WALTHAM, Mass., Nov. 22 /PRNewswire-FirstCall/ --
AltaRex Corp. (TSE: AXO, OTC: ALXFF.PK), announced its financial results for
the third quarter ended September 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 $1.5 million, or ($0.03) per share, for
the three months ended September 30, 2002 compared to a net loss of $9.9
million, or ($0.35) per share, for the same period in 2001. For the nine month
period ended September 30, 2002, the Company recorded a net loss of $7.6
million, or ($0.19) per share, compared to a net loss of $23.7 million, or
($0.90) per share, for the same period in 2001. The decreased net loss for
each of the 2002 periods primarily reflects the April 17, 2002 license to
United Therapeutics Corporation of 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, as well as United's hiring of certain
former personnel of the Company. The losses for the nine month period ended
September 30, 2002 were also 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. As a result of the
License Agreement, the Company's research and development and supporting
general administrative expenses decreased significantly in the third quarter
of 2002 and the Company anticipates that they will remain at this level in the
fourth quarter of 2002.
At September 30, 2002, the Company's cash, cash equivalents and short-term
investments totaled $4.8 million as compared to $2.7 million at June 30, 2002
and $9.1 million at December 31, 2001. 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 $1.36 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.
Additional information about AltaRex Corp. can be found on 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; 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 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; 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
FINANCIAL TABLES TO FOLLOW
Condensed Consolidated Statement of Operations
(In Canadian dollars, Unaudited)
Three months ended Nine months ended
September 30, September 30, September 30, September 30,
2002 2001 2002 2001
Revenues $1,505 $126,751 $29,050 $453,358
Expenses
Research &
development 168,629 7,815,869 3,043,941 18,558,219
General &
administration 1,301,152 2,209,945 4,621,240 5,601,849
1,469,781 10,025,814 7,665,181 24,160,068
Net loss for
the period $(1,468,276) $(9,899,063) $(7,636,131) $(23,706,710)
Net loss per
common share $(0.03) $(0.35) $(0.19) $(0.90)
Weighted average
number of
common shares
outstanding 43,801,413 28,586,029 40,448,881 26,442,278
Condensed Consolidated Balance Sheet
(In Canadian dollars, Unaudited)
As of As of
September 30, Dec. 31,
2002 2001
ASSETS
Cash and cash equivalents $4,764,611 $ 8,211,313
Short-term investments - 856,051
Other current assets 1,266,509 853,152
Capital assets, net 384,088 634,870
Other assets 43,104 235,671
Total assets $6,458,312 $ 10,791,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 2,725,074 $7,383,751
Note Payable 674,763 -
Total shareholder's equity 3,058,475 3,407,306
Total liabilities and shareholders' equity $6,458,312 $10,791,057
Contact:
Kathy Theriault
Chief Accounting Officer
(781) 672-0138
investor@altarex.com
SOURCE AltaRex Corp.
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Related links:
http://www.altarex.com
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CONTACT:
Kathy Theriault, Chief Accounting Officer of
AltaRex, +1-781- 672-0138, investor@altarex.com
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