WALTHAM, Mass., Aug. 29 /PRNewswire-FirstCall/--
AltaRex Corp. (TSE: AXO, OTC: ALXFF.PK), announced its financial results for
the second quarter ended June 30, 2002. 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 of $0.5 million, or ($0.01) per share, for
the three months ended June 30, 2002 compared to a net loss of $7.5 million,
or ($0.28) per share, for the same period in 2001. For the six month period
ended June 30, 2002, the Company recorded a net loss of $6.2 million, or
($0.17) per share, compared to a net loss of $13.8 million, or ($0.54) per
share, for the same period in 2001. The decreased net loss for each of the
2002 periods primarily reflected the assumption by United Therapeutics
Corporation of all expenses associated with the ongoing development of
OvaRex(R) MAb, including certain former personnel of the Company, pursuant to
the License Agreement signed by the Company and United Therapeutics on April
17, 2002. The losses for the three and six month periods ended June 30, 2002
were offset by the reimbursement of $2.37 million by United Therapeutics of
costs incurred prior to April 17, 2002 associated with OvaRex(R) manufacturing
and other development expenses.
At June 30, 2002, the Company's cash, cash equivalents and short-term
investments totaled $2.7 million as compared to $16.2 million at June 30, 2001
and $9.1 million at December 31, 2001. Subsequent to the close of the second
quarter, in August 2002, United Therapeutics exercised a warrant issued
pursuant to a License Agreement with the Company and purchased 3.25 million
common shares of the Company for an aggregate purchase price of approximately
$2.6 million (US$1.625 million). United Therapeutics also purchased a second
convertible debenture in the principal amount of $1.39 million (US$875,000) of
which approximately $0.7 million (US$441,960) of the principal amount thereof
has since automatically converted into 883,380 common shares of the Company.
AltaRex Corp. is focused on the research, development and
commercialization of antigen-targeted antibody-based therapies for life
threatening diseases utilizing monoclonal antibodies as immunotherapeutic
agents.
For additional information about AltaRex, visit the Company 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 our need for capital and 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, 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 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, 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 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 Six months ended
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
Revenues $2,510 $141,238 $27,545 $326,607
Expenses
Research &
development (1,150,444) 5,672,897 2,875,312 10,742,349
General &
administration 1,682,412 1,938,259 3,320,088 3,391,906
531,968 7,611,156 6,195,400 14,134,255
Net loss for
the period $(529,458) $(7,469,918) $(6,167,855) (13,807,648)
Net loss per
common share $(0.01) $(0.28) $(0.17) $(0.54)
Weighted average
number of
common shares
outstanding 40,823,056 26,434,411 36,751,956 25,364,234
Condensed Consolidated Balance Sheet
(In Canadian dollars, Unaudited)
As of As of
June 30, Dec. 31,
2002 2001
ASSETS
Cash and cash equivalents $2,672,363 $ 8,211,313
Short-term investments - 856,051
Other current assets 1,315,699 853,152
Capital assets, net 468,309 634,870
Other assets 235,671 235,671
Total assets $4,692,102 $ 10,791,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 3,460,951 $7,383,751
Total shareholder's equity 1,231,151 3,407,306
Total liabilities and shareholders' equity $4,692,102 $10,791,057
Contact:
Kathy Theriault
Corporate Controller
(781) 672-0138
investor@altarex.com
SOURCE AltaRex Corp.
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