-- Highlights Accomplishments During the Period --
WALTHAM, Mass., Nov. 13 /PRNewswire/ -- AltaRex Corp.
(Toronto: AXO, OTC: ALRXF) today announced its financial results for the third
quarter ended September 30, 2000. The following results are in Canadian
dollars.
( Photo: http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO )
In summary, the Company reported a reduced net loss for the quarter of
$4.2 million or $0.07 per share compared to a net loss of $9.5 million or
$0.17 per share for the third quarter of 1999. Similarly, the net loss for
the nine months ending September 30, 2000 was $12.3 million or $0.20 per share
as compared with a net loss of $19.6 million or $0.54 per share for the nine
months ending September 30, 1999. The Company's cash and short-term
investments as of September 30, 2000 totaled $10.6 million as compared with
$6.0 million at June 30, 2000 and $7.2 million at December 31, 1999.
"I'm very pleased to report on the advances we've made on multiple fronts
during the third quarter, particularly in the areas of clinical development
and partnering," noted Richard Bagley, President and Chief Executive Officer
of AltaRex Corp. "Our progress has positioned the Company to move our lead
product OvaRex(TM) MAb through final clinical development stages and to
initiate a U.S. filing of a Biologics License Application (BLA) for OvaRex(TM)
MAb in late 2001."
Continued Mr. Bagley, "The OvaRex(TM) MAb pre-clinical and clinical data
we are seeing lends validation to our belief that we can induce OvaRex(TM)
specific, robust immune responses in patients that can result in cancer
killing. Our goal is to obtain U.S. FDA approval of OvaRex(TM) MAb in 2002,
with other markets to follow worldwide."
The Company's 2000 Third Quarter Report, to be mailed to shareholders,
highlights the following recent accomplishments of the Company:
-- The Company's clinical development program for OvaRex(TM) MAb made
continued progress. AltaRex remains on schedule for initiating a filing for
regulatory approval of OvaRex(TM) MAb in the United States in late 2001 based
on Fast Track and accelerated review provisions of the U.S. Food and Drug
Administration (FDA). The Company believes its current clinical trial program
in the watchful waiting and recurrent disease indications will provide
sufficient data to support the BLA filing.
-- A new 102-patient clinical trial of OvaRex(TM) MAb was initiated. This
Phase II, open-label, dose randomized study is for patients in the "watchful
waiting" indication of ovarian cancer. The main objective of the study is to
directly assess the time to disease recurrence in patients receiving various
dosing schedules of OvaRex(TM) MAb following primary therapy (surgery and
chemotherapy). The trial is currently open to enrollment at selected sites in
the US and Canada.
-- A recent Company discovery of the role of human anti-mouse antibody
(HAMA) in the enhanced processing of the antigen/antibody complex to the
immune system -- which provides for a more effective immune response -- was
presented at the 3rd biennial Ovarian Cancer Research Symposium (OCRS) held in
Seattle.
-- The Company made several presentations at important partnering and
investor meetings such as BioJapan in Tokyo, Pharmaceutical Strategic
Alliances in New York and the Stephens Inc. Anti-Cancer Biopharmaceutical
Conference in San Francisco.
-- A U.S. patent for OvaRex(TM) MAb was formally issued, further
strengthening the Company's intellectual property portfolio. The method of
treatment and composition patent covers an innovative technique
("photoactivation") that uses ultraviolet light to modify antibodies and
enhance certain beneficial immune responses.
-- The Company announced the initiation of a joint venture with Medison
Pharma Ltd., a market leader in Israel and the Middle East. The 50:50
collaboration included an equity investment in AltaRex and covers the
commercialization, marketing and distribution of OvaRex(TM) MAb and other
AltaRex antibodies in the above noted territories. The Medison collaboration
is structured similarly to the previously announced collaboration with Genesis
Pharma S.A. of Greece and represents further advancement of the Company's
global commercialization plan.
-- In August, the Company successfully completed the sale of 10,580,000
Common Shares, including an over-allotment option, in a public offering at
$0.85 per Common Share, for net proceeds to the Company of approximately $8.0
million. The majority of this offering was raised from institutional investors
in the United States, complemented by commitments from existing investors in
Canada.
The decrease in net loss for both the three month and nine month periods
ended September 30, 2000 when compared to the respective periods of 1999
reflects a decrease in spending in both research and development activities
and in general and administrative functions of the Company. These
developments -- largely a result of operational changes implemented in the
fourth quarter of 1999 -- focused the resources of the Company on the
development of OvaRex(TM) MAb, thereby reducing net cash burn and conserving
capital. The decrease in the net loss per share also reflects the increase in
the weighted average number of Common Shares outstanding from 36,956,679 in
the third quarter of 1999 to 62,480,262 in the third quarter of 2000. This is
primarily the result of the issuance of following:
-- 5,687,546 Common Shares as a result of a $6.0 million Special Warrant
Offering in February 2000
-- 10,580,000 Common Shares in a $9.0 million public offering in August
2000 and,
-- 149,050 Common Shares in connection with collaborations with Genesis
Pharma S.A. and Medison Pharma Ltd. in August 2000 and exercises of options
and warrants during the first quarter of 2000.
