EDMONTON, Alberta, May 11, 2012 (GLOBE NEWSWIRE) -- Isotechnika Pharma Inc. (TSX:ISA) today announced financial results for the three months ended March 31, 2012.
Financial Results
For the first quarter ended March 31, 2012, the Company reported a consolidated net loss of $454,000 or $0.003 per common share, as compared to a consolidated net loss of $2.89 million or $0.018 per common share for the same period in 2011.
Revenue increased to $5.8 million for the three months ended March 31, 2012, compared to $134,000 for the three months ended March 31, 2011. The increase was primarily the result of recording license revenue of $4.4 million upon termination of the Development, Distribution and License Agreement ("DDLA") with ILJIN Life Science Co., Ltd. ("ILJIN") on January 30, 2012 and recording $1.3 million of other revenue on the completion of a sale agreement with its partner, Lux Biosciences, Inc. for previously manufactured Active Pharmaceutical Ingredient.
Net research and development expenses increased slightly to $802,000 for the three months ended March 31, 2012, compared to $781,000 for the three months ended March 31, 2011. The Company's research and development efforts for the three months ended March 31, 2012 were primarily focused on the required planning and pre-dosing activities for the voclosporin Phase 3 clinical trial for kidney transplant and research activities for the NICAM program.
Corporate, administration and marketing expenses increased to $986,000 for the first quarter of 2012, compared to $709,000 for the same period in 2011. Corporate and administration expenses increased primarily due to higher professional and consulting fees for the three months ended March 31, 2012 compared to the same period in 2011. The Company incurred higher fees due to consulting services related to strategic alternatives and legal fees related to the termination of the DDLA with ILJIN.
Other expense increased to $4.2 million for the first quarter of 2012 compared to $1.3 million for the same period in 2011. Other expense for the three months ended March 31, 2012 included a non-cash loss of $4.2 million on the ILJIN derivative financial instrument compared to a loss of $871,000 on this instrument for the three months ended March 31, 2011.
The Company, as at March 31, 2012, had $3.3 million in cash and cash equivalents. The Company will need to raise additional cash and/or enter into a licensing/partnership arrangement in the near future.
For further discussion of the Company's financial results for the three months ended March 31, 2012, the unaudited interim condensed consolidated financial statements and the Management's Discussion and Analysis are accessible on Isotechnika's Web site at www.isotechnika.com or at www.sedar.com.
We seek Safe Harbour.
| Isotechnika Pharma Inc. | ||
| Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) | ||
| For the three month periods ended March 31, 2012 and 2011 | ||
| (in thousands of Canadian dollars, except per share amounts) | ||
|
March 31, 2012 $ |
March 31, 2011 $ |
|
| Revenue | ||
| Licensing revenue | 4,450 | 70 |
| Research and development revenue | 28 | 48 |
| Contract services | 22 | 16 |
| Other | 1,300 | -- |
| 5,800 | 134 | |
| Expenses | ||
| Research and development | 802 | 781 |
| Corporate and administration | 986 | 709 |
| Amortization of property and equipment | 148 | 182 |
| Amortization of intangible assets | 65 | 54 |
| Contract services | 19 | 13 |
| Other expense | 4,234 | 1,288 |
| 6,254 | 3,027 | |
| Net loss for the period | (454) | (2,893) |
| Comprehensive loss for the period | (454) | (2,893) |
| Loss per share | ||
| Basic and diluted net loss per common share | (0.003) | (0.018) |