R) trial for the treatment of multiple myeloma has
been delayed until the first or second quarter of 2002 in order to accommodate
GMP manufacture of additional BrevaRex(R) antibody.
More about AltaRex research and development of antigen-targeted anti-
cancer antibodies, clinical trials, news and events can be found on its web
site at http://www.altarex.com. AltaRex Corp. is traded on the Toronto Stock
Exchange under the symbol AXO, and over-the-counter in the United States under
the symbol ALXFF. Additional information about ovarian cancer can be found at
http://www.nci.nih.gov, http://www.ovarian.org., http://www.ovariancancer.org and at
http://www.ovariancanada.org. Information about multiple myeloma can be found at the
http://www.multiplemyeloma.org.
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 our need for capital and the risk that the
Company can not raise funds on a timely basis on satisfactory terms or at all,
changing market conditions, uncertainties regarding the timely and successful
completion of clinical trials, patient enrollment rates, uncertainty of pre-
clinical, retrospective and early clinical trial results, which may not be
indicative of results that will be obtained in ongoing or future clinical
trials, whether the Company will file for regulatory approval on a timely
basis, uncertainties as to when, if at all, the FDA will approve the Company's
regulatory filings for its products, the need to establish and scale-up
manufacturing processes, the need to obtain and maintain corporate alliances,
uncertainty as to the timely development and market acceptance of the
Company's products, uncertainty as to whether patents will issue from pending
patent applications and, if issued, as to whether such patents will be
sufficiently broad to protect the Company's technology, 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 TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN
- Financial Tables to Follow -
Condensed Consolidated Statement of Operations
(In Canadian dollars, Unaudited)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
Revenues $141,238 $96,068 $ 326,607 $187,909
Expenses
Research &
development 5,672,897 2,947,288 10,742,349 5,382,239
General &
administration 1,938,259 1,326,607 3,391,905 2,870,648
7,611,156 4,273,895 14,134,254 8,252,887
Net loss for the
period $(7,469,918) $(4,177,827)
$(13,807,647) $(8,064,978)
Net loss per
common share $(0.28) $(0.27) $(0.54) $(0.55)
Weighted average number of
common shares
outstanding 26,434,411 15,514,725 25,364,234 14,776,255
Condensed Consolidated Balance Sheet
(In Canadian dollars, Unaudited)
As of As of
June 30, June 30,
2001 2000
ASSETS
Cash and cash equivalents $12,399,844 $ 3,201,711
Short-term investments 3,752,380 2,836,137
Other current assets 383,942 145,466
Capital assets, net 521,370 708,763
Other assets 582,223 389,590
Total assets $17,639,759 $ 7,281,667
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 5,295,879 $2,618,627
Deferred lease credit and other liabilities - 32,156
Total shareholder's equity 12,343,880 4,630,884
Total liabilities and shareholders' equity $17,639,759 $7,281,667
SOURCE AltaRex Corp.
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Company News On-Call:
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Related links:
http://www.altarex.com
CONTACT:
Sondra Henrichon, Director, Investor
Relations and Corporate Communications of AltaRex Corp.,
+1-781-672-0138 ext. 1510, shenrichon@altarex.com; or Wayne
Hendry, Investor Relations of The Equicom Group Inc,
+1-416-815-0700 ext. 238, whendry@equicomgroup.com
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