(TheNewswire)
WINNIPEG, November 27, 2024 – TheNewswire - Cytophage Technologies Ltd. (TSXV:CYTO) (“Cytophage” or the “Company”), the only publicly traded phage company that is focused on bacteriophage solutions for both animal health and human health, today announced the filing of its financial results for the third quarter (Q3) ended September 30, 2024. The financial statements and corresponding Management Discussion and Analysis are available under the Company’s profile at sedarplus.com.
In Q3 2024, Cytophage made progress in product development and operational growth, including the opening of a new state-of-the-art R&D and production facility. These milestones position the Company to address growing global concerns around antimicrobial resistance (AMR) and food safety. The following six business highlights for Q3/2024 are outlined in detail to provide investors with visibility into Cytophage’s core strategic goals:
Innovative Phage Tablet Technology: Cytophage has developed a lyophilized phage tablet designed to treat multiple bacterial infections throughout the poultry lifecycle, including E. coli and Salmonella. This technology is available for all phage products in the FarmPhage lineup. This solution eliminates the need for cold chain logistics. The proprietary freeze-drying process preserves the structural integrity and viability of bacteriophages, and the resulting tablets can be easily dissolved in water or feed, allowing for rapid integration into existing farming practices. Treatments can be administered without specialized training or equipment.
New R&D Facility: Cytophage has been operating from its state-of-the-art 20,000-square-foot R&D and production facility in Winnipeg since early July 2024, with the facility’s official opening on November 28, 2024. Designed to support the Company’s continued growth, the facility features cutting-edge laboratories, administrative offices, and a manufacturing suite with pending GMP (Good Manufacturing Practice) capabilities. These enhancements will dramatically expand Cytophage’s ability to develop and produce innovative bacteriophage-based solutions at scale, meeting the increasing demand in both human and animal health markets. By housing advanced equipment and research infrastructure under one roof, the facility strengthens Cytophage’s competitive edge in bacteriophage development while streamlining operational efficiency.
Expansions in Human Health: Cytophage continues to drive innovation in combating prosthetic joint infections (PJI), a significant unmet need in healthcare with an addressable market opportunity estimated at $2.6 billion. Collaborating with leading orthopedic specialists, the Company is advancing its clinical focus on developing bacteriophage-based treatments specifically tailored to target bacterial strains associated with PJI. This approach addresses the growing challenge of antimicrobial resistance, which complicates traditional antibiotic therapies. Recent advancements include the receipt of new samples for patient testing, a critical step in optimizing treatment efficacy and validating product potential.
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Cytophage’s advancements in prosthetic joint infection (PJI) treatment, including promising early trial data, pave the way for expanded clinical programs in collaboration with orthopedic centers. These efforts de-risk subsequent product launches targeting broader indications.
Flagship Animal Health Products: Cytophage is at the forefront of bacteriophage solutions for animal health with its flagship products, AviPhage and OvaPhage. Both products represent innovative alternatives to antibiotics, aligning with global efforts to phase out prophylactic antibiotic use in livestock.
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AviPhage is designed to combat Salmonella and E. coli infections in poultry. The global poultry market was valued at approximately CAD $506.80 billion in 2022 and is projected to reach CAD $668.00 billion by 2030. Field trials of AviPhage demonstrate a 23% decrease in poultry mortality and a 12.4% reduction in feed conversion costs, validating the product’s potential to transform poultry farming. Cytophage is in advanced discussions with integrators in Southeast Asia, with first purchase orders expected in 2025.
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OvaPhage is designed to combat Salmonella and Shigella contamination in egg production, addressing critical challenges in food safety and regulatory compliance. The global egg market was valued at approximately CAD $350 billion in 2022 and is projected to reach CAD $522.11 billion by 2028. Early trials of OvaPhage indicate a 99% reduction in target bacterial strains on treated eggs, validating its potential to revolutionize egg production by reducing contamination risks. Cytophage continues to advance discussions with egg producers in Canada and South Asia.
Advancing Food Safety: Cytophage is tackling critical food safety challenges through its advanced bacteriophage solutions, addressing E. coli and Salmonella outbreaks that frequently impact global food systems. These pathogens, increasingly resistant to antibiotics, pose significant risks to public health and highlight the urgent need for innovative interventions. Cytophage’s Aviphage product, now being commercialized internationally, effectively reduces Salmonella and E. coli in poultry, supporting safer and more sustainable food production. The Company is also exploring additional applications, such as phage-based sprays for vegetable crops and cleansers for food processing facilities. In response to growing demand for food safety innovations, Cytophage is advancing discussions with major poultry and produce companies in Asia to integrate phage-based solutions into their supply chains. Early-stage pilots are planned for 2025.
Maximizing Growth with Non-Dilutive Funding Initiatives: Cytophage is actively pursuing non-dilutive funding through targeted grant opportunities. This approach involves identifying and engaging with relevant grant agencies and programs while conducting proof-of-concept studies to strengthen the competitiveness of its applications. The Company is prioritizing diverse funding streams, including projects in agriculture and human health (such as diagnostics development) as well as supportive initiatives like HR capacity-building and IT systems enhancements. These efforts aim to bolster Cytophage’s financial resources without impacting equity, enabling the Company to advance its cutting-edge bacteriophage solutions.
“This quarter marks a significant milestone for Cytophage as we continue to advance our mission of addressing critical global challenges like antimicrobial resistance and food safety,” said Dr. Steven Theriault, CEO of Cytophage. “From the development of groundbreaking technologies like our lyophilized phage tablet to the launch of our new state-of-the-art R&D facility, we are solidifying our position as a leader in bacteriophage innovation. With targeted efforts in both human and animal health, we are not only expanding our market reach but also driving meaningful change in industries that are pivotal to global health.”
Q32024 Financial Highlights
Cytophage remains focused on prudent financial management, with operating expenses now normalized following one-time costs associated with its go-public process and relocation to its new Winnipeg facility. Additionally, the Company is actively pursuing non-dilutive funding opportunities, including grants, to bolster its financial position and support future growth.
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Cash Position: Cash and cash equivalents totaled $2.35 million as of September 30, 2024.
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Current Assets: Current assets stood at $2.86 million as of the same date.
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Operating Expenses: Operating expenses were $1.13 million in Q3 2024, up from $0.98 million in Q3 2023, due to public company costs that were not present in Q3 2023, as the Company’s continued expenditures in key initiatives.
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Net Loss: The Company reported a net loss of $1.09 million in Q3 2024, compared to $0.98 million in Q3 2023, due to public company costs that were not present in Q3 2023, as well as the Company’s continued expenditures in key initiatives.
For further information please contact:
Heather Medwick
Chief Operating Officer
heather@cytophage.com
431 388 8873
Cytophage Investor Alerts: https://cytophage.com/subscribe/
About Cytophage Technologies
Cytophage Technologies (TSXV:CYTO) is a pioneering biotechnology company dedicated to bacteriophage research, product development and commercialization. Committed to addressing the global challenge of antibiotic resistance, Cytophage advances innovative products that harness the power of bacteriophages to combat bacterial infections affecting human health, animal health, and food security.
Cautionary Statement on Forward-Looking Information
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Cytophage to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements aredescribed under the caption “Risk Factors” in Cytophage’s Filing Statement dated January 30, 2024, which is available for view on SEDAR+ at www.sedarplus.ca. These risks include but are not limited to, the risks associated with the bacteriophage industry, such as operational risks in development or capital expenditures, the uncertainty of extensive regulatory approval requirements, government regulations, protection of intellectual property, product liability and rapid technological advancements. Forward-looking statements contained herein are made as of the date of this press release, and Cytophage disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
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