EDMONTON, Alberta, Aug. 25 /PRNewswire-FirstCall/--
AltaRex Corp. (TSX: AXO, OTC: ALXFF) ("AltaRex" or the "Company") today
announced its financial results for the second quarter ended June 30, 2003.
All amounts reported are in Canadian dollars unless otherwise stated.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO )
The Company recorded a net loss for the three months ended June 30, 2003
of $1.8 million, or $(0.04) per share, compared to a net loss of $0.5 million,
or $(0.01) per share, for the same period in 2002. The expenses for the three
months ended June 30, 2003 reflect the expense of severance costs for the
employees located in the Waltham office, the write-off of the remaining assets
located in the Waltham office and closure of the Waltham office. The net loss
for the three months ended June 30, 2002 included a reimbursement of $2.37
million by United Therapeutics of associated costs, related to the licensed
technology, for research and development and clinical regulatory expenses
incurred prior to the effective date of the April 17, 2002 License agreement
with United Therapeutics. The net loss for the six months ended June 30, 2003
was $3.2 million, or $(0.07) per share, compared to a net loss of $6.2
million, or $(0.17) per share, for the same period in 2002.
At June 30, 2003, the Company's cash and cash equivalents totaled $0.4
million as compared to $3.6 million at December 31, 2002. The Company believes
that its available cash and cash equivalents thereon should be sufficient to
finance its operations and capital needs into the fourth 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 August 11, 2003, the Company announced an extension to the Exclusive
License Agreement with United Therapeutics to include the territory of
Germany. In exchange for the extension, the Company received an upfront
payment, and commitment of milestone payments and royalties based on future
sales.
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.
(In Canadian dollars) June 30, 2003 December 31, 2002
Assets (unaudited)
Current assets:
Cash and cash equivalents $391,367 $3,625,736
Accounts and other receivables 29,097 211,010
Prepaid expenses and other assets 673,820 341,340
1,094,284 4,178,086
Deposits and other assets 36,838 42,935
Capital assets 26,801 325,846
$1,157,923 $4,546,867
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities 1,432,976 1,646,759
1,432,976 1,646,759
Note Payable 674,763 674,763
Shareholders' equity:
Share capital 106,430,741 106,430,741
Accumulated deficit during
the development stage (107,380,557) (104,205,396)
Total shareholders' equity (949,816) 2,225,345
$1,157,923 $4,546,867
For the three months For the six months
ended June 30, ended June 30,
(In Canadian dollars, except share amounts)
2003 2002 2003 2002
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues
Interest income $228 $2,510 $1,948 $27,545
Total revenues 228 2,510 1,948 27,545
Expenses
Research & development,
net of reimbursement
in 2002 228,163 (1,588,424) 443,619 347,717
Clinical & regulatory,
net of reimbursement
in 2002 277 347,717 23,797 2,527,595
General &
administrative 1,596,413 1,682,412 2,709,693 3,320,088
Total expenses 1,824,853 531,968 3,177,109 6,195,400
Net loss for
the period ($1,824,625) ($529,458) ($3,175,161) ($6,167,855)
Net loss per
common share ($0.04) ($0.01) ($0.07) ($0.17)
Weighted average
number of
common shares 45,896,936 40,823,056 45,896,936 36,751,956
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/comp/128163.html
CONTACT:
Rob Salmon, Chief Financial Officer of
AltaRex Corp., +1-780-989-6708, rsalmon@altarex.com
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