Revenues for the three months ended September 30, 2000 were $120,110
compared with $203,748 for the same period in 1999. Revenues for the nine
months ended September 30, 2000 were $308,019 compared to $572,557 for the
nine months ended September 30, 1999. This decrease results from the
completion of a grant in 1999 and a reduction in interest income as a result
of lower levels of cash and short-term investments for the respective periods.
Operating expenses for the three months ended September 30, 2000 totaled
$4.3 million, a decrease of $5.4 million from the three month period ended
September 30, 1999. For the nine months ended September 30, 2000 operating
expenses totaled $12.6 million, a decrease of $7.6 million from the $20.2
million incurred for the comparable period in 1999. Operating expenses for
the three and nine month periods ended September 30, 1999 included $4.5
million and $5.0 million of costs, respectively, related to the settlement of
litigation with Biomira, Inc. Research and development expenses decreased by
$0.12 million for the quarter and $1.5 million for the first nine months of
the year as the Company focused its resources on the development of OvaRex(TM)
MAb and temporarily suspended its development of other products in the
pipeline. General and administrative expenses decreased by $0.7 million for
the quarter and $1.0 for the first nine months of the year, also reflecting
initiatives to reduce net cash burn and conserve capital.
AltaRex Corp. is focused exclusively on the research, development and
commercialization of antibody-based immunotherapeutic products to prolong life
and reduce the suffering associated with late-stage cancers. Data from
clinical studies suggest that through multiple mechanisms, AltaRex's
proprietary platform technology enhances the ability of the human immune
system to produce an anti-tumor response. The company has five antibody-based
products in various stages of development. The most advanced product is
OvaRex(TM) MAb, in late stage clinical development for the treatment ovarian
cancer.
Additional information about AltaRex research and development, news and
events can be found on its web site at http://www.altarex.com. Clinical information
can also be found on the CenterWatch web site at http://www.centerwarch.com.
Additional information about ovarian cancer can be found at http://www.nci.nih.gov,
http://www.ovariancanada.org and at http://www.ovarian.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 forgoing, the words "believes,"
"anticipates," "plans," "intends," "expects", "goal" and similar expressions
are intended to identify forward-looking statements. Such risks and
uncertainties include, but are not limited to the need for capital, changing
market conditions, completion of clinical trials, patient enrollment rates,
uncertainty of pre-clinical, retrospective and early clinical trial results,
such as the results described above which may not be indicative of results
that will be obtained in ongoing or future clinical trials, the establishment
of manufacturing processes and new corporate alliances, the timely
development, regulatory approval 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.
NEITHER THE ONTARIO SECURITIES COMMISSION NOR THE TORONTO STOCK EXCHANGE
HAVE APPROVED OR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.
Financial tables to follow.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Canadian dollars, Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenue $ 120,110 $ 203,748 $ 308,019 $ 572,557
Expenses
Research and
development 3,036,053 3,159,905 8,418,292 9,956,488
General and
administration 1,321,533 2,028,784 4,192,181 5,215,502
Settlement costs - 4,496,666 - 5,015,712
4,357,586 9,685,355 12,627,769 20,187,702
Net loss for
the period $(4,237,476) $(9,481,607) $(12,302,454) $(19,615,146)
Net loss per
common share $ (0.07) $ (0.17) $ (0.20) $ (0.54)
Weighted average
number of
common shares
outstanding 63,308,908 55,612,613 62,480,262 36,596,679
CONDENSED CONSOLIDATED BALANCE SHEET
(In Canadian dollars, Unaudited)
Nine Months Ended
September 30,
2000 1999
ASSETS
Cash and short-term investments $10,568,568 $11,436,244
Other current assets 189,699 183,811
Capital assets, net 579,372 1,060,128
Other assets 621,019 267,335
$11,958,658 $12,947,518
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $3,339,984 $2,128,587
Deferred lease credit and
other liabilities 8,013 197,954
Shareholders' equity 8,610,661 10,620,977
$11,958,658 $12,947,518
SOURCE AltaRex Corp.
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Related links:
http://www.altarex.com
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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/128163.html or fax,
800-758-5804, ext. 128163
CONTACT:
In US: Sondra Henrichon, Director, Investor
Relations and Corporate Communications of AltaRex Corp.,
781-672-0138, ext. 5110, shenrichon@altarex.com; or In Canada:
Wayne Hendry, Investor Relations of The Equicom Group, Inc,
416-815-0700, ext. 238, whendry@equicomgroup.com
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