NewsHopefully 2005 will be better than 2004. Cheers.
PharmaGap looks healthier as Q3 loss drops to $75,753
2004-11-25 15:21 ET - News Release
Mr. Simon Goulet reports
PHARMAGAP RELEASES THIRD QUARTER RESULTS -- ANNOUNCES ENCOURAGING RESULTS FOR CANCER DRUG-INITIATES PRIVATE EQUITY PLACEMENT
PharmaGap Inc. has released its third quarter and nine-month financial results (unaudited) for the period ended Sept. 30, 2004. Losses for the nine months this year were $274,243 (two cents per share), compared with a loss of $946,979 (six cents per share) for the same period last year. Revenues for the nine months this year were $293,115. No revenues were recorded for the same period in 2003. During the third quarter, ended Sept. 30, 2004, the loss was $75,753 (one cent per share) on revenues of $90,905, compared with a loss of $255,195 (two cents per share) and no revenues for the same quarter last year. As of Sept. 30, 2004, trade and tax credits receivable were $88,054 and cash and cash equivalents were $1,308.
In vitro testing has indicated effectiveness of the company's lead compound, GLI005, as a selective inhibitor of PKC-alpha, with beneficial effects in treatment of certain solid tumour cancers, including certain breast, lung and prostate cancers, along with lethal child's cancer called neuroblastoma.
PharmaGap is also in the process of testing the effectiveness of the GL1005 compound in reducing or eliminating the development of resistance to drugs used in chemotherapy (multidrug resistance), potentially improving effectiveness of existing drugs and reducing side effects. PKC-alpha is believed to be strongly associated with MDR.
Dr. Jenny Phipps, PharmaGap's chief scientific officer, sees these developments as potentially very significant. "Additional testing is required to establish the basis for phase 1 clinical trials of GL1005," Dr. Phipps said. "As these tests progress, we will seek an association with one or more of the major pharmaceutical companies in this field to co-operate with us in bringing this drug to market. In anticipation of these discussions, we expect to file for patent protection early in 2005."
The selective inhibition of intracellular kinase proteins (including the PKC family) is an important area of new drug development. Approximately 25 per cent of major pharma research and development is spent in this area (700 kinases identified to-date) and recent blockbuster oncology drugs such as Glivec (Novartis), Herceptin (Genentech), Erbitux (ImClone/Bristol-Myers Squibb) and Iressa (AstraZeneca) are kinase inhibitors. Most major pharmaceutical companies have kinase oncology programs and they are actively licensing. PharmaGap believes it is well positioned to offer a novel kinase inhibition technology for drug development.
The company is also proceeding with a non-brokered private equity placement of up to $500,000. These funds will be used to: accelerate research and development related to GL1005; complete patent applications and filings; expand the base of assays deliverable by the company; and for general corporate purposes.
Subject to approval by the TSX Venture Exchange (TSX-V), units will be sold comprising one common share at 25 cents per share, and one warrant to buy one common share at 40 cents per share within two years from the effective date of this issue. Subject to TSX-V approval, this issue is expected to close on or before Dec. 20, 2004.
In order to maintain liquidity prior to receipt of the private placement proceeds, the company has recently executed a short-term financing arrangement with a private third party.